January 2018 Seattle Condo Market Update
Seattle’s condo market started 2018 strong with increased sales activity and values. The citywide condominium median sales price rose 8.07% year-over-year to $475,000. While that is a bit of a let down after December’s all-time record high we will see that rise throughout the coming year.
With the exception of Northeast Seattle, all areas of the city realized year-over-year improvement to median sales prices. Queen Anne, Northwest and West Seattle all clocked in double-digit increases last month (see table at bottom of post).
Surprisingly the number of active Seattle condo listings for sale improved over last January, though not by much, to 134 units. Yet, a nice 54% bump over December.
The inventory supply rate remained unchanged at 0.8-months of supply. This means at the rate of sales to current active listings, it will take less then a month to sell out of inventory if no new listings come on the market.
The supply rate is a metric to determine housing market conditions. A rate of 3 months or less is a sellers market, while a rate over 6 months is a buyer’s market. A balanced, or normal market, would have a supply rate between 3-6 months…a situation Seattle has not experienced since 2011. This year will mark the 7th consecutive year of a sellers market.
Pending sales transactions (listing with accepted offers) rose in January by 4.7% to 177 units compared to last January. While we expect sales to continue as we head into the peak spring season, it will be a bit more subdued than in the past mostly to do the limited new condominium inventory coming online this year.
The number of closed sales reduced 28.2% to 102 units compared the same period last year. Fortunately, condo closings will increase as we progress through the year.
Going forward, it will likely be a tougher market for buyers this year. We anticipate approximately 150 new condo units being completed in 2018 so we’ll mostly will rely on resale inventory. The possibility of rising mortgage interests will be a factor as well.
Sellers will remain in the driver’s seat with a competitive marketplace and rising values.
If you’re a owner, the ongoing market conditions and buyer demand presents a terrific opportunity to sell your Seattle condo. Want to know what your condo is worth or how we can get you top dollar?
If you’re a buyer, let us help you navigate through Seattle’s crazy housing market with our effective buyer strategies.
Source: NWMLS. Some figures were independently compiled by SeattleCondosAndLofts.com and were not published by the Northwest Multiple Listing Service.
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