Seattle Inventory is down 2.98% in the past week; and down 23.02% since November 2, 2018. That is 1,355 homes for sale in Seattle proper on November 2, 2018. But what does that mean?
Median House Prices
Though the median house price has remained relatively constant, price per square foot has actually been increasing since early November. Price per square foot is up 4.23% since that time. How does this work? Essentially this means that the average size of the house on the market has been falling, yet the median sale price has remained constant, thus increasing the price per square foot. These are the beginning signs of the slightly more competitive market we’ve been talking about. Now we’ll see how long this last though.
As you can see in the inventory chart below, overall inventory has been falling, but we are nowhere near inventory levels from mid-December 2017, 2016, or 2015. There is still a ways to go before our market looks anything like previous years’ markets.
Median Sale Prices (per NWMLS)
- Up 5.22% year over year in King County
- Up 4.66% year over year in Snohomish County
- Up 11.63% year over year in Pierce County
- Up 4.93% year over year in Kitsap County
What the Average Median Price Reveals
Averaging the median appreciation rates above, we get an unweighted appreciation rate in Puget Sound Real Estate of about 6.61%. However, this 6.61% is not equal to 6.61% in the stock market. Reason being: Homeowners borrowed most of the asset that 6.61% is calculated upon.
Per the National Mortgage News, the average down payment in the third quarter of 2018 was $47,265.
If we average out the median sale price of the four counties above, we’re at a median sale price last month of $430,500. 6.61% on $430,500 = $28,456.05. However, if the homeowner only put down the average down payment of $47,265, then they’re actually looking at a $28,456.05 gain on their $47,265 investment…or a return on investment for the Puget Sound Homebuyer this past year of 60.21% (The S&P is down 1.48% today versus market close on December 14th, 2017)
Interest Rate Check-In
Per Bankrate.com, the 30 Year Mortgage interest rate declined 7 basis points this past week to 4.83%, with .34 in discount and origination points.
Rates are .73% higher than the 52-week low-interest rate and are near their highest levels since February 2011.
These charts are Seattle Specific, but the Puget Sound Real Estate Market mirrors the Seattle market.
Scott Sheridan is a Loan Officer with Primary Residential Mortgage, Inc. Being in the mortgage industry for three years, Scott brings a fresh millennial flair to the industry. He is well-versed in the most modern, efficient, and convenient ways to get things done. Scott combines these skills with a genuine love of his work and recent experience in what is it like to be a first and second-time home buyer. You can follow Scott’s weekly market updates on his PRMI Facebook Page.