Seattle Real Estate Market Watch 8/15/23
Hey, it’s Zach McDonald, your real estate agent with Real Property Associates and this is my Seattle Real Estate Market Watch for August 15th, 2023.
Let’s talk about the Seattle housing market here. And in these videos I try to keep these relatively brief and if you really wanna dive into the data, we do the Seattle Real Estate Market updates. Those are monthly updates where we look back, these are a snapshot of what’s going on in the market as of the last week, and we’re looking at data from King and Snohomish County. And all this data comes right from the Multiple Listing Service Northwest MLS. So, um, without further ado, I wanna share a story that I think is illustrating how the market’s going. Last week in my market update, I mentioned that I have a few listings that have been sitting on the market, but at the same time some things are selling fast and over asking price. And I listed a house in Lynnwood, a three bedroom, one bath rambler, one story kind of starter house, outdated, alright?
And we listed it right in line with comparables, maybe even pushing it a tiny bit. And we ended up getting three offers within three days. And all of those offers were more than 5% above asking price. And we ended up just slightly higher than that. But almost all the offers were in an identical spot. And it’s interesting because none of the comparables suggested we should be there, but we were right? So there’s competition on that listing, but still, I have two other listings, one in North Edmonds, one in South Edmonds, my own house. And those have been sitting for a little bit and I think it’s because they’re priced, uh, a little bit on the higher side. Both have had a recent price reduction, but at the same time you have buyers with higher interest rates right now. And we talked about in the previous couple weeks how the interest rates are almost 2% or more above where they were at the same time last year, but prices are about the same.
So last year interest rates were in the five-ish range, a little bit higher in climbing, and they did climb all the way until uh, November where they hit the sevens. And that’s where we’re at essentially now. Uh, Mortgage News Daily is saying 7.26 as of 8/15 for their daily mortgage market survey, and that’s only 0.2% up from last week. So they’ve remained relatively stable for the week, but they’re back to the highs from November that we hadn’t seen in quite a while. And at the same time, houses are selling for, well, about the same prices they were last year. So it makes it more difficult to afford the house. And I think that’s the struggle with some of these houses in the upper eights, low nines, even in the million dollar range that are maybe more of a second house, a house that’s larger than you might need.
Um, or if you are buying a house like that, you may already own something else and you have to decide whether you want to upgrade and take on that larger mortgage or just stay put. So at the same time though, you have houses on the other end of the spectrum that are bigger and nicer. I saw one in the Woodway Highlands, a great neighborhood that was listed at 2.3 million. Arguably it’s slightly outdated because it was built in the early two thousands, but that house sold in six days. All right, super fast. So you’ve got the $600,000 house, the two plus million dollar house, but then you’ve got all these houses in between where I think that they’re sitting a little bit taking a little bit longer to sell. Again, that’s not the rule, but it is something that we’re seeing as a trend here as of late.
Now let’s talk about the market stats here real quick. And as a reminder, the last time we did a market watch was two weeks ago. So I’m going to reference the data from a couple weeks ago, but just know I was looking at the data last week as well and it was relatively similar. So the new listings coming on the market this last week, 560 in King in Snohomish County, uh, residential listings, uh, 542 last time we did this. So a little bit of an uptick in the new listings in August here we saw 63 houses come back on the market. And as a reminder, those are a lot of times canceled listings that are then re-listed or expired listings that are then re-listed. So we saw 23 expireds and 85 canceled listings. And again, a lot of those are coming back on the market, not necessarily things that have been off for a long time.
List price reductions, we had 333 versus 334 a couple weeks ago. So staying in line there again, I shared the story about the multiple offers, but at the same time, there are plenty that are taking a little bit more time to sell contingent purchases, 27 contingent purchases, which is a little bit of an uptick than we’ve seen in previous months. 22 was a couple weeks ago. Um, and then the listings pending. 785 pendings two weeks ago, 702 this last week. The end of the month was a couple weeks ago, so sometimes those numbers are a little higher. Sold listings were also higher a couple weeks ago at six 90 versus 548. Uh, but again, 548 sold five 60 new listings. So we’re pretty much seeing those numbers staying about the same. And there is, and we’ll see this again at the end of the month, a lot less listings than we normally see in August.
And it is putting pressure on the existing homes. I talked to some other agents this week that have shown some of my listings or I’ve shown theirs, and the word that gets thrown out is there’s just not a lot out there to choose from, which is good if you’re a seller because that means the buyers that are out there are competing for the fewer houses. But at the same time, people are being fairly choosy if they are buying right now because well they can be. And as people start coming back from summer vacations and we start to see some of that, I suspect some of these listings maybe that have taken a little bit of time to sell over the summer will sell here soon as people finish up summer vacations. But I also think the rest of this year is going to be pretty low on inventory.
Typically September, October we’ll start to see more coming on. Um, so if you are a buyer and you’re kind of watching this thinking, when should I buy this year or should I buy this year? You’re probably looking at the most options in uh, September, I would say coming in September, October. I do expect we’ll see those listing numbers dwindle quite a bit into the winter months and that’s just gonna put a lot more pressure again on the homes available and the prices, which is what we saw this year when the inventory numbers or the amount of houses for the buyers shrunk down. So I would expect as we wrap up the year, I mentioned this a lot of different times, I think at this point that we will see higher prices year over year at the end of the year, and I think we’re gonna see quite a bit of competition heading into 2024, even if rates remain around where they’re at now, the caveat, I think if rates continue to climb, we may see a little bit of a change in the buyer activity, but as of now, buyers are still out there and the buyer activity remains pretty similar to how it has been this year.
I think if you are able to buy with the 6.5% rate, a lot of people are still in that same ballpark with a 7% rate. But I have, and I saw this the other day, a buyer and their agent were gonna show one of my listings and they canceled the showing because of rates. And it was kind of like, Hey, we’re, eh, rates have gone up a little since we did our pre-approval and now we’re pushing it a little bit. So, um, again, things to monitor. I think the fear is lower, which is a big part of last year’s, uh, downward trend in prices, but the affordability is still a factor here that we want to pay attention to for the rest of the year. Thanks so much for watching this week’s Seattle Real Estate Market Watch. I know if you made it to the end of this video that you got some value. So, um, if you would please consider subscribing to the channel if you haven’t done so yet. And if you know somebody who could benefit from this video, please consider sharing it with them.