Market Trends: Q4-2023
The final quarter of 2023 presented a market that has weathered continual challenges throughout the past two years. In October, mortgage rates peaked, hitting their highest rates in over two decades. Although they proceeded to decline, finally dipping below 6 percent, sellers were hesitant to list their homes and lose their lower interest rates, particularly ones who took advantage of the record lows seen in January 2021. Buyers were similarly discouraged by high rates and the lack of inventory. However, those who were determined to find their dream home, despite the obstacles, were rewarded with less competition and more negotiation power.
Additionally, the winter market is typically a less active period in real estate than spring and summer, with more people focused on winding down as the year ends than making any major real estate moves. If rates continue to go down—which is projected, albeit, slowly—then we should see the market thaw as we move further into 2024 and away from the chilly conditions that have affected both buyers and sellers.
Seattle | Single-Family Homes
Sellers participating in the Seattle market in the fourth quarter of the year saw similar sales prices to those who sold in Q4-2022, with a median sales price of $918,000 and an average price per square foot of $538 in 2023’s fourth quarter.
Seattle | Condominiums
There were very few new construction condominium opportunities offered in the Seattle market in 2023, similar to 2022, and this subset of the city’s market saw little year-over-year change.
Eastside | Single-Family Homes
Buyers looking for their ideal Eastside home in the last quarter of 2023 had to contend with a dearth of inventory at just 0.8 months, which was the second lowest of all the neighborhoods analyzed in this report and down from the 1.4 months of inventory we witnessed in Q4-2022.
Eastside | Condominiums
The Eastside condominium real estate market continues to see upward movement even as other markets struggle to rebound from obstacles like low inventory and hesitant buyers.
PIERCE COUNTY | Single-Family Homes
Price growth remained relatively flat with a minimal 2.69% median sales price increase to $878,000 and a 6.09% average price per square foot increase to $505.
KING COUNTY | Single-Family Homes
Despite the lack of inventory, homes still sat on the market for about the same length of time that they did a year ago, averaging 31 days. This indicates that both sellers and buyers were refraining from participating in a chilly market.