Market Watch – January 2017

Rally Real Estate Data Nerds!  It’s the best blog of the month!

A look at Single Family Homes:
  • Average sales price = $579,792
    • Down 4% from last month
    • Up 3% from January of last year
  • Average Days on Market = 26
    • Both last month AND last year had only 21 days on market
  • Homes sold for 102% of list price
    • Up 1% from December and same as January last year
  • 431 homes sold in Seattle in January
    • up 42% from last year
    • down 20% from December

This is a market movement that I like.   Prices are up only 3% from last year.  THAT is the most reasonable year-over-year price increase we have seen in a long time.  Tie that in with the slightly longer days on market, we have solid signs that, in January at least, the real estate market was a bit more balanced that it has been in the last few years.  In other good news, we are also seeing a lot more sales (42% more) than we did last year this time.  The primary driving force that will help stabilize our market is more available homes to purchase.  We still have a ton of buyers out there, so our demand greatly exceeds our supply.  Once we get more builders building, and existing home owners selling, we will see some pressure taken off the market and prices will stabilize.

A look at condos:
  • Average sales price = $441,700
    • An increase of 1% from December
    • An increase of 19% from January last year
  • Average Days on Market = 31 (same as last month)
  • Condos sold for 102% of list price
    • In most of 2016, they sold for 101% of list price
  • 128 condos sold in Seattle
    • Compared to the 185 sold condos in December, volume was down 30%
    • Compared to January last year, number of condos sold is up 8%

Condos are still seeing price increases, both a modest month-over-month, and a shocking year-over-year increase.  We are also seeing a creep up in the average sales price in comparison to the list price.  Until we can see several more large scale condo communities built and sold, it is likely that due to high demand, condo prices will continue to climb throughout 2017.

In summary:

Undoubtedly, it is still a sellers market.  We saw some minor relief in the single family market last month, but condos continued with price surges.  Limited inventory and a backlog of buyers is still haunting us.  Expect continued price increases, although potentially a bit more modest, and strong competition for the next 6 – 9 months.

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