Market Trends From Around the Sound: Q4-2018
Is a recession coming?...a slow down in growth? Not for the greater Seattle-Bellevue metro area. 65,000 jobs were added to the area in 2018 and 60,000 more jobs per year are forecasted for the next 3 years. Seattle is a crucible of innovation and wise investment.
The real estate market recently went through a price correction in 2018. I experienced three housing markets in 2018: A White-Hot Seller’s Market (January-May 10th), Declining Market (May-mid October) and a Stabilizing/More Neutral Market (mid October to Present). There appeared to be more Buyer activity, but generally indecisive, in December than in October and November combined. Please refer to the following articles for more information:
HOW TO TIME THE MARKET, December 22, 2018
SLOWER (NOT LOWER) HOME PRICE GROWTH, NOVEMBER 16, 2018
🌬️🏘️WHAT TO MAKE OF SEATTLE’S MARKET COOLDOWN, SEPTEMBER 17, 2018
I interacted with a larger quantity of more deliberate Buyers on the market - relative to more indecisive Buyers in December - that were making offers on homes or planning to purchase by June. There were 3 housing markets in 2018: A White-Hot Seller’s Market (January-May 10th), Declining Market (May-mid October) and a Stabilizing/More Neutral Market (mid October to Present). Generally, the level of inventory is decreasing while the quantity of sales increases. The market is balancing out.
Sellers must be properly guided on market education based on recent data (last 30-60 days) > what objections buyers could have > investing in effective listing preparations (i.e. seller expenses that will reduce the sellers' taxable gain) tailored to their property > strategies for local and global marketing exposure > to reach their financial goals.
The following are the housing market trends for the fourth quarter of 2018, from the shores of Bainbridge Island’s waterfront homes and in-city living opportunities to the Eastside’s most distinguished residences.
Though inventory dipped from the high of 2.1 months reported in the third quarter of 2018, it shifted dramatically on an annual basis, from the anemic figure of 0.4 months in the fourth quarter of 2017 to 1.5 months in Q4-2018.
In the third quarter, we reported that record-breaking home price growth for single-family homes was moderating, and it continued to do so in Q4-2018 with a median sales price of $860,000.
The Bainbridge Island market underwent a typical seasonal slowdown in home sales, with many buyers taking a break from the market. Fewer sales, however, did not equate to home value depreciation, as the median sales price reached $1,035,000, higher than any figure reported on a quarterly basis for the year.
After a record-high inventory of 2.7 months for Seattle condos in the third quarter of 2018, inventory sank slightly to 2.2 months in the final quarter of 2018, a figure that drastically rose compared to the fourth quarter of 2017, when there was just 0.2 months of inventory. It comes as no surprise that a sustained influx of inventory is contributing to longer market times, which more than doubled from Q4-2017 (at 16 days) to Q4-2018 (at 36).