October was another very strong month for real estate in our area. I just did some digging and thought you might be interested in some observations along with some thoughts about 2021:
- Eastside: The Eastside had the second highest number of sales (ever) in October 2020. The median price on the Eastside was 17% higher than October 2019 and there was just 0.6 months of inventory (a normal market is 2-4 months). 61% of the homes sold in 11 days or less for full price or over list price (with multiple offers).
- Downtown Bellevue condominiums: 0.8 months of inventory and the median price jumped 85%. This 85% increase is skewed since the One88 condos that was pre-sold 2+ years ago are now closing very quickly in massive numbers at high prices.
- Seattle: Over in Seattle we saw 1.2 months of inventory and the median price increased just 3%. Although the market is doing quite well, it is not as hot as what we continue to see on the Eastside.
- Seattle condominiums in Downtown/Belltown area: 7.2 months of inventory and the median price declined 15%. Wow, this is quite different than anything else we see in King County.
- Snohomish County: Super strong with 0.5 months of inventory with a 16% increase in median price compared with October 2019.
- So what is ahead? No one can say for certain, but we do know that the local real estate market has a pattern of seasonality. Buyers start coming out in January and February of each year and the highest numbers of homes are listed between April and August. The result? Annual price appreciation typically takes place in the first 6 months of the year and then flattens out for the second half of the year.
- 2020 was a bit different as Covid-19 delayed the buying frenzy and our market was crazier than usual later in the year. That being said, the record low inventory, low interest rate environment, and high transaction volume we are experiencing give a hint of what to expect for 2021.
- 2021 outlook
- 50% to 60% of the homes will sell for over list price in one week or less (yes, more of the same)
- The median price paid over list price will be at least 5%
- Annual appreciation could be 12 – 15% or more
Takeaway for buyers:
Buying a home in our area takes proper planning and strategy. Who you work with matters more than ever. While prices are higher, the incredibly low interest rates keeps payments more reasonable. Prices are expected to climb and rates will not stay below 3% forever.
Takeaway for sellers:
With such a shortage of inventory it is an amazing time to be a seller (unless you have a condo in downtown Seattle☹). With proper pricing, presentation, and representation sellers can do incredibly well.
As always, I hope you will consider me as resource. Please contact me to talk more about your specific situation!