March 2018 Seattle Condo Market Update
Spring has sprung in Seattle’s condominium market with values and closed sales outpacing March of last year.
The citywide condominium median sales price rose 21.53% year-over-year to $527,450, which was down 1.4% from the all-time high set just last month. Most neighborhood exhibited increased median sales prices, many by double-digits, with the exception of West Seattle, which saw a 3.6% decline (see table at bottom of post).
While rising values may dampen some buyers’ outlook, one encouraging market factor is the number of active Seattle condo listings for sale, which rose to 186 units, reflecting a 12% year-over-year and 13.4% one-month increase, respectively.
Even with more condos for sale, however, the inventory supply rate remained unchanged at 0.7-months as sales activity also improved.
The supply rate, based on pending sales transactions, identifies the current housing market environment. A supply rate of less than 3 months of supply is indicative of a seller’s market. Between 4-6 months is considered a normal market while more than 6 months would be a buyer’s market.
The last time Seattle buyers experienced a buyer’s or even a normal market condition was back in 2011. As long as our economy remains strong, and until there is legislative changes to the Washington Condominium Act, we’ll remain in a seller’s market for the foreseeable future.
The number of condos under contract (pending sales transactions) improved 16.1% over February as we’d expect with spring, but it also reflected a decrease of 7.5% compared to last March. Although sales have seasonally increased the market is under-performing relative to the same period last year.
The number of closed Seattle condo sales rose 8.2% year-over-year, and 50.6% more than the prior month, to 238 units. That number, however, included 50 new construction units that closed at the just completed Gridiron Condominium in Pioneer Square.
Excluding new construction, the number of closed resale condo units exhibited a year-over-year dip of 14.5% and a smaller one-month increase of 19%.
As we continue through spring into summer, the market will pick-up and will provide Seattle condo buyers with more options, though with increased competition and higher prices.
On the other side of the fence, Seattle condo sellers can continue to reap the benefits of the tight market place. And, contemplating the average 18% increase in property taxes this year, it could be just the time to sell.
Source: NWMLS. Some figures were independently compiled by SeattleCondosAndLofts.com and were not published by the Northwest Multiple Listing Service.
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