The volume of single-family home sales increased monumentally to 8,070 homes sold in 2013 from 6,864 (2012) and 5,714 (2011). That’s an 18% increase in sales volume. Worthy of mention was a 62% increase in the number of sales in the $1,000,000 and above price bracket–496 in 2013 compared to 306 in 2012. The median price for a single-family home was up 11% over 2012, increasing to $446,000. Coming on the tail of strong performance in 2012, this makes 2013 a solid growth trend year.
Historically low interest rates provided much of the stimulus for our real estate market, supported by improved local, regional, and national economies. Rates started the year very low and rose throughout 2013, ending at 4.6% in December. As every 1% increase in interest rates leads to a corresponding 10% decrease in purchasing power, it will be interesting to see how the interest rates of 2014 impact our market in the coming year.
Very high absorption rates–the percentages of homes that go under contract as compared to all available homes for sale–continue to dominate the Seattle market. A “balanced” market allows for 4-5 months of inventory; in 2013 we saw a strong seller’s market, with less than two months of inventory available in most price points.
Activity in the Seattle condominium market increased 20% in 2013, with 2,731 sales compared to 2,278 in 2012. The median price increased 8% to $270,000.
Average market time fell from 60 to 34 days for single-family homes and from 103 to 63 days for condominiums and townhomes. Highly desirable properties received offers–and often, multiple offers–within 7 days of coming to market.
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© Copyright 2014, Windermere Real Estate/Mercer Island. Statistics provided by the Northwest Multiple Listing service and deemed accurate but not guaranteed.