Market Update December 2020

While record resale volumes are being experienced across the US and throughout the Seattle metro area, the in-city market remains slower by comparison, especially in downtown Seattle for both new and resale condominium inventory (with a few exceptions). This presents tremendous opportunity for buyers who are looking for an opportunity to live in a quality residence within the metropolitan area.

For resale condominiums in downtown Seattle, the demand was effectively flat year-over-year with 37 unit closings in October 2020, however, median home prices were compressed from $710,000 in 2019 to just $625,000 in 2020 – a correction of 12% but average prices rose slightly to $816 per sq. ft. (helped in part by two significant resale closings at Four Seasons for $9,200,000 and $9,500,000 posting $2,143 and $1,799 per sq. ft., respectively). It took 15 of the 37 closed units to offer a price reduction before finding a buyer with an average of 40 days on market. Meanwhile, active inventory is almost double the supply from a year ago as year-to-date 2020 pending and closed sales illustrates a slowdown compared to 2019, with 15% and 11%, respectively fewer contracts.

The reality is until there is an effective vaccine for COVID-19 and consumers begin to feel more comfortable associating in public spaces or high-density environments, the vitality of US most cities will remain dim as will the demand to lease, let alone own, apartments and condominiums. The recent spike in coronavirus cases in Seattle is particularly concerning and resulted in a roll back of restrictions including the inability to host real estate open houses and has quelled campaigns to market properties.

The good news is the low interest rates have helped make higher price points more attainable and for refinancing your current residence.

If you have any questions about how you can achieve your real estate goals this year or in 2021, we're pleased to offer assistance and look forward to connecting with you.