News Update : Why The Seattle-area housing market is dragging
The Seattle housing market has faced a year-long decline in 2023 which was further reinforced in November as well due to high interest rates along with a traditional winter slowdown in the fourth quarter in Washington State. The news article dives into some of the reasons that come out as a challenge in November in general and November 2023 in specific.
Stagnant Pricing
If we look on a month-on-month basis, keeping Kings County as an example the median price of a single-family home was $885,500 which was the same as October 2023. However, this price signifies a mammoth 7% increase from November of last year. Similar trends were observed in Snohomish, Pierce, and Kitsap counties, showcasing modest yet steady growth.
Lesser Listings
The City of Seattle witnessed a decline in new listings which means that less number of people are willing to sell bringing the over all market trend to a steady drop. Kings County showed a 2% decline from October and an 11% drop compared to November of 2022. Furthermore, Seattle and San Francisco recorded one of the most significant year-over-year drops in new listings in the U.S., indicating a supply-side challenge in the market.
Seller and Buyer Hesitation
The reduction in new listings translated into fewer pending sales across the region, particularly in Kitsap and Pierce counties, where sales plummeted by double-digit percentages from the previous year. The reluctance of potential move-up buyers to leave lower interest rates has contributed to a stagnation in the market.
The Affordability Question
Since buyers are facing the above-stated problems, the future buyer who is the seller now is not listing their house. This becomes a circular problem as the seller cannot afford to be a new buyer, delaying the selling process. The overall challenge that emerges is less number of buyers, sellers and listings in Seattle, Washington.
High Mortgage Rates
The rates have fallen compared to October 2023 but there is a significant increase from last year, again making the buyer and seller both hesitant to go for a year of the end transaction. This has also resulted in new listings being on the market for a longer time than usual. On average it takes six to seven weeks for a new listing to go off the market. Therefore, new and attractive strategies are required by developers and sellers to attract more potential buyers.
Nation Wide Trend
High mortgage rates nationwide have impacted the purchasing power of prospective buyers, stunting their ability to afford homes compared to a few years ago. The longer time on the market for homes in the Seattle area offers some relief to buyers, allowing for more thoughtful decision-making.
Therefore the Seattle housing market as a result of the above factors is in a downward trend. The may not look like a significant shift this year but as compared to last year the numbers soar causing a little discomfort for homeowners and developers. Understanding the market dynamics, embracing innovative approaches, and closely monitoring trends will be crucial for success in this evolving Seattle real estate landscape.
We Offer All the Services You Need in One Place! We Will Save You Time and Money!
Call Us at (425) 521-7916 Now to Get a Free Estimate or a Free Consultation for Any of Our Services!