"Mortgage rates are climbing, but Seattle's housing market isn't slowing down!"

Despite recent rate increases, Seattle's real estate remains competitive, with rising sales intensity and record-high listing activity. But there’s more: with election results on the horizon, many are wondering how future housing policies might impact Seattle’s housing market dynamics.

In this post, we’ll dive into the key factors driving Seattle’s housing market, with a close look at Sales Activity Intensity™, Monthly Inventory Levels, and Interest Rates—essential metrics for anyone planning to sell their home in Seattle right now. So if you're curious about what’s ahead and how to make a strategic move in this environment, read on!

Sales Activity Intensity™

Current Effect: Sales Activity Intensity™ in Seattle is notably high, with 46.4% of homes selling within the first 30 days. This marks the market as “very strong,” and indicates heightened demand, especially as we enter the typically quieter months of the year. Homes are spending an average of 29 days on market, and the competition remains robust, with homes averaging 14 showings before going pending.

What This Means: Buyers, it’s a busy market out there! With almost half of homes going under contract within a month, acting quickly is essential. Sellers, this high-intensity environment works in your favor, but competitive pricing and smart presentation can still help attract more serious offers in a crowded field.

---

Monthly Inventory Levels

Current Effect: Inventory in Seattle has tightened further to 2.1 months, down from 2.3 in October. Although 1,220 new listings hit the market, there were still 2,319 homes available, which isn’t enough to keep up with demand. The market is well within “low” inventory levels, signaling that while there are homes to choose from, buyers face strong competition for desirable properties.

What This Means: Buyers, expect the competition to stay tough. While there are some new listings, high demand means homes are moving fast. Sellers, low inventory levels keep the market in your favor, but pricing competitively is still key, especially with more homes coming online each month.

---

Interest Rates

Current Effect: Rates have risen to around 6.87%, up from October’s post-Fed rate cut of 6.12%. While not a historic high, this rate increase affects buyers’ monthly payments, potentially reducing some purchasing power, especially for first-time buyers.

What This Means: For buyers, higher rates mean higher monthly payments, but demand is still driving strong competition. Sellers, consider offering rate concessions to help buyers offset financing costs, which can make your property stand out in the current market.

---

Overall Market Trends

Seattle’s housing market remains active, with tight inventory, strong demand, and rising rates defining November. Despite the seasonal shift, high buyer activity has continued, and with election results pending, there’s an added layer of market suspense. While inventory and rising rates may give some buyers pause, the Seattle market remains competitive for now, with buyers ready to secure homes before the year-end and potential future rate hikes.

---

Key Takeaways:

For Sellers

• Stage and Price Right: Even in a favorable market, sellers should make their home appealing with smart staging and competitive pricing.
• Seize the Moment: With demand high, consider listing now to capture buyer interest while activity remains high.

For Buyers

• Stay Pre-Approved: The rising rates make pre-approval crucial, so you know exactly what you can afford.
• Look for Flexibility: More listings are emerging, so don’t hesitate to explore options and ask for seller concessions, especially if a home has been on the market for a while.

---

Residential Resale, Condos & New Construction

Resale Residential Homes: The average sale price for Seattle homes in November was $1,012,010, and the sales-to-list price ratio was 100.3%, meaning homes are still selling right around asking price. Sellers should prepare to move quickly, with most homes going under contract in about 29 days.

Condominiums: Condo prices remain appealing for first-time buyers or those looking for a lower price point. Though condo demand is steady, buyers should watch for HOA fees, which can impact monthly expenses.

New Construction: Demand for new builds is strong, particularly as buyers look for energy-efficient features and newer layouts. Builders might consider incentives like mortgage rate buy-downs to attract rate-sensitive buyers in the current climate.

---

The Fed’s Influence

The recent rate hike has impacted monthly mortgage payments, with the rate now at 6.87%. The Fed may make further adjustments to respond to inflation, which could keep buyer activity high as they try to secure homes before any additional hikes.

---

Seasonality

Although November typically sees slower real estate activity, the combination of increased listings, strong buyer interest, and rate increases suggests that this season may be busier than usual. For buyers, the pre-winter period might be a good opportunity to find new listings before the winter slowdown. Sellers can expect steady activity, especially if they price their homes to align with rising competition.

---

Strategic Insights for Buyers and Sellers

For Sellers

• Stage & Price Competitively: With high competition, sellers should focus on pricing right and making their property attractive with simple staging.
• List Now to Capture Demand: Buyer demand remains high, making now a great time to list and take advantage of high intensity before the market potentially shifts in 2025.

For Buyers

• Get Pre-Approved: With higher rates and more competition, knowing your budget is essential for quick decision-making.
• Negotiate Concessions: Some sellers may be open to offering concessions or rate buy-downs, so explore options to ease financing costs.

---

The Rent vs. Buy Conversation

With rent up 8.3% year-over-year, buying is becoming an appealing option, especially for those planning to stay in Seattle long-term. Average rents in Seattle hover around $3,825 for a three-bedroom, close to monthly mortgage costs on a $700,000 home at current rates. Buying can be a strategic hedge against inflation for those seeking stable housing costs and long-term equity growth.