January Seattle Market Summary -
Nationally, an average rate of 3.25% this time last year, is now locking at 6.9%. Whereas Seattle, with higher average home values and a larger share of jumbo loans, we’re currently seeing rates that are averaging around 5.7% with 20% down payment and a good credit score. Market-wide, we’re starting to see year-over-year appreciation in some neighborhoods, even as overall volumes in Seattle have slowed.
Market Summary
Nationally, an average rate of 3.25% this time last year, is now locking at 6.9%. Whereas Seattle, with higher average home values and a larger share of jumbo loans, we’re currently seeing rates that are averaging around 5.7% with 20% down payment and a good credit score. Market-wide, we’re starting to see year-over-year appreciation in some neighborhoods, even as overall volumes in Seattle have slowed.
Overall Home Sales Volumes
The total volume of Seattle homes sold a year ago during the month of January (2022) was 661 units, While January of 2023 (last month) we saw a significant reduction in volume to 380 units sold city wide. This represents just a 43% decline in sales volume year over year. Seattle prices have remained relatively strong, with the average price of a sold home for January 2022 coming in at $916,148 and an average cost per square foot of $536. Last month’s data, for year-over-year comparison, showed January of 2023 average sold prices climb to $987,402 with a cost per square foot growing to $579. Closed Sales This Month- New Construction Homes
Median Sales Price This Month- New Construction Homes
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Alchemy Index
6
Index Overview
We’re pinning our Seattle real estate market index at 6 as of January 1, 2023 as inventories are tight, and days on market are creeping down at an average of 18. Homes are selling for an average of 97% of asking prices. Rates are higher than a year ago, but there are still plenty of buyers looking to potentially benefit from year over year appreciation with a property purchase. These data indicate a tip toward a buyer’s market.
Market Outlook
The recent positive surprise from the jobs reports means that despite layoffs starting in the tech sector, and a projected light recession, the economy is still HOT. While that is great news generally, the feds see this as inflationary and will no doubt continue to raise rates to tamp down any potential uptick in inflation. With mortgage rates holding in the high 5 to low 6% ranges, and many neighborhoods in Seattle still seeing year over year growth, some economists put us at or near the bottom of the price drops. Though nobody has a crystal ball, by most estimates, additional price depreciation will be short lived, and likely not more than a few percentage points.
