Seattle’s real estate market is “coming back to life”

With sellers nonetheless on the sidelines within the Seattle metro space housing market and patrons popping out of hibernation, demand could also be outpacing provide, in line with the newest RE/MAX Nationwide Housing Report.

• That would result in sharper value will increase in spring after a relative flattening of the market on the finish of final yr.

Why it issues: Reduction from the area’s sky-high pandemic residence costs was welcomed however could also be short-lived, particularly with mortgage charges creeping up once more.

By the numbers: Based mostly on Redfin information, Seattle’s median residence gross sales value was $715,000 in January, up 0.7% from January 2022 and up 1.56% from December.

• The variety of houses available on the market final month — 2,988 — was down about 16% from the earlier month.
• In January, 1,523 Seattle houses had been offered, down 33.90% from January of final yr.

Zoom in: In Seattle, extra houses are actually promoting beneath the listing value, in line with the newest RE/MAX Nationwide Housing Report. That places Seattle in second place within the U.S. for the most important lower in close-to-list value ratio.

However stock is down, houses are nonetheless costly and month-to-month mortgage prices are up after a quick respite final month, in line with Zillow’s Month-to-month Housing Report for January. Different Zillow findings:

• The mortgage on a typical residence in Seattle with a 20% down cost was $3,346 in January. That is 38% greater than a yr in the past and nearly double the $1,848 seen in January 2020.
• New listings had been down 32% yr over yr and it is now taking about 37 days from the time a home is listed till a sale is pending; that’s 32 days longer than it took in January 2022.

Zoom out: Nationally, median residence gross sales costs have crept up 1.3% from one yr in the past, and gross sales fell for the twelfth month in a row, writes Axios’ Brianna Crane and Sami Sparber.

What’s subsequent: Spring, sometimes marked by larger demand, extra competitors and steeper residence costs, is correct across the nook.

• If spring 2023 follows typical developments, we must always count on extra patrons within the close to future.

What they’re saying: What occurs subsequent will probably be closely influenced by mortgage charges, Zillow senior economist Jeff Tucker instructed Axios Seattle.

• “The market is coming again to life,” he stated. “It is not the loopy frenzy of 2021 and early 2022, but it surely’s not the doldrums of October and November both.”