Though it is seemingly still a Seller’s Market in the city of Seattle, luxury home buyers in the area may be in luck. While inventories appear to be low in the higher-end neighborhoods, it is due to the annual decrease in listing activity and not based on increasing demand.
However, even with the decline in luxury housing inventory, changes to the median sale price have been recorded as staying relatively similar. Most luxury homes (over $620,000) have seen only a 3% median price increase, just matching the rate of inflation. Contrastingly, more affordable housing options have seen up to a 9% increase in their median pricing, due to the current high demand for affordable living.
Even with a growing demand for affordable housing in Seattle, overall home sale activity in the area appears to have gone down significantly. In addition to the annual dip in available housing we have also seen an increase in the total days on market, from an average of just 19 days in 2017, to 33 days at the end of 2018. Along with the extended amount of time on the market, the number of houses sold in the past year has decreased by roughly 20%, and the number of unsold homes has nearly doubled in the more luxury neighborhoods.
Overall, this signifies a slow cool-down for the luxury home market of the Seattle area, but not for those seeking more affordable housing options. Seattle Times real estate reporter, Mike Rosenberg even stated, “The priciest parts of the metro area have had the highest share of price cuts and the biggest drop in overall home sales”. If you’re looking to enter Seattle’s sought after real estate market, whether buying or selling, perhaps now is the time.
Whether you’re buying or selling, the global marketplace for luxury real estate is always changing. We have analysed the latest reports in luxury real estate to keep you up to date on current market trends in your area. This week’s Luxury Market Update features the area of Seattle, Washington; Where rugged coastline and rainforest climate meets chic city living.
This Market Report is Provided by: Brad Vancour, with Realogics Sotheby’s International Real Estate
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Realogics Sotheby’s International Real Estate, Q4 Report