Seattle Condo Market Update – November 2020

We’ve been discussing the struggling condo market for months, and now it’s time for a deep-dive into WHAT is going on with the Seattle condo market.

 

The biggest impact is that we have more supply than we have ever seen, and diminishing buyer demand:

Buyer demand has dipped a little, but we are seeing a rate of condos going up for sale that we have not seen in the 10 years I have been collecting this data.

Why are so many people selling?

Several reasons. 

  1. Some want more space.  With the seemingly endless work from home life, along with a lot more time at home, condo dwellers are seeking different homes with more space that can accommodate their new needs.
  2. Some folks are taking advantage of the work from home to really become remote workers. They are leaving Seattle all together and are selling their condo and starting fresh somewhere else.
  3. Job loss.  Condos are often the most affordable option for home ownership, and those buyers are most susceptible to job loss during times of economic uncertainty.

What neighborhoods are most impacted?

Easy answer – the neighborhoods with the most density and proximity to the downtown core.

   

 

 

 

 

 

When we look at the discrepancy between number of condos for sale and number of condos going pending, the “gap” between them is even more extreme for condos in downtown and Capitol Hill.

 

 

 

Are all condo markets struggling??  Is this the end of condo life as we know it?

No.  If we look at some of our friendly neighbors to the North, we can see that condos have gotten MORE popular and more competitive:

 

 

 

 

 

 

Buyers are reaching to “the burbs” in all of the ways right now, including condos.  This is an indicator that maybe it isn’t the small space or germy shared areas, but actually the City of Seattle and resident fatigue with all the Big City Issues we face in Seattle.

 

When will the Seattle condo market rebound?

If 2020 has taught me anything, it is that we really have no idea what the heck will happen next.  My guess is that the popularity of condo living will return once we hit 50/50/50:

50% of the major employers (Amazon, Google, Facebook, Expedia etc)

bring 50% of the workforce

back to the office at least 50% of the time

Until then, I don’t see an event that will trigger a wave of buyers to want to live in condos.

Watch the video HERE


Seattle Real Estate Trends – Episode 34 – 10/27/20

Holding Steady…

We are seeing pretty much the same number of new listings and pending listings as we did last week.  This is the first time in recorded history that we have not seen at least a 25% decline in the number of transactions during an elections season.  2020 continues to be the year that no one could predict.

  Demand for houses is still strong, but we are starting to see some houses that we would have expected to get multiple offers only end up getting one offer, or no offers at all.  Buyers are certainly extra skittish right now, with uncertainty over the election and the long term impact of COIVD.  

Watch the video here


*Canceled* Marvelous Magnolia! Spacious and bright condo   

Marvelous Magnolia!

This corner-unit condo is flooded with natural light!   Spacious and stylish, this condo is move-in ready.   Ideally located in sleepy Magnolia, this condo also has easy and fast access to the rest of Seattle as well

Can we talk about this kitchen!?!?!?!

Granite counters, stainless appliances and lots of storage space.  This is the perfect place to make your favorite meal! This condo also has the rare wood-burning fireplace, where you can snuggle up and pass the time on all our dark, cold and wet Seattle winter evenings.

There is tons more to love about this condo.  You have a parking spot, an in-unit washer and dryer and lots of storage.  The building is pet friendly and rental friendly!

 
Matterport 3D Tour here

 

 

Watch the Video HERE.

The Fine Print:

– 839 square feet

– 2 beds/1 bath

– $417 HOA dues

– 2020 annual taxes $3,562

– 1 garage parking spots

– Listed at $375,000

–  NWMLS #1682293


Seattle Real Estate Trends – Episode 34 – 10/21/20

Finally!  The seasonal slow down has begun.

 

Usually I like to have 4 weeks of consecutive data showing fewer new listings and total listings, but I am going to call this one early.  We are past the peak of new listings and total listings for sale.  But that doesn’t mean that buyer demand has changed.  Again we are seeing a stark contrast between the supply and demand for houses and that for condos.

The data:

Fewer new listings (for all home types) and fewer total properties for sale!  That is tough news for the large pool of eager home buyers, as we are still seeing multiple offers and homes selling in just a few days.  Fewer condos is the smallest relief for those trying to sell a condo, as the condo market has been over saturated and continues to see depressed buyer demand.

   * The people that are really winning in this market are sellers of single family homes on decent sized lots and anyone wanting to buy a condo within 10 miles of downtown Seattle, especially a studio or one bedroom condo*

Other interesting notes:

  1. We saw more price drops this week than we have in the last 3 months.  12% of all houses and 11% of all condo actively for sale did a price drop last week.
  2. Two weeks ago, we saw a notable increase in canceled listings.  This week, we were back to the “new average” or 6% of all houses and condos canceling their listing
  3. Even with slightly fewer properties for sale, we saw an uptick in number of pending properties, meaning buyer demand is not slowing down at the same pace as the number of new listings are

Watch the Video Here

Seattle Real Estate Trends – Episode 33 – 10/13/20

Another week of more total properties for sale:

 

 

More houses hit the market this week than last week, and a lot more than last year.  We had a much needed drop in the number of new condo listings compared with last week, but still 70% more condos hit the market this week than back in 2019.  We really have two drastically different real estate markets happening, as noted in these charts below:

 

Supply and demand for houses runs almost parallel.  This shows that the buyer demand is so strong, even as the total number of available houses for sale continues to climb.

Condos, on the other hand have a very steady (and low) demand, but a rapidly increasing amount of condos for sale.

Watch the video HERE