The Seattle-Bellevue real estate market entered April, Q2-2024, following seasonal trends with an increasing supply of single-family homes on the market (For Sales) month over month while the quantity of properties going under contract (Pended) and Sold also increased.
Read MoreThe Seattle-Bellevue residential real estate market continues to be a strong sellers’ market in Q1-2024 while overall market activity remains at historic +10 year lows as it did in 2023. This trend also coincides with historically high mortgage interest rates that have reverted closer to the long-term 30-year fixed mortgage rate average of 7.74% for over 50 years.
Read MoreMany economists and market analysts had been forecasting the Federal Reserve would make 3 to 7 federal funds rate cuts in 2024 to respond to declining inflation and consumer demand together with a rise in unemployment and a slowing economy. However, recent data released during the past two weeks, including the Consumer Price Index (CPI) and Producer Price Index (PPI), indicates unexpected economic growth, persistent inflation and labor market strength. Accordingly, the Federal Reserve is now expected to delay fed funds rate cuts until there is more data supporting economic slowing.
Read MoreThe 2023 residential real estate market in the United States, including Seattle, experienced the lowest sales activity in well over a decade. However, 2024 is appearing to be a year of recovery as interest rates for 30-year fixed rate mortgages decreased from the historic high of 8.6% in October 2023 to about 6.6% as of today. Despite low demand from Buyers, the lower supply of homes for sale in the Puget Sound area supported 6.25% home price appreciation in King County for single-family homes in 2023.
Read MoreThe birth of our daughter was "scheduled" for December 26th, but she decided to arrive on November 28th, which made things a bit hectic around here. Poppy was born healthy at 6 lbs. 4 oz. and my wife is also doing well, as she continues to recover. Our son, Otto, is getting used to not being the only child and is helping out, as best he can. We feel very blessed and grateful. We just had a happy Hannukah and are now looking forward to a Merry Christmas. We wish you the happiest of holidays and a healthy new year!
Read MoreThe Seattle-Bellevue residential real estate market activity has continued to slow according to trend as we approach the holiday season. As forecasted in September, I believe King County single-family median price appreciation for 2023 will be approximately 10%. Inventory continues to be at +10 year record lows while the pool of ready, willing and able Buyers is slightly increased.
Read MoreThe resilient residential Seattle-Bellevue real estate market endured another economic record-breaking month that included the 10-year treasury note yield briefly pushing above 5% for the first time in 16 years while the 30-year conventional mortgage interest rate rose to over 8% for the first time in 23 years. Nationally, mortgage demand fell to its lowest level since 1995.
Read MoreThe 2023 residential Seattle-Bellevue real estate market continues adjusting to increasing mortgage interest rates together with a declining inventory of re-sale homes, now at historic lows.
According to Northwest Multiple Listing Service data, the median sold price for single-family homes in King County as of January 2023 was $799,950 (after the 20% price correction in 2022 due to higher interest rates) and peaked in June at $940,000 then decreased to approximately $910,000 in August 2023. Therefore, home prices have appreciated over 13% in 2023 to date and I expect the year will end with approximately 10% to 12% of annual home value appreciation. Home values and demand in 2023 appears to be adjusting to increasing mortgage interest rates.
Read MoreHome purchase and sales activity for the greater Seattle-Bellevue area is generally following seasonal market trends in August despite the 30-year mortgage rate surging to its highest level in 22 years to about 7.5%. The quantity of Sold properties (demand) increased almost 5% from July to August after the slowdown from June to July, forecasted last month. However, increasing interest rates and general market uncertainty has dampened the increase in properties going under contract to only about 1% this month. There is a lot of uncertainty in the local and global markets in the near term. However, it’s with certainty that I believe the long-term outlook for real estate values in the Puget Sound region will follow an upwards trendline.
Read MoreHome purchase and sales activity for the greater Seattle-Bellevue area is following typical seasonal market trends. Home sales activity peaked in mid-June and currently the quantity of Sold properties (demand) decreased approximately 6% from June to July while homes for sale (supply/inventory) increased over 1% during this period. Expected seasonality indicates the quantity of properties going under contract (Pending) may continue to gradually decrease until there’s a spike in activity from mid-August into September.
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