Market Watch – September 15′

The Big Picture:

In the City of Seattle, properties under $1,000,000.

Single Family Homes:

The average sold price in September of 2015 was 7% higher than in September of 2014, and the total number of homes sold decreased 5% year over year.

September 15′ sold price: $534,00                 September 14′ sold price: $503,310

September 15′ # of sold homes: 591            September14′ # of sold homes: 622

Average days on market: 15 days                  September 2014: 22 days

Average List Price to Sales Price: 104%       September 2014: 101%

Condos:

The average sales price for condos in August jumped a whopping 42% year over year, and in September jumped 22% .  Condos are increasing in prices in rates of more than double that of single family homes, and the volume of condos sold continues to outpace single family homes also.

September 15′ sold price: $397,446              September 14′ sold price: $326,653

September 15′ # of sold condos: 247            September 14′ # of sold condos: 221

Average days on market: 20 days                  September 14′: 35 days

Average List Price to Sales Price: 101%      September 14′: 99%

Homes under the average of $534,000:

If you are looking for a home under half a million dollars, these are your best bets based off of September sales numbers

This is where you can get the most bang for your buck in today’s market:

  • $150,000 – $200,000 = Condos in Queen Anne/Magnolia have 4 months supply of inventory
  • $200,000 – $250,000 = Condos in North Seattle with 3 months supply
  • $250,000 – $300,000 = Single family homes in West Seattle with 2 months supply
  • $300,000 – $350,000 = Single family homes in Western Shoreline with 2 months supply
  • $350,000 – $400,000 = Single family homes in Beacon Hill with 2 months supply
  • $400,000 – $450,000 = Sadly, no neighborhood in Seattle has more than one months supply of inventory in this price range
  • $450,000 – $500,000 = Condos in Central Seattle/ Capitol Hill with 3 months of inventory
In conclusion:

It is still a red-hot sellers market.  The low number of days on market combined with the over 100% list-to-sales-price ratio show that September brought yet another month of fast-paced sales.  The continued double-digit price increases are starting to worry me.  Seattle has a strong economy, and limited land for growth and those are two factors that often contribute to increased demand and prices.  Interest rates are still low, allowing first-time buyers to still have some sense of affordability in this market.  The median income (in 2013) was $71,172 annually.  An individual that makes the median income and is able to put 20% down-payment, could currently “afford” a $2,400 per month mortgage payment, or a purchase price of $525,000.  Considering that the average price of a single family home is now $534,000, we have reached the stage in the real estate market where housing is no longer affordable to a resident making the median wage.  Although I expect prices to continue to increase, I think that 2016 will bring a market correction.  Be cautious buyers!

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