This year has flown by, and the fact that we’re already in the fourth quarter, and ready to wrap up the year in just a few months, is a good reminder to reassess where you stand with your goals, particularly your real estate goals. Realogics Sotheby’s International Realty has released their Market Trends From Around the Sound report, diving into the most important data from 16 of the Puget Sound region’s communities. From Seattle to Tacoma and Snohomish County, the report is packed with insightful year-over-year comparisons of crucial data points like the median sales price, average days on market, and inventory levels.
After experiencing a slowdown that was actually more of a correction following the blazing hot seller’s market in 2021, the report’s data suggests that due to price growth in most areas analyzed and a large jump in new listings, both buyers and sellers are feeling inspired to once again achieve their real estate goals. Given the decreases in mortgage interest rates over the last year and a more stable economy, it appears that better conditions have opened the door of opportunity to many buyers who were previously unable to afford the high rates as they searched for their homes. Plus, with low inventory levels, there was a lack of options as they attempted to find their perfect property, whether it was a savvy investment purchase, first home, or dream estate. The increase in inventory in Q3-2024 was an encouraging change.
Sellers who listed their single-family home in Seattle during Q3 saw a 6.92% year-over-year increase in median sales price compared to that of Q3-2023. Although it was considered a seller’s market with 2.6 months of inventory—3 months is considered a neutral market—a 25.56% increase in listings meant that buyers searching during this year’s Q3 had much more choice than in the previous year. Seattle’s condominium market, with excellent lock-and-leave options for either a first-time home purchase, downsizing option, or investment opportunity, was favorable to buyers with ample inventory and a slight decrease in median sales price, as well as average price per square foot.
On Mercer Island, we’ve seen slight, but stable, price growth over the past three years’ Q3 data, with a median sales price of $2.44 million in Q3-2024. This desirable market has much less activity than that of Seattle, with less homes and higher price tags. Buyers who searched for a luxury home on Mercer Island were more motivated to close on their sales than we saw in other areas. In fact, Mercer Island boasted the lowest average days on market at 15 days, meaning that buyers were quick to make their move once a listing went live.
It is tempting to try and time the market and many buyers are waiting for the “perfect time” to jump in the market. The right time is always whenever you feel personally and financially ready. If you’re looking to put a pause on your plans in the hopes that the rates will dip below 6% (which experts predict will indeed happen in 2025), you might also be facing more competition down the road. Either way, I encourage you to prepare for your purchase today, by understanding the market data, establishing a list of needs and wants in your future home, and getting pre-approved so you have a complete overview of your budget.
To begin planning for your purchase or sale, please reach out to me so we can discuss the best course of action for your particular neighborhood. There’s no time like the present.