March numbers are in, and supply and demand continue to be an issue for the Seattle Eastside market. We saw the largest median closed sales price ever in March! Eastside median sale prices rose $212,500 (14.5%) in just one month. The second highest was during COVID at $182,000, and before that in 2017 at $87,039. This price increase is directly related to the demand of homes and lack of inventory.
Lack of Inventory Continues to be an Issue for Buyers
Inventory continues to be an issue for today’s buyers but a major bonus for today’s sellers. March inventory at just 367 homes is about half of the 10-year average (685) for homes for sale. This lack of inventory in the Seattle Eastside has created a higher buyer demand. Last month, 53% of homes sold in multiple offer scenarios, with the sales price exceeding the original asking price by 9%.
What’s Happening with Interest Rates?
While the Feds promised rate reductions this year, we have yet to see that. Rates have held relatively steady, fluctuating up and down week by week. These rates, which are the highest we’ve seen since the early 2000s, are causing people to sit tight in their homes unless necessary to move. Many people who are moving have opted to downgrade their homes to keep the same monthly principal and interest payments. We don’t anticipate significant interest rate changes in the coming months. That said, we’re hopeful that the market will soften as a result.
Being a Homebuyer in Today’s Market
Many buyers who have been sitting on the sidelines waiting for rate drops have accepted the new reality of rates and are reentering the market, regardless of rates. These buyers are more focused and prepared than ever to find the right home. They are willing to pay a premium for the right home but expect for it to be well-presented and priced correctly. That said, sellers who don’t prepare their home for the market thinking that it’s a seller’s market and anything will go, are not having the success they hoped for. When homes are priced correctly, presented professionally, and brought onto the market strategically, they see the benefits of this market with multiple offers, and oftentimes, their homes sell for far over the list price.
What’s to Come Later this Year
There is no crystal ball to tell the future of this year. If rates continue to climb, we anticipate buyers pulling back again. This will cause the prices to soften. If rates do drop, we will see another influx of buyers entering the market, which will further drive escalating home prices and competition.
The Bottom Line
It’s a great time to be a seller! But remember, just because it’s a seller’s market, doesn’t mean it’s as simple as slapping a for sale sign on your house and kicking your feet up. Remember that today’s buyers are savvy and serious about their move. If you’re going to make a move in this market, find a local agent that you can trust and who can guide you through this tricky market, regardless of whether you’re a buyer or seller.