The real estate market experienced a significant shift in the second half of 2022. After two years of historically low interest rates, the economic outlook, including inflation, caused many prospective homebuyers and sellers to pause. Although year-over-year growth in the twelve Pacific Northwest market areas has slowed, there are still many positive takeaways from the fourth quarter stats.

Let’s Break It Down

Between the fourth quarter of 2022 and the year prior, inventory has tripled, with 40% fewer homes sold than the previous year. King County currently favors sellers, with two months of inventory. Still, buyers are in a much better position than they were nearly a year ago when only 0.3 months of inventory was available. Even though interest rates have risen, but those who are able to manage the increase in their mortgage payments or are unaffected by the Federal Reserve's interest rate decisions will find more options, opportunities, and better bargaining power.

It is Wise to Keep an Eye on the Trends

While the median sold price of a residential home in King County saw a modest growth of 3.64%, the average price per square foot decreased by just over 3%. Click here to see how your neighborhood has performed. Inflation persisted in January, with the consumer price index rising 6.4% from a year ago, but has slowed, offering some relief and encouragement for consumers.

Seattle   |   Single-Family Homes

The demand for homes in Seattle has continued. The job market is still strong and hopeful new home buyers are still flocking to make Seattle their home. These numbers are much more reminiscent of our pre-pandemic statistics.

Eastside   |   Single-Family Homes

It is common for real estate markets to experience fluctuations. In mid-2020, the market in the Eastside saw remarkable gains with year-over-year median sold price increases of 20% to nearly 40%. However, it is important to note that these gains could not be sustained indefinitely. The median sold price dropped by 5%, and the average price per square foot also decreased by just over 4%. This could be attributed to a variety of factors, such as a shift in buyer demand, changes in the local economy, or other market forces.

Mercer Island   |   Single-Family Homes

The past six months have seen a dramatic shift in the real estate market, forcing many sellers and buyers to adjust their expectations. However, these figures suggest that while homes are taking longer to sell and there is a greater selection of inventory, Mercer Island homes are still worth more than their counterparts in the Eastside and Seattle.

Bainbridge Island   |   Single-Family Home

While prices did see continuous gains in recent years, the trendlines are currently relatively flat. There may be a resetting of expectations here, as one of the most significant shifts from 2021, is the average time a home is listed for sale on the market, 37 days.

Seattle   |   Condominiums

The Seattle condo market does have some key differences compared to the residential market, condos tend to move at a slower pace than single-family homes in the same area.

Final Thoughts

I am advising those who have to sell to consider creative financing ideas such as interest buydowns, seller terms, and checking to see if their current low-interest mortgage is 'assumable' by a buyer.

Choosing a professional real estate broker with superior marketing, property presentation, and negotiation skills is essential in this market. As a Realogics Sotheby’s International Realty knowledgeable broker, I am here to help you navigate the ever-changing market, ensuring that you make the best decision for your investment, lifestyle, and home.

Whether selling or buying, I'd love to guide you through your next real estate journey. Reach out today!