Great question – lots of Seattle buyers are wondering the same. With everything from the COVID-19 pandemic to the federal election, there’s a lot going on in Seattle these days. While the world is full of doubts and uncertainties, you may be wondering if now is even a good time to think about buying in Seattle?
Before we get into debunking that question, we want to highlight some important terminology when looking at the market.
Terminology
- Days on Market (D.O.M) – the average amount of days a property will spend on the market before it is sold. The higher the price of the home, the longer it is expected to stay on the market.
- Months of Inventory (M.O.I) – if no new listings were added to the market, how long current inventory would last before it sold out. Low inventory usually makes it a seller’s market, where high inventory levels typically favour buyers.
- Average Price – the summation of all of the prices on the market divided by the number of homes on the market at the time.
- Median Price – the “middle” price of all of the homes on the market. If we lined up the homes from the least expensive to the most expensive, the median price would be found right in the middle.
- Benchmark Price (BP) – the industry measurement often used by investors to compare the potential a property has compared to the established price of the property.
Trends
So now that you know what you’re looking for, let’s talk about some noticeable trends in the Seattle Market
- Homes are selling above asking: Homes in Seattle currently have a sale-to-list price of 101.4%, meaning that on average, homes are selling about 1% above their asking prices.
- Prices are going up (8% year over year)
- O.M is going down, currently at 10 days on market
So, What Does This Mean?
With increased prices and quick turnover, the Seattle Market is fairly competitive. Homes are selling quickly, and prices are currently inelastic due to the increase in demand. If you are thinking of buying in Portland, you shouldn’t write this year off, but you should be prepared.
When the market enters a state of competition like this, it’s important to be pre-approved and to know your non-negotiables well, so that when the time comes, you’ll be able to act fast without being confident in your decision.
In markets like this, it’s important to have the right agent representing you. If you are on the lookout for a new agent or want to chat with an agent about the Seattle or Bellevue real estate market, CONTACT ME today.
Contact me anytime for Seattle real estate, Bellevue homes, and Puget Sound Realty Services.
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