Local Market Update – June 2024
The numbers are in, and last month’s real estate sales data in our region told two tales. The first is a market that has had far more demand than supply, with rising prices and quickening market times reflecting this imbalance. The second tale is of a market attracting the attention of sellers eager to list their homes while prices are at their peak, finally helping address the demand-supply imbalance and giving buyers renewed hope after a challenging spring.
In May, both inventory levels and closed sales transactions increased compared to a year ago, indicating that home buyers and sellers alike have adjusted to interest rates hovering around 7%. Market strategists are hopeful that for-sale inventory will continue its upward trend, which could stabilize price levels over the summer months.
In May, the median sold price of a King County home hit the million-dollar mark, increasing 10% year over year to $1,001,000. This record-high price largely reflects home sales that went under contract in April, when inventory was at its scarcest and buyer competition at its most intense, with the majority of homes selling above list price and in under a week. King County condos also saw sold prices jump in May, rising 18% year over year to $595,000. As a counter to these price increases, the supply logjam is starting to break. By the end of May, King County had 48% more active residential listings and 26% more condo listings than it did when the month started. This influx of new inventory should help modulate prices in the months ahead.
Last month, the median sold price of a Seattle single-family home increased 7% year over year to $965,000. There were 13% more homes sold than a year ago and 68% closed at or above list price. Seattle condo prices rose in May, too, up 9% from $550,000 last year to $600,000. Despite these price increases, there is hope on the horizon for buyers: more selection to choose from. By May 31, the number of actively listed single-family homes was up 41% from May 1, and condo supply had risen by 20% during the month. This new inventory might slow price growth and offer light at the end of the tunnel for Seattle home and condo buyers previously shut out of the competitive spring market.
The Eastside real estate market saw a 32% year-over-year increase in the number of single-family homes sold in May, as well as a 17% bump in median residential sold prices, up from $1,450,000 a year ago to $1,699,975. Of the homes sold on the Eastside last month, almost 6 in 10 closed above list price, and those averaged only five days on the market. Despite these hyper-competitive factors, we may see the upcoming market mellowing in both price and pace, as the Eastside had 53% more active residential listings on May 31 than it had on May 1. The same dynamics played out in the Eastside condo market: Closed unit sales jumped 36% year over year, median sold prices were up 29% to $748,500, and active inventory climbed 38% over the course of the month.
In Snohomish County, the median sold price of a single-family home rose 6% year over year, from $780,000 in May 2023 to $828,000. Over half of May’s sold homes closed above list price and 89% sold in 30 days or less. These data reflect closed sales of listings that went under contract during the peak of the spring market, and as with the other three regions above, we may begin to see some market modulation in the coming months due to increased inventory. Snohomish County had 84% more residential listings and 32% more condo listings at the end of May than at the start of the month, a meteoric increase indeed.
In a market where bidding wars have been the norm and buyer competition has pushed home and condo prices ever higher, an infusion of new inventory is like a breath of fresh air. Though May’s sales data reflect the outcome of a seller-friendly spring market, the summer months should be an interesting mix of mellowing competition and sidelined buyers re-engaging with a more open listing landscape.
Read the full report here.
