November 2010 Seattle Condo Market Update
Coming out of a fairly disastrous October, November’s Seattle condo market stats look a little better. The citywide Seattle median condo price was $263,500, an improvement over October by 5.4%, yet down 3.13% compared last November.
The number of closed sales in November dropped rather significantly to just 98 units throughout Seattle. That’s a 49.2% year-over-year drop and and a 21% dip from the prior month. Though, November 2009 closings were artificially high due to the October 31st tax credit contract deadline last year.
On the other hand, the number of pending transactions (condos going under contract) remained stable…151 pending sales compared to 153 last November. That also reflected a one-month improvement of 11.9% in Seattle condo sales. Hopefully, we can carry that momentum to finish out the year.
As seasonally expected, the number of active listings dipped to 1,197 units and will continue to decline until January.
The increase in sales last month, combined with the reduced number of listings, resulted in a more favorable inventory supply rate of 7.9 months, based on pending transactions. However, calculated with closed units, the Seattle condo inventory supply rate jumped to 12.2 months. Two very different numbers, though I’m more inclined to agree with the closed unit method. However, this is a citywide rate and actual market conditions will vary by neighborhood.
We should expect a slight dip in values with reduced inventory and fewer sales and closings to round out 2010.
It looks like there are some exceptional opportunities in the Seattle condo market right now. Our Pensacola area condo market has seen prices hit bottom and begin to rebound. With interest rates on the rise buyers should be out looking for their condo purchase now!
That’s a pretty substantial dip year over year (but obviously taking into account that there was a mass rush of sales to take advantage of the tax rebate last year). What’s your impression of 2011 for the Seattle market?
@Alex – I suspect it’ll be a continuation of 2010…I think we do have some ways to go before the market recovers. Although, we’re having a fairly busy December.
Those stats aren’t pretty. Hearing that other real estate markets in the US are recognized as being at the bottom, and there’s reason for optimism going forward. With an eye on the future, the current situation presents opportunity.
What really stands out to me is the dramatic price increase in downtown Seattle. My assumption is because it’s close to business and amenities…or is it something else?