Real Estate News & Seattle Real Estate News Why Has Seattle’s Real Estate Market Cooled? (& No, We’re Not Doomed!)
- Matt Miner,
- September 25, 2018
Beginning in May 2018, we noticed Seattle’s real estate market begin to shift. Homes started taking longer to sell, and once we reached August, people actually had to start reducing the prices of listed homes.
In this Curbed article published on August 27, 2018, the author points out that “While lowering an asking price isn’t totally uncommon, the percentage of listings cutting their prices has nearly doubled since last year in the Seattle metro area.” According to this Seattle Times’ article published on September 7, 2018, “median home prices across King County fell $30,000 in August from the month prior, the third straight month of declines.”
We’ve said it before: in our view, the market is just correcting. Seattle’s prices were too low for awhile (based on how much income was increasing), and we’ve finally caught up.
And anyway, we don’t happen to think the market cooling is a trend that’s going to continue. There are a few big factors as to why the market has cooled down, and we think the biggest reason has to do with how people are feeling.
Yes, seriously. Based on the numbers alone, there is no economic reason in Seattle as to why a slowdown should be happening right now. Seattle’s wealth is actually condensing and income is going up, and the median income for a family in Seattle is currently $161,000. Ultimately, we believe that numerical data and overall economic trends will prevail.
Here are what we believe the biggest reasons are for the market slowdown:
September’s real estate market in Seattle has been unusually slow this year, and every year, you can definitely expect things to slow down after October 15th or so. We think that the market will pick back up again in 2019… Maybe not with the same vigor but pricing should continue climbing and inventory will be absorbed. Another reason why it’s a great time to buy right now!
If you’ve been waiting to buy a home in Seattle, now might be your chance. Inventory is up, prices are adjusting for the slowdown, and you don’t have as much competition. You can even get a loan with a zero downpayment (yes, you read that right!) since you don’t have to worry about being as competitive. Click here to read more about different loan types!
Have a question about when you should buy or sell? Our team is always happy to chat and help you strategize. Get in touch here!