We thought we would take a look at some numbers this morning. The recent sales results in Downtown Seattle shows a significant increase in pricing. Last Friday the Seattle Times reported that in downtown Seattle, the median condo price in October was $539,000, 35 percent higher than a year ago. If you read our recent post on the October condo sales, the price per unit is up 37% from last year.
We thought we would take a look at one of the City’s most active category, condos priced below $500,000.
There are currently just 21 condos for sale in Downtown Seattle priced below $500,000. The average market time of those units is currently 35 days. There have been 16 sales in the last 30 days (priced below $500,000). So lets use the absorption rate to determine how many months of inventory we have.
The math is pretty simple. In the last 6 months, there have been 194 condo sales priced at or below $500,000. The is 32 sales per month on average. When we divide the number of available units (21), by the average sales per month (32), we find that Downtown Seattle is currently operating with less than a month of available inventory or (.66%) to be exact. In most normal markets, we would see a 2-3 months supply of available units.
So lets put this in perspective – what does it really mean. Quite simply, we are in a seller’s market. Over the last 6 months, the average market time that a seller’s condo would be on the market was 29 days. That is trending down. When you pull the sales in the 30 days, the average market time was just 25 days. This is a sellers dream.
Here are a few units that sold for more than the asking price in the last 30 days.