Q4 Market Update
/Typically, the real estate market slows down over the holiday season. Buyers take a break from their home search, whether from fatigue or just the hustle and bustle of the holidays. And sellers tend to focus on gathering with loved ones instead of preparing to list. But, 2021 has proved to be anything but typical: What little inventory there was in the fourth quarter of the year was scooped up by eager buyers, closing out a huge year for real estate. Check out the findings for the five areas Realogics Sotheby’s International Realty examines for its quarterly report to get a feel for where the market has been and where it’s headed next.
Dive into the data below! If you have any questions or would like to learn more about your specific neighborhood, please reach out! We’d be happy to help.
Mercer Island
The number of homes sold on Mercer Island remained fairly steady year over year, showing only a slight decrease. Likewise, the year-over-year price per square foot average price also stayed level. The average days these island homes were on the market, however, saw a steep decline, from 38 days in the fourth quarter of 2020 to just 12 in the fourth quarter of 2021. And the median home sales price saw an increase, too, up over 14 percent year-over-year, to $2.19 million. Mercer Island does boast some of the most in-demand, high-end properties in the Seattle metro, and those wanting to make a move there would benefit from the skilled insights of a Realogics Sotheby’s International Realty broker. And likewise, those looking to list and maximize their home’s value by targeting an audience of buyers who will compete with just .2 months of inventory available, should consult an RSIR global real estate advisor.
Seattle
The Seattle market has been busy, but not enough to satisfy buyers. With only half a month of inventory available and the number of homes for sale down by almost 70 percent, it was the epitome of a seller's market. Year over year, the median sales price increased by only 5 percent, but it’s the price per square foot that will likely lead to a lasting impact on sellers’ listing prices. With an increase of nearly 18 percent, the price per square foot will impact the comparables that listing agents use to advise their clients on their home’s listing price. And if inventory continues to stay low, with an expected buyer demand to remain steady, if not increase in the traditional spring selling season, the sellers will stay in the driver's seat, with the average days a home is on market at 17.
Eastside
The home price growth on the Eastside has been stunning, especially for single-family homes in the area. At the beginning of 2020, the median home price was less than a million. And now, the median home price is up more than 33 percent year over year. The uptick in price (the Seattle area has experienced some of the highest home price growth in the country) is at least in part driven by the lack of inventory that’s available. Twenty percent fewer homes sold in the fourth quarter of 2021 compared to the same time in 2020. And when it comes to homes left for sale, there were 53 on the market compared to 164 the year before. If more sellers enter the market, as they’re expected to, prices are likely to stay at this level and continue their climb, but perhaps maybe more steadily than in 2021.
