January 2023 in Review
We like to keep these reports simple and brief. Saying that with a smile!
This month we’re taking a slice of the markets… $1M to $1.5M. Each month we’ll mix it up to help you see all different price points.
Our goal is to give you a quick snapshot of the Seattle and Eastside residential real estate markets, and help you interpret the health/fitness of the market for yourself.
Think of it as a quick check of the market’s vital statistics…Pulse and Pressure.
- How many homes/condos are available (Active) to buy?
- How many of these homes/condos are selling real-time (PEND)?
- How fast are they selling (Avg. DOM)?
- Are they selling at a discount or premium (SP%/OLP)?
Pulse… Speed of the market is really shown by PEND Avg. DOM (Average Days on the Market… before buyer and seller agree to all terms, which moves the status to PEND).
Pressure…is really a mix of:
- – How many (Active) homes are on the market?
- – How many of those are going “PEND” (Pending) within a given timeframe?
- – What percentage of listing price are homes selling for (SP%/OLP)?
It’s easy to get overly overwhelmed with all the numbers staring at you…. but take a deep breath and know it’s very simple.
As tools… here’s how they help you interpret the market:
PULSE:
The lower the PEND Avg. DOM, the faster the pulse of the market. (e.g., an Avg. DOM of 5 means the average of all PEND homes moved from Active to PEND in 5 days)
PRESSURE:
The higher the PEND to ACTIVE ratio… the more (real-time) Demand there is in the market. (e.g., 50% would indicate half of the available inventory is selling within a certain timeframe…typically measured by month)
Sellers typically feel pressured to get listed/sold into the heat of the market and accordingly are expecting higher sale prices in less time.
This pressures Buyers to compete: offering higher prices and fewer contingencies.
Ultimately, the higher the SP%/OLP (Final Sale Price percentage to Original Listing Price), the more market steam, meaning market pressure. (e.g., An Average SP%/OLP of 110%, would mean on average homes are selling for 10% over asking price.) (e.g., An Average SP%/OLP of 95%, would mean on average homes were selling for 5% below asking price)
For our clients, we’re tracking all of these metrics for their particular buying or selling interests, and updating them for their particular price ranges and areas they are shopping or selling. This prepares them to be as competitive as possible and to set appropriate expectations.
As Guides to Urban Living, we look forward to the opportunity to help you, guide you and support you in your home buying and selling needs.
We provide free consultations, and we welcome your call, text or email anytime. Text always gets the fastest response.
Help us understand your home buying or selling goals, visions and needs. We’ll educate you on the current market as well as the near term future markets, and guide your path to a successful home-purchase and or home-sale in the Seattle and Eastside residential real estate markets.
LEGEND:
SFH = Single Family Home
Condo = Condominium units
PEND = Pendings (initiated when Buyer/s and Seller/s have agreed to all terms in Agreement)
– Real-time indicator of Buyer Demand
Avg. DOM: Average Days on Market
– Best measure of the pace of the market
Avg. Sold $: Average Sold Price
SP%/OLP: Final Sale Price percentage to Original Listing Price
– Best measure of “competitiveness” (heat) of the market
Seattle Core Metro: West Seattle + Downtown Seattle north to 145th, Puget Sound shoreline to Lake WA shoreline
Eastside Core: (Bellevue, Kirkland, Redmond, Woodinville, Sammamish, Issaquah)
