Seattle Condo Market Update July 2021
The mid-year summer condo sales plateau arrived on schedule in July; sales slowly marginally, selling prices remained buoyant and inventory ticked up slightly.
Overall, the Seattle citywide condo median sales price dipped ever so slightly by 1% year-over-year (YOY), and 1.5% month-over-month, to $492,500.
By MLS neighborhood, Queen Anne and north Seattle realized YOY improvements in sale prices with the Ballard area realizing a 28% YOY gain. On the other hand, the remainder of the city exhibited declines as noted in the table at the bottom of the post.
The Ballard area jump is partly appreciation, but also a result of a greater number of higher valued properties selling this year compared to 2020. Last July only 22% of the condos sold were over $500,000 versus 51% this year, which shifted the median price point upward.
The number of active Seattle MLS listed condos for sale ticked up over the prior month by 3% to 576 units, though that was 22.3% fewer than we had a year ago.
However, that is based on the NWMLS database of listed condominium units, which does not account for the actual number of units available at recently completed condo developments. New condo developments only list a handful of units for sale in the NWMLS, thus skewing true inventory figures. When adding in move-in ready properties, we’ll exceed 2020 levels.
The resale inventory remains fairly steady.
The inventory supply rate inched up slightly to 1.6-months of supply based on pending sale transactions, exhibiting seller market conditions. Again, the true supply rate would be higher when contemplating unlisted recently completed condo units, but it wouldn’t alter the state of the market place.
The inventory supply rate is a metric used to identify the current market environment. A supply rate of less than 4-months is characterized as a seller’s market, 4 to 6-months a balanced market, and a rate greater than 6-months would be a buyer’s market.
North Seattle neighborhoods remains exceptionally tight, particularly Ballard where sales for the month exceeded new listings.
The number of pending Seattle condo sales transactions (properties under contract) rose comfortably by 18.5% YOY to 366 units, though 1.3% less than the prior month. Historically, sales would peak and then level out during the summer, but as noted in the graph below, condo sales have been trending downward since March.
The downtown and Queen Anne area showed strong sales volume in July compared to the same period last year.
There were 313 closed Seattle condo sales in July reflecting 31.5% YOY increase and a 9.5% one-month drop, respectively. With sales leveling due to the seasonality of the market, closings will begin trend downward as we close out the summer months.
A caveat with closed sales, which is along the lines with active listings, many new condominium unit sales have not been correctly reported to the NWMLS. I’m not sure why new developments are refusing to do so, but it does skew the condo sales figures as it under reports the number of actual closed units in the downtown area.
As we reach the peak of the summer, we’ll start to see the Seattle housing market cyclicly start to cool down and that should be the same this year. Amazon’s decision to extend their work-from-home option through 2022 could hamper downtown area condo sales during the second half of the year. New condos in the South Lake Union and Denny Triangle were hoping that employees returning to office would help spur additional sales.
For the immediate future, the Seattle condo market will continue on the same trajectory as it has been while adjusting for seasonal changes. Sales volume and inventory will remain relatively level until autumn/fall with prices fluctuating depending on neighborhood areas.
Several new condo buildings are eager to sell and are currently offering incentives such as buyer bonuses or pre-paid HOA dues to help entice buyers. If you’ve been contemplating a Seattle condo, let our condo specialists help you!
The market remains favorable for sellers, particularly in the north end where the market is very tight and competitive. Plus, there are only a few smaller developments in the pipleline up north. Downtown area sellers may face added competition from the new developments as well as the effects from the recently implemented Waterfront LID tax.
Source: Northwest Multiple Listing Service. Some figures were independently compiled by SeattleCondosAndLofts.com and were not published by the NWMLS.
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