Keller Williams Greater Seattle

March 2010 Seattle Condo Update

By on April 10, 2010 in Feature, Market Updates, Real Estate with 2 Comments

Seattle’s condo market showed across the board improvement last month. The citywide median condo price rose 5.8% over the same period last year to $291,000, the second consecutive year-over-year increase.

The number of pending transactions (properties going under contract) and closed sales also reflected substantial increases over March of last year with pendings up 86.7% and closed sales climbing 51.3%. Compared to February, pendings increased 27.1% while closed sales improved 52.6%.

On the other hand, competition among sellers got a bit tougher with the number of active listings increasing 5.7% over last March. The 1,441 condo listings last month were the most that’s been reflected in the MLS database since September 2008. Fortunately, strong sales activity countered the increase in listings, which decreased the condo inventory supply rate to 5.4 months. With the exception of West Seattle, at least for one month, Seattle reflected normal market conditions overall.

The market continues to be fueled by first-time buyers with 68.3% of closed sales priced below $350,000. The upper-end market remained soft with only 19 closed sales priced above $500,000, or 10.7%.

The improvements we’ve seen over the past few months will likely continue through the end of April when the home buyer tax credits expire. Whether the velocity generated by the tax credits will propel the market through Summer is uncertain. I suspect the number of listings will continue to increase while sales activity slows as interest rates are expected to rise and FHA guideline & fee changes go into effect. That said, on a personal level, we’ve been getting a steady stream of second home and relocation buyers who are not incentivized by the tax credit program. And, first-time condo buyers won’t just fade away. Current condo prices are also reflecting decent values compared to the past 4-5 years.

Source: NWMLS. Though some figures were compiled independently and were not published by the NWMLS.

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About the Author

About the Author: Ben Kakimoto is a condo marketing specialist and publisher of The Seattle Condo Blog. Ben's focus is urban residential properties in Seattle's metropolitan core. Contact Ben to learn more about the Seattle condo and loft real estate market. Find Ben on Google+, Twitter and Facebook. .


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There Are 2 Brilliant Comments

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  1. Looks like the market is getting better month by month. Hopefully we keep seeing the increases for a good time to come.

  2. Hubert says:

    It is good to see consecutive months of positive news. I too am curious of how the market will respond once the tax credit expires. I live near Myrtle Beach SC and we have also seen positive movements in the market, particularly in condos. Hope it continues through the Summer.

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