Market Trends From Around the Sound: Q1-2018
I am pleased to present a look at the housing market trends for the first quarter of 2018, from the shores of Bainbridge Island's waterfront homes and in-city living opportunities to the Eastside's most distinguished residences.
Seattle home prices remained red hot in the first quarter of 2018, as the median sale price reached $917,000, up over $30K from the final quarter of 2017 and 14.2% year-over-year.
A shortage of homes available continues on the Eastside, as the average days on market decreased by 5 days to just under one month with the average sales price up 13.2%.
Bainbridge Island continues to attract buyers, as the number of homes sold was up just over 28% from Q1-2017 despite a sharp 60.7% inventory increase.
Condominiums in Seattle continue to attract buyers as the average days on market in Q1-2018 was 15 days, down a staggering 34.8% compared to the first quarter of 2017.
Downtown Seattle Condo Market Spotlight
In the first quarter of 2018, downtown Seattle saw fewer resale condo sales than in the first quarter of 2017, mainly due to a lack of inventory to choose from. Anemic inventory is fueling concern over an affordability crisis, as there are currently just 44 resale homes available in the downtown core, which is home to 80,000 residents.
Above & Below: RSIR data reveals that the resale price of a downtown Seattle condo has reached $700,000, only 11-percent less than the median price of a single-family home in downtown Seattle.
As Dean Jones, President & CEO of Realogics Sotheby's International Realty states, "rapidly rising prices are the hallmark of a sustained supply and demand imbalance. We have some new presale developments on the horizon, but it will take years to deliver these new high-rise homes. This new supply will do little to address the current crisis and meanwhile, prices will continue to rise."
Looking for affordable price points, regardless of age group, size or quality level, has becoming increasingly difficult over the past few years. The heat map below illustrates the number of single-family homes sold in the city of Seattle by size and price point, showing a clear depletion of entry level price options and an increasingly strong glow at price points $1M and above.