Last 2 Weeks, 33% Of Downtown Seattle Condos Reduced Their Price
Remember our post a few weeks ago about buying a Seattle condo? It was titled, Seattle Condo Buyers, Now Is Your Time. Well, I wanted to cover this same exact topic once again. There are now 145 units on the market in Downtown Seattle. Of the 145 units, 30 of them are new and 115 of those units have been waiting for buyers. Of the 115 units that have been on the market, 33% of those condos just reduced their price. What does this tell you about the market? As inventory climbs, new projects are announced and we head into what feels like a cyclical shift in the market – you have this perfect opportunity to enter the market and make a great purchase.
For 2-3 years, the market was solely in the hands of a seller. In fact, just 8 months ago, I posted about the severe shortage in condos listed under $500,000. At that time, Seattle had just 5 condos priced under $500k. Now, as of today, the number of units under $500k has moved up 260% (5 units to 18 units). This creates a huge opportunity to negotiate. Something that hasn’t been done in years as a buyer.
Here is a list of all of the Downtown Seattle condos listed under $500,000.
Days On Market
Days on market is an important market indicator that I love to follow. It is exactly as it sounds – how long does it take a sample of condos to sell during a 30 day period. In June of this year the time it took a condo to find a buyer was 25 days. This number is super correlated with the number of units for sale. As we see Seattle condo inventory rise, I think we will certainly see longer market times. Stay tuned.
List To Sale Price Ratio
I love following this number to see the sales velocity and multiple offer interest. As price reductions increase, the percentage of list to sale price ratio will decrease. As an example, in April of this year sellers were getting 4.4% of their asking price. So if a place was listed at $1,000,000, the buyers were on average, bidding that property up, to a sales price to $1,044,000.
However, just 3 months later in June the number has declined to 98.8%. Reflecting a decrease in list to sale price ratio. This is important to watch. I’ll keep you guys in the loop.
Here are the 3 takeaways:
- 33% of condos in July have reduced their price
- Affordable condos have made a move in the buyers favor
- Multiple offer interest is cooling and this creates a better situation for Seattle Condo buyers.
Have questions, as always, don’t be afraid to ask!