October Market Snapshot

For the West Seattle market, September numbers were a little complicated.  Prices trending down, inventory up but pending numbers are up.  The market has softened a little as homes are sitting on market a little longer and we are seeing price reductions and or price negotiated.  However, the higher pending numbers though indicate a fairly healthy, more balanced market.  The homes went under contract later in the month and just haven’t had a chance to close yet. We’d expect pricing to remain steady through the end of the month and into October before everything winds down for the winter months (and elections).  

Median pricing took a little dip in September, but is typically a product of sales from the previous month. It can take 3-5 weeks for a property to close. We would expect median pricing to rise a little in October as pending sales were up last month. Many listings came out mid-month (after the holiday) so hadn’t closed by the end of the month. Another take away is buyers are getting more used to higher interest rates. Rates started rising in summer of 2022. Pricing took a big dip the 2nd half of 2022 but rose (and stayed fairly consistent) since then.

Inventory (of residential homes) is at its highest point in years. Inventory historically rises as we get deeper in the year. You might think differently if you are actively looking to buy right now as inventory might seem slim. While some homes are still selling the first week after list, many more homes are sitting on the market longer. Homes averaged 28 days on market last month. Furthermore, 66 homes on the market right now are new construction homes (residential, “condo” town home/adu). Those typically sit on market longer than traditional residential re-sales. Inventory is higher but maybe isn’t a true indicator of the market.

There have been less sales since the 2021 and 2022 years. It has been well documented that many home owners have been married to their rates and have sat on the sidelines the past couple of years. It will be interesting to watch the spring of 2025. Will this segment jump back in to the market post-election and if interest rates dip (or not rise)?

The Fed finally made a 1/2 percentage rate cut in mid September. The market had already been anticipating the cut so rates stayed consistent and actually rose a tad towards the end of the month. Many lenders where offering buy-downs to get the rates to closer to 6%. Much more friendly than the mid 7% from the beginning of the year.

Two of the most active price points the past 6 months remain the 700-799k (townhome or smaller home) and the over 1-1.25M. The 1.25-1.5M is pretty busy as well, closing 54 homes over this time span.

The Seattle market remains fairly stable. September and early-October typically are a second selling season and this late summer showed that. Inventory (1,276) trended up and Closed sales (436) were slightly down but Pending numbers jumped from 468 to 635 last month. Sellers took advantage of the beautiful weather and buyers seemed to try to lock up homes before the weather turns.

So far, 2024 has mirrored 2023. Despite higher interest rates, prices have stayed resilient (and elevated). While buyers revolted in the second have of 2022 (when rates started to rise), they have seemingly returned and accepted higher prices (and monthly costs).