Seattle Condo Sales Jump In August
Lets not sugarcoat the status of the Downtown Seattle condo market – it is absolutely bonkers. As good as it was in July for sellers, August is setting a new bar.
In August, there were 25% more sales in the Downtown Seattle condo market than in July. This is a big jump in the number of transactions. That wasn’t the only statistic that caught our attention. In August of last year (2016) the average list to sale price ratio was 100.35%. That number has grown to 105.50% showing the strength in the market and the willingness for buyers to pay above market value. So where are we headed?
I can’t help but notice the conversations around the housing market right now. Everyone is looking to predict the next bubble and it seems as though your average Seattleite has become an economist :-). All joking aside, it is very difficult to predict when the winds will shift in the real estate market. Real estate has always been very hyper-local. Supply and demand is a common theme that we need to lean on that to establish a baseline for change. Let me set the stage for this debate……
Right now (as of this morning), there are just 52 condos in area 701 (Downtown Seattle) for sale.
- 24 0f the 52 units for sale are new construction
- 33 of the units for sale are over $1,000,000
- Only 19 condos for sale under $1m
- 46% of condos for sale are not expected to deliver until 2018/2019
So, when you consider that there were 55 sales in August and only 52 condos available for sale, that means that Seattle has less than 1 months of inventory. In a normal market you would see 3-4 months of inventory.
So, are we headed for a correction or will this market continue?
Truth be told, there are a number of variables…..
We can’t predict how the weather, terrorism or global politics could alter our strong housing growth. What we can lean on, is how our local market is looking from a supply and demand perspective. As of right now, on the 6th of September, I just can’t see why the market would slow down unless there is a significant change at Amazon, an interest rate bubble, a stock market crash or an act of terrorism.
What are you thoughts?
Traditional Units For Sale
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