April 2023 Greater Seattle Property Report
Northwest MLS Real Estate Report
Is the real estate market, including the greater Seattle property market, slowing down? The first half of last year was a record period. Thus, numbers compared to last year are not going to be great. For example, most residential numbers are down from last April across the NWMLS: pending sales down 27%, closed sales are down 36%, and median sales price are down about 8.6%. On the other hand, 2023 has seen improvement as the year progresses. For instance, median sales price in January was $557,250 and it has increased each month. In April it was $603,250: up 8.3% from January. In addition, compared to January, April pending sales are up 23% and closed sales are up 63.5%. This is an impressive improvement, although, the number of closed sales can be partial explained for seasonal adjustments. (April is generally a busier sale’s season, but 63.5% is a larger than normal spread).
Interest Rates?
Rising interest rates are a double-edged sword. In one way the real estate market is being hurt by rising interest rates. It is putting downward pressure on sales prices because buyers cannot borrow as much money unless they want to pay more in interest. On the other hand, the real estate market is benefitting, because homeowners who locked in low interest rate are less likely to sell their homes unless they have had a change in their circumstance. Thus inventory remains lower than it typically would be and that has helped to stabilize property prices.
So What Does It All Mean?
In summary, the real estate market has improved this year. Last year was a record year for the first half, but slowed in the second half as rising interest rates shook up the market. However, buyers have now seemed to adjust for the interest rates, and with low inventory, multiple offers are not the norm, but are becoming more frequent once again. Thus, for the right house, buyers have to be ready to move quickly. At the same time sellers have to be cautious of pricing their homes correctly, because the market is not as hot as it once was.
Greater Seattle Real Estate Market
Following is a more detail look at homes, condos, luxury real estate, and waterfront homes in Seattle, Bellevue, and Mercer Island for the past month.
Seattle, Bellevue, and Mercer Island Homes
Similar to NWMLS, King County median home prices are down 12% from last April, but have increased throughout 2023. Year to date, the median price is up 12% and more specifically 4% since last month. For example, King County median home price this April was $875,000 compared to $995,000 last April and $781,098 just this January.
Concentrating on home sales on Mercer Island: median home price decreased 21.8% from $2.770 million to $2.165 million. However this was based on limited amount of transactions. This April there were 19 Mercer Island home sales compared to 31 the previous April.
Furthermore, Seattle had less sales (561 vs 835) and a lower median ($865,000 vs $991,000) when comparing April 2023 with the previous year.
On the contrary, greater Bellevue real estate market, including Clyde Hill, Medina, Hunts Point and Yarrow Point, saw an increase in median sales price from a year ago, despite the decreased number of sales. The median sale price increased 3.7% from $2.120 minion to $2.199 million. Sales transaction decreased from 131 to 68. ,
Condo Market in Seattle, Bellevue, and Mercer Island
King County condo prices are faring better than the overall real estate market. Mainly due to the Seattle condo market which accounts for 43% of the overall King County condo market. The median price for a Seattle condo is up 2.8% from last year ($545,000 vs $530,000). The strong Seattle condo market helped the King County market to so the median sales price only decrease by 3%. Other areas did not do as well. For example, the Greater Bellevue condo median price was down 2.4% which was not far off the mark. Alternatively, Kirkland saw a drop in the number of big condo sales. In April 2022, there were 5 condo sales of over $ 2 million, in April 2023 there was only one. Thus, the median price of a Kirkland condo dropped 31%.
The number of condo sales are down in both Seattle (357 to 181), Bellevue (62 to 38) and Kirkland (54 to 29). Mercer Island condo market is very small. For instance, there were five condo sales last April and two this April. King County condo sales decreased from 708 to 420.
Seattle, Bellevue, and Mercer Island Luxury Real Estate Market
Mercer Island is a luxury real estate market. For example, out of 19 Mercer Island homes that sold this past month, 14 sold for $2 million or more and none sold for under $1 million. The most expensive Mercer Island home sold in April for $5.2 million. The Mercer Island view property has shared access to a beach and a dock with day moorage.
The Bellevue area is also a luxury property market. The average sales price of a home in the Bellevue area, including Hunts Point, Medina, Clyde Hill, and Yarrow Point, was $2.693 million. Furthermore, over half (38 out of 68) of the Bellevue homes sold for $2 million or more. The most expensive sale was a new construction home on Evergreen Point that sold for $16,518,888.
The average sales price for a Seattle home was $1.075 million in April, but not nearly as high as Bellevue and Mercer Island. In addition, Seattle had a total of 37 home sales of $2 million or more. The most expensive sale was a Seattle waterfront home that sold for $11.5 million in Windermere.
Is Greater Seattle Real Estate Slowing Down?
As seen throughout blog, the Greater Seattle real estate market has slowed in both transactions and pricing as compared to last year, but as 2023 as progressed the real estate market has seen more transactions and higher prices. In addition, there have been signs that the market has been improving. For example, agents have noticed an uptick in multiple offers this spring.
Every real estate market is different. To navigate the current issues, contact one of Ewing and Clark’s real estate brokers. Ewing and Clark has provided exceptional real estate service to Greater Seattle since 1900. Whether you are looking for a waterfront property in Whidbey, a luxury home in Capitol Hill, or your first Seattle home, please contact us
