As summer wrapped up, the local real estate market saw rising sold prices, declining mortgage rates and rising inventory. The price trend shows that sellers are still seeing gains by listing their homes. The rate and supply trends are motivating buyers to be active in the market this fall.
The Federal Reserve made their first rate reduction since March 2020, lowering interest rates by 50 basis points amid signs that inflation was moderating and the labor market was weakening. As of publishing, rates are sitting at around 6.3% for a 30-year fixed-rate loan but fluxuate often, sometimes on a daily basis.
Last month the median sold price of a King County single-family home sold price rose 5.4% year over year, up to $955,000 from $906,250 in August 2023. The monthly trend was more encouraging to home buyers, however, as August’s median sold price dipped 4.4% from July’s $999,000. Also good for buyers: the number of single-family home listings at the end of August was 29% higher than it was a year ago. King County condo prices stayed static year-over-year at $525,000, despite a 69% jump in available supply.
Seattle saw a 3.4% year-over-year increase in single-family home prices, up to $930,000 from $899,000 in August 2023. This represented a 4.4% monthly price drop from July’s median of $972,500. At the end of August, Seattle’s supply of single-family home listings was up 34% from the previous year, which is great news for buyers, but down 8% from July levels, which could benefit sellers. Seattle condo prices dropped 3.5% year over year, from $575,000 to $555,000, a more typical response to rising inventory, which was 39% higher than a year ago.
On the Eastside, the median sold price of a single-family home was $1,550,000 in August, up 6.7% year-over-year and down 4.3% from July. Pending sales dropped 16% from July, while inventory remained relatively flat between July and August. Eastside condo prices rose 2.3% year over year to $614,000, which was down 2.2% from July’s median of $627,500. At the end of August, the supply of listed condos was up 119% from the previous year and 18% from the end of July. Eastside buyers may be giving single-family homes another look as interest rates decline.
The Snohomish County market was quite active in August, with pending unit sales of single-family homes up 8% from July and 18% from the previous year. Median sold prices were up 6.8% year over year – to $780,000 from $730,563 in August 2023 – but down 4.7% from July’s median of $818,419. This month-over-month price dip occurred even in the face of continued low supply, at 1.2 months of inventory. Snohomish County condos saw August price gains, with the $589,975 median sold price up 24.2% from a year ago and 5.4% from July, despite inventory levels that were 76% higher than a year ago.
With all the doom and gloom national news out there, our local real estate market has positive markers, strong activity and relative balance. What do we have that they don't - HIGH PAYING JOBS! With hopes for further interest rate drops in the coming months, there should be opportunity ahead for both buyers and sellers and I would be honored to navigate the process with you!
For more info on your specific market, including the Eastside, North Sound, South Sound, and Seattle, click HERE!
Cheers to another great month!
