What do I need to know about deal season in Seattle? If you’re thinking about buying a home in Seattle, now might be the right time to enter the market. Currently, there is more inventory and there is less competition to buy a home. Interest rates are up, which helps weed out competition. Buyers can expect to pay very close to the list price, and there may even be opportunities to negotiate necessary repairs. The two best times of year to look for a home are often August and December. Many buyers have told me that they are waiting for interest rates to drop before they try to buy a home again. This tells me that the deal season window we have right now in Seattle could be short.
Keep reading for more details to back all of this up. Let’s grab some coffee and get into it!
Roy, What Kind of Coffee Are You Drinking Today?
Today we are at my Modern Green Built Townhouse listing in Capitol Hill. Since it’s 90 degrees outside, we will not be brewing any coffee today. I went down the street and picked up a couple of bottles of cold brew from my buddy Zack at Porchlight Coffee and Records. If you haven’t visited Zack’s store, you are missing out. His coffee is always good, and his taste in records is even better!
Coffee With Roy | Deal Season is ON!
Each “Coffee With Roy” episode starts with taking a look at demand rate. If you need a reminder as to what demand rate is, check out “Coffee with Roy: February 2022 Seattle Real Estate Market Update” for a quick refresh.
July 2022 | Seattle Real Estate Market Update | Deal Season in Seattle
As you already know, the demand rate can change neighborhood by neighborhood, and day by day. For this particular episode of Coffee with Roy, I ran the numbers for the demand rate on July 28th. And right now, the demand rates are really something else.
Seattle’s Real Estate Market Update aka the Demand Rate
- Luxury Homes – Demand Rate 5.82
- Single Family Homes – Demand Rate 1.43
- Condos – Demand Rate 2.15
Below, I’m going to dive into exactly what each of these numbers mean!
We consider Luxury Homes to be valued at $3 million or above. Luxury homes are currently at a demand rate of 5.82. This is close to double the number of available homes from last month (which was double from the month before). This market is solidly a buyer’s market, as there are nearly 6 homes for every buyer at this price point.
Single Family Homes
Right now, Single Family Homes are at a demand rate of 1.43. This is double what it was in early June. The number of active homes on the market in Seattle is up to 895, and the number of pending dropped to 627. We are now seeing more than one home available for every buyer in the market. Keep in mind that the average price for a Single Family Home is still hovering around $1.1 million.
Seattle Condos are at a demand rate of 2.15, which is not quite double what it was last month. This market segment is also very much a buyer’s market at the moment. It should go without saying that now is a great time to buy a condo in Seattle.
What Does it Mean to Be In Deal Season In Seattle?
Now that we have the data, how do we interpret it? The data, along with my personal experience and the experience of my team members, says that we are in a deal season for buyers. So what exactly do I mean when I say “Deal Season”?
Well, for me, the best deal is winning a home, period. And right now, you have less competition to buy a home in Seattle. We just went over the numbers, and there is more inventory (this year it’s a lot more inventory!) and generally less competition. Is every house perfect? No, but they weren’t perfect when the market was shooting up earlier this year, either. The fact that interest rates are up also helps weed out competition. We do see some homes lower their prices, but we also see homes listed for less than they would have if the market had continued on its trajectory of double-digit growth month over month.
To put it another way: three months ago, nearly every home had ten offers and was selling at list price plus 20%. When shopping the market today, you can expect to pay very close to the list price and have the possibility to negotiate necessary repairs. We are also seeing sellers offer to pay all or some of the buyer’s closing costs so that you can lock in a lower interest rate. This also means that you have more of a chance to purchase a home with less than 20% down.
Are prices higher than they were in January? YES. Are interest rates higher too? Yes! But there is significantly less competition now. And there is still the possibility of being able to buy down your interest rate or refinance in the future. Is it better to buy now than to wait for prices to drop even further? YES.
When is the Best Time to Buy a Home in Seattle?
When I take on new clients, we always talk about when the best time to buy a home in Seattle is. My response is always this: the very best time to buy a home is when you are ready. However, if you are fairly flexible, then there are some other thing you can consider to take advantage of deal season in Seattle.
Typically, the two best times of year to be out looking for a home are often August and December. Why? August is when everyone goes on vacation. It’s hot, and most people would rather be at the beach or the mountains than shopping for a home or prepping to sell. The end of the year is also great because most buyers will stop looking between Thanksgiving and New Years. Historically, we see a bump in buyer activity between September and early November, and I have a feeling this year we will see the same.
It’s my opinion that buying in a market that is dropping is better than buying in a market that is rising. The fact that a lot of buyers have told me they are waiting to come back in the market when interest rates drop tells me that the deal season window we have right now could be short. The stats we’re looking at now trail the market by about 30 days, too, so I wouldn’t bank on “waiting it out.” These types of market fluctuations historically happen every year, and every year, the prices continue to climb. Some years it’s a little, and some it’s a lot.
If You Want to Take Advantage of Deal Season In Seattle, What Should You Do First?
Regardless, now is a great time to talk to a lender and decide if right now is a good time for you to buy a condo, townhouse, or single-family home. After talking with Team Diva, the next big step is getting in touch with an awesome lender to start your pre-approval process. Feel free to contact me, and I can put you in touch with a great group of lenders who can help you navigate whether or not this is your time to buy.
If you want a quick and thorough breakdown of the entire process, Rocky just recorded a new video “15 Steps on How to Buy a House in Seattle” detailing it all out. I have already watched it twice. It’s that good. You can also check out the buyer’s section of our website.
What Does Deal Season in Seattle Mean for Sellers?
A quick tip for sellers: list your home competitively with the homes already on the market. This is not a time to be aggressive. You will need to pull out all the stops to woo the most qualified buyers. It will likely take longer than you think to get a good offer in hand. Give us a call and we can set you up for success.
Thank You For Watching Coffee with Roy | Deal Season in Seattle is ON!
What do I need to know about deal season in Seattle? Now might be the right time to enter the real estate market if you’ve been thinking about buying a home in Seattle. At the moment, there is more inventory and less competition to buy a home. Interest rates are up, which helps to weed out competition. Buyers can expect to pay close to the list price. There may even be opportunities to negotiate necessary repairs. The two best times of the year to look for a home are typically in August and December. Additionally, many buyers have shared with me that they are waiting for interest rates to go down before they try to enter the market again. This info tells me that deal season in Seattle could be short!
Thanks for sharing a cup of coffee. Reach out any time if you want to talk about deal season in Seattle, or any other home buying stuff in more detail.
Previous Episodes of Coffee With Roy:
- February 2022 Coffee With Roy | Seattle Real Estate Market
- March 2022 Coffee With Roy | Seattle Real Estate Market
- April 2022 Coffee With Roy | Seattle Real Estate Market
- May 2022 Coffee With Roy | Seattle Real Estate Market
- June 2022 Coffee With Roy | Seattle Real Estate Market
Thank you for sharing a cup of coffee with me. If you have someone who can benefit from this info, share this blog post and the video with them. If you have something you want to know more about, let me know!
We are here to help. Our team understands that this process can take a year or two. And we are more than willing to give you a personalized plan to get the ball rolling. Feel free to contact us directly at email@example.com or call/text 206-271-0264.