While Q3’s summertime market slowed a bit from the frenetic spring pace of Q2 (we call this the “Summer Slump”), median home values are up across the region compared to this time last year. Most homes still sold at or above their listed prices in the first 10 days on market. However, buyers had more choice with higher inventory levels AND some room to negotiate on price for those homes that stayed on the market past the 10-day mark.
What does this mean for the rest of 2024? We typically see buyer activity decrease as we head into the holidays, and of course, it’s also election season. If you’ve been considering a purchase and are of the mindset that you don’t want to compete, THIS IS YOUR MARKET! For sellers the average days on market in Q3 was 20 for Seattle and 18 for the Eastside. Which means: if your price didn’t attract a buyer in the first two weeks, it’s probably time to re-evaluate. Interest rates are better than they’ve been since mid 2022. Quality inventory is being presented to the market. If you see a great house, be prepared to move quickly. Opportunity Knocks.
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Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
Lots of good news in Seattle during our post-summer glow. Prices are up year over year by 5% to $937,000. While we’re still under the peak median of $1,000,000 set in Q2 of 2022 and $970,000 from last quarter, this is typical for Q3. We’ve seen it every year from Q2 to Q3 going back to 2018 (except in 2020 largely because the real estate market shut down completely in Q2 due to the pandemic). Buyers had lots of choice, with more inventory to end the quarter than we’ve had since Q3 of 2022. Even with these buyer bright spots, we still saw 56% of homes sell in the first 10 days and 34% over the asking price.
Average price per square foot and median price were in positive territory across the board this quarter in all neighborhoods. Richmond Beach/Shoreline and Madison Park/Capitol Hill both saw larger than typical gains in $/sq.ft. (11%) and median price (10%) respectively. North Seattle appeared to be the “hottest” market around with 64% of homes selling in the first 10 days. Again, really great numbers in Seattle given that Summer Slump was in full effect.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
The Eastside continues to be the region’s crown jewel of real estate. Median prices are up again year over year by 8%. Most of us felt the market trends typical of a Summer Slump, and the numbers confirmed this. Prices (median) AND transactions were down 6% overall when compared to Q2 of 2024. That’s a $100,000 dip in median sales price if you missed the spring market. This is absolutely typical for the PNW and Metro King County. Seasonally our peak seasons are spring and post Labor Day/pre-holiday. This year that may be disrupted by election distractions. Time will tell if it’s a market lacking in consumer confidence or simply existential distraction.
The micro markets across the Eastside are fairly homogeneous. Among the 8 neighborhoods that we track, the median price swing was 3-11% but all in a positive direction. Total transaction volume is up 18% signaling that eventually life changes will trump a 2.5% interest rate. While homes were mostly selling in the first 10 days, multiple offers/paying over asking price were not the norm. In fact, the split between home selling at, above, and below list price was relatively even.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Fall has come for Mercer Island. The summer construction on Island Crest is done, school buses are out en force, and those filtered views that only come out in winter are starting to show. It’s time to look back fondly at the summer real estate market: prices are up YOY by 3% to $2,440,000 to end the quarter. This is likely more about trailing gains from a robust spring than it is about actual gains from Q3, given the indicators. A whopping 40% of homes sold under list price. Forty percent of homes took longer than 10 days to sell (not necessarily the same 40%) but only for about a 2% discount. This suggests that seller pricing and buyer motivation are evenly matched. There were 50 active listings at end of quarter, the most since Q2 of 2020 when real estate shut down completely.
Focusing on neighborhoods, all properties that closed in Q3 in The Lakes, Mercerwood, Mercerdale, and Mercer Island Estates, sold in the first 10 days on market for an average of 102% of sales price. This goes to show that in any market, despite overall conditions, there will always be “hot homes.” Mid-Island had the most overall activity with 22 of the 68 sales across the Island. These occurred at $865/foot and 16 of the 22 homes sold in the first 10 days for at or above list price.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Once again, we’re rooting for the Seattle condo market as it proves to be the little engine that could! Chugging along toward modest price gains even when the rest of the market seems to be struggling a bit, Seattle condo prices have held steady for the last 6 quarters, with mostly positive change. Eastside condos hit a median price all-time high in Q2 at $709,000. We’re off of that a touch to $690,000 in Q3, to be expected after a beautiful summer. The Eastside ended the quarter with 29% more listings than this time last year and only 13% more sales. Mounting inventory tends to lead to price softening. Overall, nearly 50% of condos sold for at or above their list price!
When you compare the charts in the report, there is admittedly more positive news on the Eastside than in Seattle. Overall, we’re encouraged that despite many neighborhoods experiencing a drop in sales, average price per sq. ft. held flat and median price is up overall. On the Eastside, it’s still great news all around for the market, especially in West Bellevue with 26% median sales price gains and total sales up 55%.
Friendly PSA: PLEASE remember that there is a ‘first rung’ of the property ladder. CONDOS create an affordable option to start building wealth at a younger age. It’s an important real estate product that has been overlooked. We are hopeful that enterprising homeowners return to the condo market in droves this next real estate cycle.
Check out area-by-area details the full condo report.
WATERFRONT
While a bit slower compared to last quarter, waterfront sales remained strong in Q3 with 10 on the Eastside and 8 in Seattle. Lake Sammamish moderated in summer with just 5 sales compared to the crazy 15 we saw in spring, while Mercer Island stayed fairly steady with 4 (compared to 6 in spring). The highest sale was nearly $18 million for an immense Wendell Lovett designed 6,920 sq. ft. home on 125 feet of prime “gold coast” waterfront in Medina. The most modest sale was also on the Eastside – an original 1943 cottage on 53 feet of west-facing waterfront in Kennydale.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis – contact us if we can provide assistance!
© Copyright 2024, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and Trendgraphix, and deemed accurate but not guaranteed. Seattle cover photo courtesy of Kathryn Buchanan and Brandon Larson, Clarity Northwest Photography. Mercer Island cover photo courtesy of The Sirianni Group and Clarity Northwest Photography. Condo cover photo courtesy of Julie Wilson and Bobby Erdt, Clarity Northwest Photography. Waterfront cover photo courtesy of Anni Zilz and Andrew Webb, Clarity Northwest Photography.
