What do I need to know about the Seattle real estate market shift? Demand for homes is slowing ever so slightly, and supply is creeping up; this is the shift. Now is a great time for buyers to enter the market and there is just a little less competition. It is also still a very good time to sell—prices are still up 15-20% from January 2022. However, your house needs to be absolutely spotless and beautifully prepared when you go to sell.
Early numbers showed a shift coming, and current numbers show it’s here. What does a shifting market mean for you? Let’s grab some coffee and get into it.
Roy, What Kind of Coffee Are You Drinking Today?
Since we are shooting this video at Kim’s listing here at the Brix on North Capitol Hill, I figured we would go downstairs to Vivace and grab an americano. This is my absolute favorite americano in the city. An americano is just espresso and water so it’s easy to tell if it’s made well. Vivace is a Seattle icon and is worth a visit if you are up here on Broadway.
Coffee with Roy | Seattle Real Estate Market The Shift
Let’s get started like we do every week! I’ll share a quick recap of the numbers by looking at the Demand Rate. If you need a refresher on what demand rate is, take a moment to look at “Coffee with Roy: February 2022 Seattle Real Estate Market Update.”
June 2022 | Seattle Real Estate Market Update
The demand rate can change neighborhood by neighborhood, day by day. In this next section, I will be sharing a look at active and pending homes, and how things stack up right now for June 2022.
Seattle’s Real Estate Market Update aka the Demand Rate
- Luxury Homes – Demand Rate 3.73
- Single Family Homes – Demand Rate 0.70
- Condos – Demand Rate 1.3
Below, I’m going to dive into exactly what each of these numbers mean!
We consider Luxury Homes to be homes valued at $3M or above. These homes are at a demand rate of 3.73. This is close to double the number of available homes from last month. This particular market is solidly a buyer’s market with a lot of excesses.
Single Family Homes
Single Family Homes are at a demand rate of .70, which is up from last month. The number of actives came up by 200 homes. At the same time, the number of pending homes stayed almost the same. We are inching closer and closer to one home for every buyer.
Seattle Condos are at a demand rate of 1.3. This is significantly higher than it was last month and is starting to lean toward a solid buyer’s market.
Now that we have the numbers, how do we use them? AND what do I mean by a “market shift?”
What Do I Need to Know About the Seattle Real Estate Market Shift?
Last month, I brought up how home listing prices are going up and up. Interest rates are doing the same. At some point, there will be a natural plateau. We could be there now. Here is what is happening. Buyers will be getting into contracts who have been left out of the market the last few months. New buyers are going to slowly start new searches. And most buyers will lower their maximum purchase price due to rising interest rates.
Sellers still continue to list their homes because they want to move. And of course, they will want to get the same number of offers as their neighbors. That is not going to be in the cards, however. Not every home will be getting multiple offers. Heidi Groover at the Seattle Times had a good explainer in the paper this week: “Seattle’s red-hot home market is cooling. Here are the 3 signs. See what is happening near you.”
For me, it’s simple supply and demand. Demand is slowing ever so slightly and supply is creeping up ever so slightly. This is the shift. We are not seeing every house selling with 20 offers for $100k over asking at this point. Some might still. But the market is taking a little bit of a breather. And for me, that’s a-ok.
What Does the Seattle Real Estate Market Shift Mean For Buyers & Sellers?
Let’s dive into some advice for you all.
Now is a very good time to enter the market. Some homes are missing their offer review date. So you can be more competitive without having to waive every single contingency. When a market is swinging up, we have to fight to win. We call this a seller’s market. When the market starts to level off, we may still have to fight to win on some homes, but others can be a lot easier to get into contract.
Buyer’s agents will need to dust off their negotiation skills. They will need to set proper expectations of what is ok to ask for and what is better to walk away from. In this current market, you’re more likely to get into a contract with an offer that includes a full inspection contingency. This is great! Keep in mind, that a seller isn’t going to change out the carpet for you, but they may offer a credit for a new hot water tank.
Now is still a very good time to sell. Prices are still up 15 – 20% above where they were in January. Right now, though, your house needs to be spotless if you are going to get top dollar. Check out Kim’s video on “How to Sell a Home in Seattle | A Top Producer Shares All of Her Secrets for Getting Top Dollar.” She literally is giving you all the secrets you need to win in any market.
How Can I Make Sure My Seattle Home Sells?
We are putting out a lot of seller videos right now to help you get your house prepped. A great example is this one from Kim about staging: “Do I Have to Stage My Home to Sell It?” I’ll tell you honestly: Using your neighbor’s house that sold in April as an example of how your house is going to do is out of the question. No two homes are the same and no two markets are either. You need to be realistic about how we price your home. And you can’t skimp on how you prep the home for this market.
We don’t want to get into a situation where we are chasing the market down. Meaning we list and go through multiple rounds of price drops to meet where other homes in the market are listed. With Team Diva, you can expect us to help you decide how to fix up your house to list. And how to price for the market you’re in right now.
I work with both buyers and sellers. And I can say this confidently. Now is the time to make sure you are working with an experienced broker who is looking out for your best interests. Brokers who have been in business for the last four or five years only know one market. The goal is always to get you into a new home. Or out of your current home and onward to something better. Sometimes you can be aggressive, but more often you need to be practical.
Thank You For Watching Coffee with Roy | Seattle Real Estate Market Shift
What do I need to know about the Seattle real estate market shift? The demand for homes is slowly just a bit, and supply is slightly creeping up. This is the shift. If you’re a buyer, now is a great time to enter the market. There is just a little less competition. If you want to sell your home, it’s still a very good time to sell; prices are still up 15-20% from January 2022. Just know that your house needs to be impeccably prepped when you go to sell!
Thanks for sharing a cup of coffee. Hopefully next month it’ll be time to switch to iced coffees. Have a great month and hit me up any time if you want to talk about this Seattle Real Estate Market Shift 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
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.