Wednesday, October 17, 2007

Seattle Real Estate Market Review

From July through the end of September homes have continued to appreciate in the greater Queen Anne, Magnolia, Ballard, and Greenlake areas. Although, the number of homes sold each month has consistently been much less this year in comparison to last year. For example, September of 2006 verses 2007 was off by 37%, but the average home appreciated 7% and the median home appreciated 8%, which is a respectable number.

In September homes that were priced right were being snatched up. The 95 homes that sold within the first 30 days of the listing date were purchased for 100% of the listing price (% sp/lp). While the 32 homes that sold between 31 to 60 days were purchased for 97.54% (% sp/lp). A difference of about 2.5%.

To date the month of October is chilly. Comparing 2007 to 2006 the number of homes sold is down 50% and the average home has sold for 1% less and the median home sold for 4% less. I expect this trend to continue for the rest of the year.

An interesting side point, in the last 6 months the number of listings that have not sold (i.e. expired, cancelled, temp. taken off the market) has increased by 21% from the same time period last year. I believe many sellers who do not need to sell are either renting or staying put.

To conclude it's a great time to buy! The real estate market in Seattle is unlikely to crash like elsewhere. The economy is good, job growth is good, and experts estimate 135,000 more people to move to Seattle in the next 5 years.

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