This first graph represents the average price per SQFT of condos that actually sold. It does not include properties that were on the market and did not sell or are actively for sale.
There are a few interesting things to note about this graph. First, the average price per SQFT has not consistently risen over the last three years. Over the course of time from June 2015 to June 2018 the average value of condos sold has risen from about $319/SQFT to roughly $450/SQFT but there were dips along the way.
Second, the peak of this year was February 2018. Over the course of the last few years condo values seem to peak in the later summer months. It'll be interesting to see where the July and August numbers come in at since sales are slowing down. Are we starting to see a cooling off or balancing of the real estate market?
The price that a seller lists their home for and what they actually sell it for can be two different things. Often people check out the asking price of their neighbors home, but never really follow up on what it truly sold for. Did the neighbor actually get their asking price?
Over the last three years we have heard stories of multiple offers and wild price escalations well over the seller's asking price. While this was true and did happen, it was far from the norm.
This graph displays the average difference between a Seller's original listing price and what condos in West Seattle really sold for. On the graph, a mark of 100 is the baseline; the original asking price. For example in May 2018 the average condo sold for 105% of the original listing price. On a $500,000 condo this would be $20,000 over the original asking price.
The amount of condo units available for purchase will have a big impact on current Seattle real estate prices. It is a simple problem of supply and demand. When there are few homes available and also steady or growing demand, prices will ultimate push up until demand slows. If the inventory increases and demand for those condos fall, so will prices.
A healthy real estate market is considered to a 4-6 month supply of homes. This means that if no new homes came on the market it would take 4-6 months for the current condos available to sell with the current rate of buyer demand. The months of inventory has been extremely low compared to the demand. In many cases over the last three years the inventory level has dropped below a one month supply. This off-balance is called a Seller's Market. It heavily favors the seller in a negotiation because the seller has something rare that many people want. If the supply was greater than six months, then it would be a Buyer's Market. Years 2008-2014 were Buyer Market years.
We are starting to see a increase in housing availability at a time that has had very low inventory over the last three years.
Use this quick home valuation estimate tool to instantly get an idea of your home's current market value. This powerful tool pulls from the sales data of recently sold homes in your neighborhood to establish a general market value for home.