Keller Williams Greater Seattle, Ben Kakimoto, Seattle Condo Agent

Seattle Condo Market Update – February 2017

By on March 10, 2017 in Market Updates with 0 Comments

Depending on what side of the fence you’re on, February’s Seattle condo market results were either outstanding or a bit dispiriting – condo values continued to soar while the number of listings constricted even further.

The citywide Seattle condo median sales price rose 20.73% over last February to $474,950, just $50 short of the all-time high. With the exception of West Seattle, all Seattle neighborhoods reflected year-over-year increases (see chart at bottom).

One interesting tidbit was the median condo sales price in downtown had topped $680,000, which exceeded the Seattle single family median sales price of $675,000.

seattle condo median price change percentage February 2017

seattle condo median sales price February 2017

The number of Seattle condo listings for sale reduced in February to 126 units, which was 43.7% fewer than we had a year ago. The cyclical increase in listings that we’d normally expect hasn’t materialized. And, that’s a situation I suspect we’ll see over the next two to three years as buyers will be relying predominately on resale properties to purchase instead of new construction, which is very limited.

The inventory supply rate dipped to 0.6-months of supply, tying the lowest level we’ve experienced over the past 11 years. The inventory supply rate is a metric used to determine market conditions. A supply rate of less than 3-months is a seller’s market and at 0.6-months, we’re seeing an even tighter market for buyers.

In respects to neighborhood areas, Capitol Hill, downtown and NW Seattle (Ballard area) were the most striking, with less than half the number of condos for sale compared to last February (see chart at bottom of the article).

Also contributing to the lack of listings is that sellers face the same competitive market if they’re looking for another property to purchase, and as a result many have decided to stay put instead.

seattle condo market activity February 2017

seattle condo inventory supply February 2017

The number of pending transactions (listings with accepted offers) did increase over January to 217 units, though pendings were down 22.5% from last February.

With so few listings available, the number of pendings of move-in ready condos are not expected to rise very much. That said, as Nexus begin converting their reservations to purchase contracts shortly, pendings will increase.

seattle condo pending sales February 2017

Like pending transactions, the number of closed Seattle condo sales reflected similar results with a slight one-month improvement over January to 170 units, yet a significant 28.3% reduction from the same period a year ago.

Progressing through the year, with fewer condo listings expected for sale this year, the number of closings will be constrained as well.

seattle condo closed sales February 2017

Seattle condo market statistics February 2017
Source: NWMLS. Some figures were independently compiled by SeattleCondosAndLofts.com and were not published by the Northwest Multiple Listing Service.
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About the Author

About the Author: Ben Kakimoto is a Seattle condo and urban real estate marketing & listing specialist. Contact Ben to learn more about the Seattle condo and loft real estate market or about buying or selling a Seattle area condo. Find Ben on Google+, Twitter and Facebook. .

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