Matt Holmes

Matt Holmes

Co-founder at CoBuy
Global explorer. Dual US/UK national. Former investment banker. Real estate enthusiast. Rock&roll lover.
Matt Holmes

We surveyed top real estate pros from our network of agents, loan officers, and builders in and around Seattle to get the skinny on what’s going down in the Seattle housing market.  Data is a funny thing – often sliced, diced, and compiled to suit a purpose.  Our goal is simple: ask people who are well-positioned in the market what they’re seeing.  We asked 10 multiple choice questions + 1 open-ended question, and we’ll do the same next month.  

Is this a normalization of the Seattle housing market?

It’s official: Seattle is no longer the fastest appreciating housing market in the nation (Seattle is now ranked 12th).  Recent data indicates Seattle current annual Home Value Growth now stands at 9.1% versus an annualized rate of 14.2% a year ago.  This is well above the average annualized rate of Home Value Growth of 5.6% for Seattle: homes are still appreciating well above their average rate.

So is this a precursor to a financial apocalypse?  Or does this represent a rebalancing — a normalization of runaway home value appreciation that is actually a good thing for the market?  Depends on who you ask. Many industry veterans and pundits alike have been quick to point out that the rates at which homes have been appreciating in major metro areas like Seattle are simply not sustainable (or desirable).  This “easing” is definitely a welcome development to some first-time homebuyers and others who have seen their offers repeatedly declined in frenzied bidding wars, particularly those buyers who had decided to take a break.  

Home values are expected to rise between 5-6% in Seattle proper over the next year, with two new cities in the statistical Seattle metropolitan area expected to cross the threshold of $1 million median home value.  

What does this mean for those looking to buy a home in and around Seattle?  Expect fewer offers and generally less competition. In some cases, buyers may find they have more bargaining power than they would have earlier in the year.  This doesn’t mean that desirable homes in sought after locations should be expected to sit on the market for extended periods. Many properties are receiving multiple offers with competitive bidding situations.  Understanding current market trends and market dynamics is crucial to getting it right when it comes to negotiating terms on your new property. If you are considering co-buying a home with friends, family, or your partner, a great first step is to log on to CoBuy or get in touch.

 

Key Takeaways Across Seattle Housing Market

 The majority of respondents expect home prices to hold steady over the next 3 months

 Most respondents cited less competition amongst buyers versus last month

 Respondents overwhelmingly said inventory has improved versus last month

 Almost half of respondents said buyer traffic was down month-on-month

 Respondents said buyers are placing 1-4 offers on average before having an offer accepted, with 75% saying this number is down from last month

Respondents said listings are receiving 1-4 offers on average, with 4 in 5 saying this number is down from last month

96% of respondents said they are seeing seller concessions at least some of the time

Some respondents to our poll said they are seeing low appraisals come in, though there was no notable change month on month

Here’s what some of our respondents had to say about the Seattle housing market:

There are different markets out there. The lower price points and well-priced higher end [homes] are moving…

We typically expect a slow down after the 4th of July. This year, the market slowed down after Memorial Day.

Inventory went up 44%. While it’s still a seller’s market, we have more…listings sitting on the market for…[longer].

I welcome this market – we have mostly buyers and it’s great for them to get a bit of a break.

Definitely a shift in the market. Well priced properties are still moving quickly. Several price reductions noted, mostly away from city core.

The market is changing to be more buyer friendly. We are seeing contingent offers being accepted, repairs being negotiated and price reductions. Don’t let this fool you into anything the media is saying. We are in a healthy market…

 

Survey Responses

Here are the raw survey results from our network of real estate professionals:

 

 

 

 

 

 

 

 

 

 

For more info on how to get in on the housing market, check out CoBuy or subscribe to our mailing list.  Our online platform makes it easy to buy a home with friends, family, or a loved one.  We guide you through the process from start to finish, assisting with planning, joint financing, and preparing a co-ownership agreement.

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