What Gives? Transactions Plummet, Prices Increase

By
Real Estate Broker/Owner with Ewing and Clark

Transactions Plummet

Transactions across the Northwest Multiple Listing Service, the largest in Washington State, that includes Seattle real estate has seen the number of transactions drop significantly.  Real estate deals are down 18% from a year ago and 47% from two years ago.  Sales were unusually strong in the month of October in 2020 (10,806 sales) and 2021 (9,983 sales), but sales in 2018 (8,005) and 2019 (8,335) were both over 8,000 transactions.  The last two Octobers, sales have dropped significantly.  October 2022 there were 6,464 sales and this October there were 5,291.  

Interest Rates

Interest rates are causing supply and demand to both decrease.  30 year mortgage rates at the end of October neared 8%.  86% of current Washington homeowners have mortgages with interest rates with 5% or less and more than a quarter have rates of 3% or lower.  Thus, the would-be sellers are thinking long and hard before moving which reduces supply  On the other side of the coin, homebuyers are being discouraged to enter the market since high interest rates give them less buying power.  Thus, demand is not what it normally would be.

End Result, Prices Rise

Inventory has been low for several years now.  With this new set of circumstances, inventory remains low.  The market is deemed to be an even market when there is between 3-4 months, a seller's market when less and a buyers market when more.  Across the NWMLS there is 2.2 months of inventory; therefore, prices increased over last year ever so slightly.  Median price was $602,000 this October compared to $595,000 in October 2022.

Learn More!

Click the link to learn more about the Seattle real estate market!  The monthly reports have more specific numbers regarding both Seattle home and Seattle condo market. Or click here to contact a Seattle real estate broker to discuss the market.    

Feature Picture:  Close to Seattle' Madison Park area, this Washington Park home features sweeping views of Lake Washington and the Cascades Mountains beyond.

Comments (4)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Cycles will be what they will be about. It’s important for us to step back and think of strategy and what can be done rather than what cannot

Nov 07, 2023 08:20 PM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Thanks for sharing market state on real estate, Casey. Its the same here in Ohio.

Inventory has been low for several years now.  With this new set of circumstances, inventory remains low.  The market is deemed to be an even market when there is between 3-4 months, a seller's market when less and a buyers market when more

 

Nov 08, 2023 03:38 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning J. Casey. Supply and demand coupled with interest rates alter the thinking of buyers and sellers. For agents, they have to know inventory better and prospect more for their share of the pie. Good luck. Enjoy your day.

Nov 08, 2023 04:29 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Welcome to the Rain. Enjoyed your blog page, and I added you as a follower. I would love the follow back. Also, then we both get 50 points. Bill

Nov 08, 2023 10:24 AM