Lessons from 2016
Through the 1st quarter of 2017, the Seattle area residential real estate market continues to experience historically low levels of inventory and high levels of buyer demand. As we head into the busy spring and summer months, we are encouraging our clients to pay attention to some important trends from last year that may highlight upcoming risks and opportunities.
Trend #1: Buyers were the most active in late spring & early summer.
- The graph below shows that the number of available homes that went pending last year peaked in May and June and then declined during the rest of the year.
- The graph also shows that the amount buyers had to pay over the list price peaked in April and May and then declined during the rest of the year.
Trend #2: The number of available homes peaked in late summer & early fall.
- The graph below shows that the greatest number of homes were on the market last year in July, August, and September.
Trend #3: The median sale price for homes peaked in April and May.
- The graph below shows the median price paid by buyers peaked at $580,000 for homes that went pending in May
- The median sale price had decreased 7.6% to $536,000 for homes that went pending in August
Conclusion: Even in very unbalanced real estate markets, it is critical that both buyers and sellers understand the relationship between supply and demand. If 2017 continues on a similar trajectory to 2016, buyers should expect an increasing number of options and a decreasing level of competition as they head into the late summer and early fall. On the flip side, if sellers want to maximize their potential return, they should try to have their home on the market sometime in the next 3 months.
If you have additional questions about this information or would like a more detailed and specific analysis done for your property or home search, please contact Don Kenney & Gregg Hatch at (206) 949-0732 or at firstname.lastname@example.org.