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The volume of Q3 transactions made up for Q2’s fewer sales and then some. Truth be told, the market could have absorbed twice the number of transactions, if only there were more homes on the market to sell. Too few homes for sale is the defining character of the Q3 Seattle region real estate market as evidenced by multiple offer bidding wars being the norm rather than the exception. Nearly 66% of all homes sold went under contract in the first 10 days on the market at an average of 103% of their listed price in Seattle and 105% of that price on the Eastside.
As predicted by Windermere’s chief economist, Matthew Gardner, the second half of 2020 is indeed shaping up to be the brightest spot in our local economy. While consumer confidence continues to be challenged by local and national events—including COVID, unemployment, racial inequality, and uncertainty around the presidential election—the desire to secure the best home environment possible coupled with ridiculously low mortgage interest rates continue to fuel local buyer demand.
In addition to typical real estate activity, new and changing home needs (especially for those working virtually with children) have driven many to question the adequacy of their current living situation. This has added to the already significant buyer demand we are experiencing. For many, COVID has changed their perception of what is important. More buyers are reaching for their dream home or a second home in lieu of world travel and luxury goods.
As demand drives up local home prices further, affordability is quickly becoming one of the most prominent emerging concerns. Currently only a sliver of homes are considered affordable to first time buyers at their projected median income. Teachers, first responders, and critical infrastructure workers that keep our region going are finding it increasingly difficult to work in higher cost communities. Will our children be able to buy a home in the Seattle region? Not unless something changes to create lower cost housing options. One does not need a crystal ball to see that this problem will get worse when mortgage interest rates increase closer to their norms. Expect this issue to be at the center of any housing market discussion in years to come.
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Seattle | Eastside | Mercer Island | Condos | Waterfront
Seattle’s median sale price increased by 3% (to $800,000) over Q2 ($780,000) and by 7% over Q3 2019 ($749,000). Neighborhoods to the north experienced the largest increase in median sale price with Kenmore-Lake Forest Park (+10%) and Shoreline-Richmond Beach (+8%) over Q2. In addition, Queen Anne-Magnolia, North Seattle, Shoreline-Richmond Beach, and South Seattle all saw double-digit increases over Q3 of 2019.
71% of Seattle homes (all price points), and 18% of homes priced above $1 million, sold at or above their listed price. The most competitive Seattle markets were Kenmore-Lake Forest Park and North Seattle, with sales in the first 10 days averaging 107% and 106% of their listed price, respectively.
There were 50% more Seattle home sales in Q3 (2,929) than in Q2 (1,956) and 29% more sales than in Q3 of 2019 (2,279).
The highest Seattle home sale was a 2014-built, 6400 square foot Laurelhurst (North Seattle) waterfront home for just shy of $11.5 million and the lowest was a 1982-built, 240 square foot approved floating home in a leased slip on Lake Union (Ballard-Green Lake) for $187,500.
Click here for the full report and neighborhood-by-neighborhood statistics!
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The Eastside median sale price broke the million-dollar barrier, coming in at $1,025,100 in Q3, up 7% over Q2 ($958,000) and 11% over Q3 2019 ($925,000). Kirkland-Bridle Trails (+18%) and the Eastside South of I-90 (+10%) performed best over Q2. while Eastside South, East Bellevue, West Bellevue, and East Lake Sammamish all saw double-digit increases over Q3 2019.
67% of Eastside homes, and 32% of homes priced above one million dollars, sold for at or above their listed price. The most competitive Eastside markets were East Bellevue, Mercer Island and Redmond-Carnation, with sales in the first 10 days averaging 105%, 104% and 104% of their listed price, respectively.
There were 56% more Eastside home sales in Q3 (2,448) than in Q2 (1,570) and 19% more sales than in Q3 of 2019 (2,055).
The highest sale was a $23.5 million 1908-built Hunts Point estate on 1.59 acres sold off-market and the lowest sale was a 1960-built Stossel Creek fixer without documented well or septic on 4.79 acres in Duvall for $235,000.
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Of Mercer Island’s 113 Q3 sales, all but two were for over $1 million and 41 were above $2 million. There were 14 sales above $3 million in Q3, compared to only 4 in Q2.
As the quarter came to an end, there were only 35 homes for sale compared to 75 in Q3 2019. This shortage of available homes on the market has led to an extremely competitive market for the most desirable homes, especially those offering one-level living or a main floor owner’s suite.
58% of all homes, and 16% of homes priced above two million dollars, sold for at or above their listed price.
The highest Mercer Island sale was a $10.2 million, Faben Point waterfront home. The lowest sale was a $925,000 North End fixer sold at land value.
Click here for the full report and neighborhood-by-neighborhood statistics!
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CONDOS – SEATTLE & EASTSIDE
The number of Seattle condos for sale has increased markedly, and while the pace of sales is up, it is nonetheless struggling to keep up with the volume of condos coming to market. Condos fared well overall with a median sale price up by 5% (to $479,925) over Q2 ($455,000) and by 9% over Q3 2019 ($438,500). Condos in Shoreline-Richmond Beach, Queen Anne-Magnolia, and South Seattle experienced double-digit increases in median sale price while the Downtown-Belltown median sale price was 6% lower than Q2.
54% of Seattle condos (all price points), and 4% of those priced above $1 million, sold at or above their listed price. 48% sold in the first 10 days on the market. There were 68% more Seattle condo sales in Q3 (784) than in Q2 (468) and 11% more sales than in Q3 of 2019 (706).
On the Eastside, the median sale price was down 5% to $499,950 in Q3 following a record setting Q2 ($525,000), but up 6% over Q3 2019 ($471,000). Condos in Kirkland-Bridle Trails (+13%) and West Bellevue (+11%) saw increases in median sale price while the Eastside South of I-90 (-15%) and East Bellevue (-17%) saw declines from Q2.
60% of Eastside condos (all price points), and 3% of those priced above $1 million, sold at or above their listed price. 49% sold in the first 10 days on the market. There were 72% more Eastside condo sales in Q3 (755) than in Q2 (440) and 17% more sales than in Q3 of 2019 (643).
Check out area-by-area details the full condo report.
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Waterfront rebounded in a big way in Q3 with record setting sales velocity. The Eastside had more sales this quarter (18) than the last three prior quarters combined. The supply of inventory fell to 3 months (from an average of 10 months of supply) with only 16 waterfront homes for sale at quarter end. Lake Sammamish posted 14 sales after a sleepy prior four quarters with a combined total of 14 sales. For sale inventory is in step with the Eastside at 3 months of supply (from an average of 5 months of supply).
Mercer Island saw 12 waterfront sales in Q3, a sharp increase from its average of five sales per quarter. With only 8 waterfront homes on the market, Mercer Island’s available inventory fell from an average 12 months to just 2 months of supply. Seattle posted 12 sales, maintaining its typical pace of sales. There were 17 waterfront homes for sale at the end of Q3 and Seattle’s for sale inventory remained a steady 4 months of supply.
The highest sale was a $23.5 million 1908-built Hunts Point estate on 1.59 acres sold off-market with 138 feet of premium Lake Washington waterfront. The most affordable was a $1.1 million Holmes Point home built in 1928 with 36 feet of waterfront on the lake.
This top-level overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, provides a glance into the trends occurring in our region over time. Interesting, and certainly insightful, it in no way replaces an in-depth analysis on waterfront value provided by a savvy broker with years of local waterfront experience.
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© Copyright 2020, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.
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