26 April 2012

Seatte Real Estate Market Update ~ Inventory Way Down, Prices Up

The Seattle single-family home market continued to show signs of improvement in March.  (April statistics are due out in a couple of weeks.)  Highly competitive multiple offers abound and prices in some areas showed marked improvement over last March, with the following areas showing dramatic growth:
  • Area 700 - Queen Anne/Magnolia:  up 30.99% - $469,500 to $615,000
  • Area 710 - NE Seattle:  up 22.94% - $388,000 to $477,000
  • Area 390 - Capitol Hill/Madison Park/Central Area :  up 21.04% - $477,000 to $577,375
  • Area 705 - NW Seattle:  up 11.27% - $377,475 to $420,000
It must be noted that prices are fluctuating from month to month and that we are not seeing these big gains on a consistent basis, which to a certain extent is a relief.  This level of growth is a new phenomena, as the market has kicked into a higher gear in the past couple of months.  Conversely, we have not seen this kind of growth  since the boom years.  The effect of low inventory cannot be understated.  Months of inventory based on pending single-family home sales is down to an anemic 1.7 months.  Segregating non-distressed homes and distressed homes (ie:  short sales and bank-owned properties), months of inventory for the two categories continue to be nearly equal, clocking in at 1.7 and 2.1 months respectively.  Values are up year-over-year from $380K to 411K, with non-distressed homes selling at median price of 460K and distressed homes plummeting to 218K.

Lack of inventory is seen at all price points, areas, and property types.  Seattle condos show an improved position, and moving out from the Seattle and Eastside core, lowering inventory in the outskirts of King County and into Snohomish and Pierce Counties may be finally slowing depreciation.  The seeds of stability can be seen in a colony of North Seattle town homes I recently analysed, where prices had grown from roughly $290K to $320K in one year's time.  Growth of this magnitude in the city is hopefully a harbinger of growth moving outward into the rest of the region.

Below you will find detailed statistics.  As always, let me know if I can be of help in anyway! 

These charts represent all single-family homes (not condos but including town homes) in all Seattle areas.