Seattle Housing Market Update - April 2023
Alchemy Index- April 2023
Seattle Housing Market Report: April 2023 Insights and the Mt. Baker Neighborhood Highlight
Welcome to the latest update from Alchemy Real Estate, your trusted partner in navigating Seattle's real estate market. In April 2023, the Seattle housing market showcased interesting trends and developments. Additionally, we want to highlight the vibrant Mt. Baker neighborhood, known for its urban oasis appeal and steady growth. Let's dive into the key findings from April and explore the charm of Mt. Baker.
Seattle Housing Market Overview
The month of April 2023 saw a total of 518 units sold in the Seattle housing market, representing a nearly 1% increase in volume from the previous month. However, there was a significant -33% decline in overall home sales volume compared to April 2022. Despite this, the average home price in Seattle rose to $872,500, reflecting a 2.5% increase from the previous month's average. The average cost per square foot also experienced an upward trend, reaching $547.
New Construction Market Insights
As a boutique new construction real estate company, Alchemy Real Estate specializes in delivering quality homes. In April 2023, the new construction market demonstrated its strength with 117 new single-family homes sold, surpassing the 88 townhome sales. This indicates a continued demand for newly built properties.
Days on Market
The average days on market for single-family homes decreased to 15 days in April 2023, down 9 days from the previous month's average of 24 days. On the other hand, townhomes spent an average of 20 days on the market, increasing by 4 days from the previous month's average of 16 days. These figures showcase the increased competitiveness in the single-family home market and the need for timely decision-making.
Alchemy Index and Market Performance
Based on these observations, we are pinning the market performance index, also known as the Alchemy Index, at a value of 6 for the performance of the Seattle housing market. The tightening inventory continues to limit buyer options, leading to a more constrained market. The townhome market has slowed down, while the single-family home market has experienced significant growth. Seattle homes are consistently selling for over 100% of the asking price, sometimes even surpassing the list price.
Finance Market Outlook
In terms of the finance market outlook for homebuying, rates have flattened out, consistently hovering in the mid to upper 6% range. This indicates a relatively stable period for financing opportunities. Short-term buy-downs, such as 2:1 buydowns, remain favorable for keeping rates low. Factors like a return to in-person work and overall economic growth could further strengthen the local market.
Highlight: Mt. Baker Neighborhood
Nestled between the central district and beacon valley, the Mt. Baker neighborhood stands out as a lush urban retreat within Seattle. With a 12% population growth over the past 10 years, Mt. Baker consistently ranks among the top ten neighborhoods in the city. In April 2023, 13 homes were sold in this vibrant neighborhood, accounting for 2.5% of the total Seattle market volume. The homes spent an average of 8 days on the market, which is 10% below the MLS average for Seattle. The median sold price in Mt. Baker was $870,000, slightly below the Seattle average.
April 2023 provided valuable insights into the Seattle housing market, with promising developments and noteworthy trends. Alchemy Real Estate remains committed to guiding you through the ever-evolving real estate landscape. We encourage you to explore the Mt. Baker neighborhood, which offers an idyllic blend of urban living and natural beauty. Stay tuned for