Welcome to Friday everyone! This week I am bringing back a “Top Ten” list of what I’m seeing + hearing in our local real estate market. The theme this week is to set expectations, re-set expectations and yes, continue to set expectations each week with your clients. There are subtleties right now to our market that will be helpful to share in order to help our clients pivot at each step and find success. The complete recap of our May 2018 can be found here.
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Our most dynamic office meetings continue to be those to which we dive even deeper into these Top Ten list soundbites and what you’ve noticed. Continue to bring your stories, discover the weekly pulse and we’ll all benefit. The education we bring collectively to the market is a point of difference that sets us and you apart.
Interesting times in real estate in Seattle. This week’s Top Ten represents data thru May 2018 for all of Metro Seattle [Residential and Condominiums].
1. Is the market shifting? It is too early to call and the Seattle real estate statistics show demand still far exceeding supply, however still low, there has been a significant increase in inventory.
2. Number of properties for sale is increasing. It’s all the buzz – everyone can tell with more signs in the yards! Real estate is a social conversation. Heading into summer you’ll be asked plenty, “how is the market?” How you respond in those first 30 seconds will put you in a trusted expert category or not. Hint hint: my favorite response [very Socratic] – “good question, which market specifically?” This gets them talking and you have a chance to pick up on the subtle in why they are asking = allowing for you to better answer the question. Hint hint in what not to say: “I’m so busy!“
3. Seattle had 936 active properties for sale and was the highest number in the past 23 months or since June 2016.
4. Active inventory is up 268 properties or 40% compared to a year ago (May 2018 = 936 vs May 2017 = 668)
5. The increased inventory means Sellers and listing brokers will need to consider active competition. It’s been a long while since active competition was a true talking point when sharing a market analysis. Sellers need to understand what this means to them – an important subtlety to their strategic plan.
6. Condition, marketing and pricing will be more important with rising inventory.
7. Statistics continue to indicate more demand than supply: Less than one month’s supply of inventory. 0.8 May 2018 vs 0.5 May 2017 vs 0.6 May 2016 vs 0.7 May 2015.
8. Sales prices on closed May sales are up 17% to $759,000 vs $650,000 May 2017. With the market shifting with increased competition it doesn’t mean prices are going down. What it does mean is that the rate to which prices may increase in the near future may slow down. Time will tell however our vernacular here in talking with clients is crucial.
9. 59% of houses sold over list price compared to 66% in April 2018 and 67% in May 2017. Stating the obvious here – that means 41% of houses did not sell over list price! See where I’m going with this? Selling at list price, below list price and selling with a price adjustment is alive and well in our market.
10. Brokers may need to re-set expectations in addressing market time and strategy if they have been working with Sellers for awhile in getting ready to bring their home to market. Educate, educate, educate = success for all.
Stay curious my friends and have a fantastic Father’s Day weekend in productive work + play!
Laura Smith, Co-owner | Windermere Real Estate Co.
Ballard + Eastlake + Madison Park + Northgate + Sand Point + Wedgwood