Market Trends From Around The Sound: Q4-2023
The final quarter of 2023 was marked by resilience in the Seattle area market, as it navigated through ongoing challenges. However, the market is already showing signs of improvement, with an increase in activity.
Despite facing hurdles such as peaking mortgage rates in October, the market has started to rebound. Sellers, initially hesitant to list their homes due to concerns about losing lower interest rates, are now finding renewed confidence in the market as sales begin to pick up. Additionally, buyers who persevered through the high rates and limited inventory are now benefiting from reduced competition and increased negotiation power.
As we transition into 2024, the Seattle area market, including Bainbridge Island is anticipated to see further improvement. With projected decreases in mortgage rates, the market is expected to thaw, offering more opportunities for both buyers and sellers. The positive momentum in pending sales signals a promising start to the year in the Seattle real estate market, providing optimism for a more active and vibrant market in the coming months.
See how your neighborhood performed.
Seattle | Single-Family Homes
Sellers participating in the Seattle market in the fourth quarter of the year saw similar sales prices to those who sold in Q4-2022, with a median sales price of $918,000 and an average price per square foot of $538 in 2023’s fourth quarter.
Bainbridge Island | Single-Family Home
Bainbridge Island remains one of the region’s most desirable enclaves even amidst a slow market challenged by a lack of activity and inventory. Despite the market's sluggish pace, buyers are still drawn to the island's allure, leading to a notable year-over-year increase in the median sales price of 19.42%, which now stands at $1,433,000 compared to Q4-2022’s median of $1,200,000.
Eastside | Single-Family Homes
Buyers seeking Eastside homes in late 2023 faced low inventory at 0.8 months, the second lowest among neighborhoods analyzed, down from 1.4 months in Q4-2022.
Mercer Island | Single-Family Homes
In the last quarter of 2023, Mercer Island's real estate market saw interesting changes. Home sales went up by 12.12% compared to the same period in 2022, with 33 homes sold in Q4-2022 and 37 homes in Q4-2023. However, the number of homes available for sale dropped by 60%, from 30 in Q4-2022 to just 12 in Q4-2023. This situation of increased sales and reduced inventory highlights a changing market in Mercer Island, prompting a closer look at the factors driving these trends.
Seattle | Condominiums
There were very few new construction condominium opportunities offered in the Seattle market in 2023, similar to 2022. This subset of the city’s market saw little year-over-year change, indicating a continued trend of limited availability in new condo developments. The scarcity of new construction options has persisted, posing challenges for potential buyers seeking modern living spaces in this bustling urban environment.
When you are prepared to take the next step in 2024 or have questions, don't hesitate to contact me, as your trusted advisor from Realogics Sotheby's International Realty. Together, we can strategize and work towards achieving your real estate goals in this dynamic environment. Choosing a professional real estate broker with superior marketing, property presentation, and negotiation skills is essential in this market. As a knowledgeable Realogics Sotheby’s International Realty broker, I am here to help you navigate the ever-changing market, ensuring you make the best decision for your investment, lifestyle, and home.
Whether selling or buying, I'd love to guide you through your next real estate journey. Reach out today!