Wednesday Update: Seattle’s Eastside Residential Market Update for the week of 11/02/22
RATES: The Federal Reserve is set raise short term rates today. This will be the 6th time this year as they continue trying to rein in the economy through “demand destruction” making everything more expensive to finance including housing. The 10 year treasury (what 30 year rates are based upon) is not directly tied to the Fed’s action but is certainly impacted by the broader market, so we will report back next week on the impacts of today’s move by the Fed. Thankfully, rates have remained flat since last week with the 30 year fixed rates at 7.12%. It is still 3.98% higher than it was 1 year ago.
THE MARKET: Active listing declined a bit to 968 this week, which is still above the 7 year average for this time of year at 860 active listings. Pending sales did show some improvement over last week, which dropped the Months of Inventory (supply vs. demand) down to 2.38 MOI. Months of Inventory was 0.4 MOI last year and the 7 year average is 1.2 MOI. So, the market activity still remains well below last year and below its normal pace for the last 7 years.
Active Listings reached their highest level this year on 7/27/22 at 1189. Active Listings are down from last week. 968 vs 997 a 3% decrease. Compared to a year ago this week, listings are up 517%.
Active List Prices peaked this year in the week of 3/9/22 with the median at $2,499,500. As of this week they are at a median price of $1,672,500
Pending Sales have rose from last week. 94 vs 81 a 16% increase. Compared to a year ago this week, pending sales are down 16%.
Pending Sales Prices peaked this year in the week of 3/30/22 with the median at $1,659,500. As of this week, they are now at a median of $1,350,000, which is up from last week where they were at $1,375,000.
Months of Inventory reached their lowest level (favoring a seller) this year in the week of 3/9/22 at 0.16 months of inventory.
Current Months of Inventory declined this week. It was 2.84 months of inventory last week and is now 2.38 months of inventory.
(Months of Inventory Guide: 2 months or less = Seller Favored, 2-4 months = Balanced Market, 4+ months = Buyer Favored)
As always… If we can help with any questions as you contemplate your real estate moves, let us know! Tony Meier & Team – Windermere