Seattle Housing Market  – October 2019

Seattle Housing Market – October 2019

– Hello, Seattle! This is Christy Kinnaird
with Seattle Living Spaces coming to you with your
housing market update. Today we’re gonna talk about October 2019. The good news is in October, for Seattle, we had a mellow month for real estate. It was all metrics
staying very much the same or going in the more favorable direction. So we’re not back at the frenzy days. We’re not back in the free-fall days, ’cause do you know? Seattle real estate houses peaked in May of 2018 at $102,000 and hit the recent rock bottom of $685,000 in January (laughs) of this year. So that’s a 15% decrease (inhales sharply) in like eight months. That’s a lot. So we had a really rough end of 2018 and now 2019, we’re kind
of finding our new ground. There are four primary metrics that we like to discuss
that give you a good picture of the overall health of
our real estate market. The first one is median
sales price, right? Show me the money. How much does it cost? How much is my home worth? Well median is kind of,
you know the difference between median, average. If you don’t, then I
maybe should explain that in the next video, but not today. Median sales price in the city of Seattle in the month of October was $753,500. That is a nice little increase of 1.8% over the previous month
and about 1/2 a percent increase from the same time in 2018, and I am really pleased ’cause this is one of the first times that,
at least for houses, which include free-standing
houses and townhouses, that we’ve had
year-over-year price growth, which is great. It is modest, but that is good. We had such rapid price
growth for so long. It’s about time that we had (laughs) nice and mellow, right? It’s like going on the craziest
roller coaster vacation and then just coming home, going to work, hanging out with your spouse and your pet, drinking your coffee, having a nice life. We’re having the
spouse-pet-coffee nice life right now for Seattle real estate. Condos, not quite as robust. So our median sales price
in the city of Seattle for condos last month was $450,000. That is up. It’s up $5,000 from the month before, but it’s down 8% from this time last year. Condos are not as robust
as houses right now and we’ll get into that a little bit more, but we do have a nice, it’s above the rock
bottom median sales price but still condo prices are a little bit more fragile (laughs) than
single-family house prices. And then this one. How many days on market? So how long does it take for an offer for a home to get an accepted offer? We call this days on
market and a lot of times, like this month, it was 27 days. So people be like, “I can
sell your home in 27 days!” Well, that’s 27 days
until you get an offer. So that’s 27 days from the time you put your house on the market. People are looking at it. You’re sitting around wait, I mean, when you’re the seller, 27 days feels like a very long time. It is shorter than we had last month but significantly longer
than we had last year. It’s actually 10 days
longer than this same time in 2018, so 2015, ’16, ’17, ’18, we were seeing 11 days on market, 12 days on market. It was crazy. Now we’re seeing 27 but that is actually still kind of fast if you
look at the grand scheme of the historical averages. Condos have 39 days on the market, but that is fewer than
the 49 days on the market that we had last month, but longer than the 29 days that we had
this same time last year. So again, home prices, homes, single-family, prices are up a little bit. Condos are down a little bit. We’re definitely taking longer to sell than we did last year but not
as long as we did last month. And they’re selling houses, finally hundo! Back to 100%! Houses are selling, on average, for 100% of what they’re listed at. Now here is kind of why that
can be a deceiving metric, is that let’s say I list your house at $753,000, right? The median. And we’re on the market for 30 days, then we’re gonna do a price drop, right? We’re gonna drop that to, let’s say, $750 and then it sells at $750. Well, it will be recorded at selling at 100% of list price. So I would say 25% of the homes that have been on the market
for more than two weeks are doing price drops. So this 100% may be a
little bit deceiving. But it’s better than last month and it’s better than last year. Condos were selling for 99%,
which last month it was 98%. Last year it was 99%. So it’s good. People are still buying condos even though we have kind
of a longer market times and a little bit of softening prices. And then our final metric is, how balanced is it? How many months of inventory do we have? And that metric is kind of like, if no more houses came on the market, how many months would it
take for the buyer demand to basically consume all the
available properties for sale? It’s a little bit of a weird metric, but just go with me. This scale, this is how we judge. Is it a buyer’s market? A seller’s market? A neutral market? Typically zero to four
months of inventory, which both houses and condos
fall under that market, is a seller’s market. Now doesn’t feel like a
seller’s market right now for condos even though they
have 3.5 months of inventory, of supply, if you will. But technically that’s the definition. And four to six months would indicate a neutral market, which is really, I love. Balance for everybody. And then six plus months
indicates a market that favors the buyer. So we have 1.8 months supply
for houses and town houses, which is a drastic decline. Like that is a lot fewer than last month and last year. 2.3 and 2.8 respectively, I believe. And condos, 3 and 1/2 months. But that’s still, that’s
fewer than the month before and this time last year. So really balanced. Houses are a smidge
more robust than condos but nothing too hectic. There are still exceptions. I mean, if you want
tales from the streets, some houses that are
either really well-priced or have that, I call ’em
the heartstring houses. That house that everybody loves and you can’t quite put your finger on it. Those houses are still
selling in multiple offers. So you can’t predict everything but these are the general
trends that happened in the Seattle real estate market over the month of October. I appreciate you tuning
in and we’ll do this again next month!