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How’s the Market? Annual Review of Seattle Area Real Estate
While 2022 began on the heels of an extreme seller’s market we saw in the wake of the COVID pandemic, the second half of the year showed a marked shift back toward normalcy. Rising interest rates and tech layoffs significantly slowed down the number of home sales. The good news for buyers is that we finally saw a rise in the number of homes for sale (although we’re still not back up to our pre-pandemic inventory level).
Our Chief Economist, Matthew Gardner, predicts that median home prices will continue to pull back from their 2022 spike, but will then resume a more normal level of appreciation once interest rates stabilize. You can find his full forecast here.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
The Seattle real estate market seems to be out to prove the old “tortoise and the hare” fable. The tale the numbers are telling is that when you don’t boom big, you’re likely not to bust big. 2022 was a year of steady growth and a lot less fear than in surrounding cities.
On average in a 2022 total look back, Seattle’s median price was up 10% (to $940,000) over $852,000 in 2021. Most of this gain was realized in the first half of the year, and unfortunately eroded in the second half of the year—when combined, it paints a fairly clear picture that we’re back to a “normal” market coming into 2023.
Queen Anne-Magnolia (up 17%), West Seattle (up 14%) and the Central District (up 13%) all fared better than average. Kenmore hung in at a 6% gain, which, given the volatility of interest rates and speculation, is still a respectable number for the year!
The headline for this year is that overall transaction volume was down in a big way. In Seattle, there were a total of 8,173 homes that sold; this is down 30% from the 11,670 sales we saw the year before. The slower market is not, however, creating a climate of fear where homeowners jump to cash out at the peak. New listings for the year were down a total of 13%.
We’ll be watching closely in 2023. If consumer confidence builds with the stabilization of interest rates, we’re going to have an even larger inventory crisis than we’ve faced in years past.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
Finally, it’s safe to say that balance and normalcy have returned to the Eastside real estate market. The irony is: now that we’re in a balanced market, which is what homebuyers have purported to crave for a long time, the buyer’s appetite to purchase has all but dried up; overall transaction volume was down 36% in 2022 (5,448 sales vs. 8,569 in 2021).
If any of you are considering a move in the next 5 years, NOW is the time. The pendulum has swung back in the buyer’s favor: home inspections, negotiations and contingencies are all prevalent. We may not be at the exact “bottom” of pricing, but interest rates have stabilized, there are good homes for sale, and competition amongst buyers is rare. This is IT!
The Eastside’s Median Sale Price was $1,525,000 in 2022, up 14% over 2021’s unbelievable 30%+ gain ($1,350,000). Woodinville rules the day at a 17% rise, followed closely by Mercer Island (+16%) and Bellevue (both East and West at +15%).
While the market is slower paced, we are not in dire straits. This is thanks to a continued lack of inventory (down 5% YOY), and the amount of equity built in 2020 and 2021. Home sellers will spend the year working to determine the best way to attract a buyer. Price, preparation and timing will all play an important role. Home shoppers are sure to revel in their day in the sun!
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Mercer Island was once again its own unique micro-market within the Pacific Northwest. Total sales volume was only 209 homes, down 46% from 2021. This means that of nearly 10,000 households on the Island, only 2% purchased/sold a home.
The pace of sales was affected not only by interest rate volatility but also by the local tech economy/job market. The median home price nevertheless held strong with a 16% rise over 2021, even with the price correction that we all started to feel mid-year.
Buyers have decided to sit on the sidelines while it all shakes out, but home-owners on Mercer Island are not running for the hills. They’re patiently waiting (often without adjusting their asking prices) for the demand to return. It seems to be working: the median list price to median sales price ratio ROSE in 2022 from 77% to 88%.
2023 should be a solid year for Mercer Island real estate. All the pieces are in place: community pride, great schools and easy transportation. Let’s see if the upward trend continues!
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Seattle condos saw a Median Sale Price increase of 6% (to $520,000) and Eastside condos saw a 13% increase (to $620,000) in 2022. 53% of Seattle condos and 67% of Eastside condos sold in the first ten days on the market. This growth is larger than what we saw in 2021, which hopefully is some good news to anyone thinking of selling a condo in 2023. It seems that demand for urban living may be returning.
66% of Seattle condos and 77% of Eastside condos sold at or above their listed price. Those listings that sold in the first 10 days on the market went for an average of 1% and 4% above their list price, respectively..
On the Seattle side, Shoreline and Lake Forest Park condos saw about a 20% increase—and on the Eastside, Sammamish and East Bellevue condos carried the day with 19% and 23% increases—in Median Sale Price.
Overall, condos get our award for “ones to watch.” They remain a bright spot in terms of affordability when compared to single family homes, especially on the Eastside. Compare the $620,000 median sale price of a condo to the $1,525,000 median home price and it’s clear condos are a great first rung of the property ladder that might get attention in 2023.
Check out area-by-area details the full condo report.
WATERFRONT
There were 93 privately-owned waterfront home sales in the greater Seattle-Eastside region in 2022 (Eastside-32; Seattle-36; Lake Sammamish-15; Mercer Island-10). This is down significantly from the banner year in 2021 when we saw a whopping 170 total sales.
This truly is a market with geographic limitations. With such a high volume of sales in 2021 and a relatively strong 2022, we expect 2023 to be more conservative. Our late-2022 market shift from an extreme seller’s market to a more balanced level of supply and demand coincided with the close of the waterfront selling season. This means pricing will be tricky this season as we explore uncharted waters. More than ever, real estate experts will be essential to analyze the data and consult their spidey-senses to find the price that will attract a buyer in this new normal.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis with your trusted professional.
© Copyright 2023, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and Trendgraphix, and deemed accurate but not guaranteed.
How’s the Market? Q3 2022 Real Estate Review
While still considered a seller’s market, our July-September home sale activity signaled the return of some much-needed balance. Seattle and Eastside home prices still posted year-over-year gains in Q3, but rising interest rates markedly slowed the pace of both listings and sales. Houses also stayed on the market longer than we saw during the frenzy earlier this year—the average Seattle home took 17 days to sell, while Eastside homes averaged 25 days to sell. Buyers have a great opportunity to negotiate better terms now with an eye out to refinance when interest rates come down in the future.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
There is a lot of good news in Seattle these days: Progress is being made in taking back downtown, the West Seattle Bridge is open AND real estate prices are UP year over year.
Transaction volume is down 35% across the city, which we can likely attribute to the volatility in interest rates, but listing volume is also down 10%. This is comforting! Supply and demand rules the market, and the last thing this balancing market needs is more inventory. We think this drop in seller enthusiasm is likely caused by the golden handcuffs of their historically low interest rates and refinance boom: even if your home isn’t meeting your needs these days, that 2.75% interest rate might be hard to give up.
Seattle’s average list/sold price ratio is 97%. This means if you listed your home for $1,000,000 you could expect to sell for $970,000 in Q3 of this year. Compare this with 82% on the Eastside. Seattle home sellers are more realistic and less affected by the price bloat of the last several years. We didn’t boom as hard, and we may not feel the impacts of a market balance as sharply either.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
While we’re finally seeing the numbers reflect what the market has been feeling since May, it’s not as dire as one might think. Sales volume has slowed 38% year over year (based on total transaction count). However, new listings are also down (3%) which means the market reaching its peak has not sparked a sell off. This should keep our new normal buzzing along at pace similar to 2018 and 2019. Great homes that are priced right will sell—21% of homes sold above asking price and 40% of homes sold in the first 10 days.
Median list price is down 6% while median sales price is down 14.5%, which means homeowners looking to sell on the Eastside now have some data points to help them with realistic expectations of how to find the market. Average days on market is 25, which is higher than it’s been since Q1 of 2020! This is still slightly under the 6-year average. Don’t be tempted to think that there is something wrong with a home just because it has been on the market for a month; there are a lot of quality homes ready for their new owners.
The news of the day is interest rates. Heavy volatility in the markets and the administration’s drive to stem inflation have caused many buyers to pull out of the market. If you’re thinking you’ll wait for lower rates AND lower prices, you might be dreaming—if rates come down next year as predicted it will likely spur activity on. Our best advice: THIS is the market you’ve been waiting for. As a buyer you have choice, time and negotiating power for the first time since 2018. Capitalize! Then, refinance later.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Given the broader local news, we might expect doom and gloom from Q3 stats—this expert sees lots of opportunity and much needed stabilization after the crazy COVID boom. While median prices have fallen 1% year over year, the average price per square foot is actually UP. What does this mean? Comparing a median with an average is always a little tricky, but this likely points to a slowdown in the sale of larger homes.
To me, the better signs of market predictability are the months supply of inventory for the quarter (about 6 weeks for both condos and single family) and the average days on market (18 for sf and 57 for condo). These are all relatively healthy benchmarks, even though they’re markedly higher than in previous quarters. This is what’s causing media to report doom and gloom: inventory is up sharply (there was ONE active listing at the end of Q4 2021 vs 44 at the end of Q3 2022) and pending sales are down (57 vs. 94 last year in the same time period). When you compare our current numbers to any time period outside of the last two years, we’re faring very well!
The news of the day is interest rates. Heavy volatility in the markets and the administration’s drive to stem inflation have caused many buyers to pull out of the market. If you’re thinking you’ll wait for lower rates AND lower prices, you might be dreaming—if rates come down next year as predicted it will likely spur activity on. Our best advice: THIS is the market you’ve been waiting for. As a buyer you have choice, time and negotiating power for the first time since 2018. Capitalize! Then, refinance later.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Condos remain the tortoise as opposed to the hare like residential markets of 2020-early 2022. Slow and steady will definitely win this race as the affordability of homeownership shrinks with rising interest rates. Looking at combined condo data (Eastside + Seattle), months supply of inventory is down to about 6 weeks from 2 months last quarter. Low months supply of inventory and low cumulative days on market (23) are two of the leading indicators of market health, and both are as low or lower as they’ve been in the recent past.
Condo prices are also holding strong with no change to the average $ per square foot in Seattle and an overall 5% rise in median sale price year over year. The Eastside tells an even slightly better story: a 9% rise in $ per square foot and a 6% rise in median sale price despite a 41% year-over-year drop in the number of transactions.
Keep rooting for the tortoise. This is a necessary niche in our marketplace. The first rung on the property ladder is condos again for the first time in a long time, and we really hope our Gen Z and Millennial buyers take the leap!
Check out area-by-area details the full condo report.
WATERFRONT
The most affordable place to buy waterfront this quarter was Beach Dr in West Seattle at a closed sale price of $1,800,000 for 22’ of waterfront on an 11,000 sq. ft. lot. The largest piece of shoreline overall was 172 feet in Medina on Lake Washington, which commanded a sales price of $17,800,000.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis provided by a savvy broker with years of local waterfront experience.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2022, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.
Kicks for Kids Shoe Drive August 8-19
Help us give kids the confidence they need to start the school year right! Windermere Mercer Island invites you to participate in our Kicks for Kids back-to-school sneaker drive. It connects low-income youth in our local communities with new shoes for the upcoming school year. Between August 8th and 19th, we’ll be accepting donations two ways:
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Bring new or gently used sneakers (toddler/youth sizes) to my office at 2737 77th Ave SE, Ste. 100, Mercer Island. We’ll enter your name into a raffle for a delectable prize from Island Treats, and we’ll also match the first 100 pairs of shoes donated!
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Shop from our Amazon Wishlist.
This year, we’re partnering once again with the Eastside Baby Corner, an amazing organization that helps kids thrive by providing resources and essentials with their 70+ partner agencies—many of which are school districts.
Help us make sure every child has a new pair of shoes for school!
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2022 Windermere Mercer Island
How’s the Market? Q2 Real Estate Review
While Seattle and the Eastside are still considered a seller’s market, buyers experienced some much-needed relief in the second quarter with new listings outpacing the number of homes sold. Rising interest rates have initiated a shift toward a more balanced market. Opportunities abound for both sellers (who are still seeing higher sales prices than this time last year) and buyers (who finally have some breathing room to negotiate price and contingencies). We expect this shift to continue with a stabilization of home prices rather than the steep upward trajectory we saw last year.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
The Seattle real estate market for single family homes is holding steady despite rising interest rates and slowdowns elsewhere in King County! The median sale price is up 9% since the end of 2021 (from $910,000 to $1,000,000). Year over year, the median price rose from $895,000 in Q2 2021 to $1,000,000 in Q2 2022 (also roughly 12%).
Anecdotally, we believe that Seattle continues to gain ground because it remains affordable when compared to the cities and neighborhoods to the east. Eastside median prices rose so sharply over the last two years that it left Seattle “in the dust” as the market leader of the region. As we know, slow and steady wins the race, though there is no way to know yet if this particular race is a marathon or a sprint.
Interest rates nearly doubled in Q2, though that seems to leave Seattle home shoppers undeterred. 86% of the sales in Q2 sold in the first 10 days at an average of 110% of list price.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
Relief has finally come to home shoppers on the Eastside! New listings are up 13% year over year. Further, there has been a slide in total number of sales, down 18% year over year. This means there are more choices for anyone who is in the market to buy a home. Price gains remain steady for now, up 22% over Q2 of 2021. This is likely riding the wave of growth in late 2021 and early 2022, but with the higher supply and lower demand this is may be a trend that tapers off in the near future.
Average price per square foot saw its first quarterly drop since Q2 of 2019, down from $713 in Q1 to $685. The overall median price fell from a high of $1,625,000 in Q1 to $1,610,000 in Q2. Even more exciting for home buyers is that (when in competition) the list to sales price ratio is 109%— down from 119% in Q1.
If you’ve thought about selling your home, it’s still a great time. When a home is prepared well and priced right shoppers pay attention. Of the 2177 homes sold in Q2, 84% of those sold in the first 10 days. This isn’t far off of the 90% that was posted in Q1. It is harder to get noticed today than in recent memory—this is where choosing a true professional to partner with is so important! Windermere brokers have their fingers on the pulse and know how to make you stand out in a crowd!
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Mercer Island continues to be a fabulous place to be a homeowner. Median prices and price per square foot both saw increases over Q1 2022 numbers (6.5% and 5% respectively). Anecdotally, there has been a pace change. We don’t expect that to reflect in the stats until Q3, and even then the numbers are likely to be favorable as we gained so much ground in Q1 of this year.
The data that supports what we’re all feeling can be found in the relationship between number of new listings and number of homes sold. In Q2, there were 116 new listings and 84 sales compared to the same period in 2021 when we had 124 new listings and 102 sales. So, if you’re feeling like inventory is “up,” it’s not because more homeowners are deciding to sell but rather it appears that demand is down. Another way to look at this is that we sold 82% of the active inventory in spring of 2021 but only 72% in 2022. These are healthy numbers but it’s enough of a drop for us to feel it.
If you’re a buyer trying to break in to the Mercer Island market, it’s getting easier. 83% of the 116 new listings sold within the first 10 days for an average of 111% of the asking price. This is the most favorable these numbers have been since 2019. Working with a local pro will be your biggest advantage to determine which homes will sell at a premium and how to get the best deal!
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Condo average prices have seen their biggest quarterly rise since Q3 of 2016! As home shoppers adjust expectations amidst rising interest rates, the affordability offered by condos is an exciting place to turn. We are thrilled to see condos be a viable option as we recover from the pandemic and buyers return to more densely populated areas.
North Seattle (up 34%) and Capitol Hill (up 10%) are bright spots in the total number of condos sold year over year for Seattle. This makes perfect sense as both areas offer access to our growing light rail system and new retail opportunities that didn’t exist pre-pandemic. Seattle’s total sales year over year remained flat, literally zero, which means these two neighborhoods carried the entire city.
The same data point on the Eastside saw the entire area’s total number of sales fall 27% year over year. West Bellevue (down 51%) and Mercer Island (down 38%) topped the list. Meanwhile, prices on the Eastside are up an average of 20%.
Check out area-by-area details the full condo report.
WATERFRONT
Waterfront season is heating up. As expected, inventory is up from Q1 (32 total sales in Q2 v 17 in Q1), but what hasn’t changed is an average of only 6 listings for sale at any one time across all shorelines! Of all of the waterfront shorelines, Mercer Island boasted the lowest days on market with an average of just THREE days. Seattle had the highest days on market, with an average of 41 days.
The most affordable place to buy waterfront this quarter was Beach Dr in West Seattle at a closed sale price of $1,800,000 for 25’ of waterfront on a 17,000 sq. ft. lot. The largest piece of shoreline overall was 177 feet in Issaquah on Lake Sammamish, which commanded a sales price of $11,600,000.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis provided by a savvy broker with years of local waterfront experience.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2022, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.
How’s the Market? Q1-2022 Real Estate Review
Across the region, home values continued to see huge year-over-year gains from 2021 to 2022. Most homes sold in the first 10 days and for well above the asking price. We started the year with an extreme shortage of homes for sale, resulting in an overall lower number of sales compared to the start of 2021. Buyer demand, however, remains incredibly strong.
With interest rates on the rise, buyers are feeling more pressure than ever to secure a home. We are hoping to see more listings come to market this spring and provide some much needed relief for weary house hunters.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
The Seattle real estate market for single family homes is off and running! The median sale price is up 6% since the end of 2021. Which means: Seattle’s price gains were as much in the first quarter as all of 2021. Year over year, the median price rose from $800,000 in Q1 2021 to $910,000 in Q1 2022.
For anyone who has focused their home search on the Eastside and has come up empty handed in 2021, Seattle could seem like an affordable opportunity this year. Seattle’s price gains were strong, albeit conservative in comparison with the Eastside. More plentiful active inventory (relatively speaking), and a more affordable median sale price of $910,000 (vs $1,625,000 on the Eastside) indicate that Seattle could be a bright spot of hope for any buyers left behind by the Eastside’s double-digit gains.
Rising interest rates in late Q1 are sure to play a part in the weary home buyer’s decision-making process. However, the close of quarter numbers are encouraging: 82% of homes sold in the first ten days!
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
Once again Eastside Real Estate is off to an incredible start in the first 3 months of the year. Multiple offers and wildly aggressive escalation clauses are the story of the day, and not just anecdotally—the numbers don’t lie. The average list to sale price ratio was a staggering 119%, which means the typical home listed at $1,000,000 sold for closer to $1,190,000. This is an even stronger showing than the previous record high of 112% in Q1 of 2021.
New listings were relatively flat compared to Q1 of 2020 and 2021 (1912 vs 2058 and 1935 respectively) while the total number of sales were down 21% (1137 vs 1413 in the prior year). We believe this can be explained by looking at the trailing inventory from the previous Q4 in both cases (1496 vs 1238). There were just fewer homes for sale, certainly not less demand. This was reflected in the overall price gain of 25%!
Without a crystal ball it will be tough to tell exactly how much impact the market will feel from the steep rise in interest rates. In the short term, everyone seems to be taking a deep breath as we move into Q2. Overall, the Eastside’s core values—highly ranked schools, community focused neighborhoods, and close commute proximity to some of the area’s largest employers—should keep the area in high demand!
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Mercer Island by the averages was quite shocking in Q1 of 2022: 3 homes per sale per week, 11 days on market, and 111% list price to sale price. This translates to buyers who would have otherwise joined our community casting a wider net to places like Bellevue, Issaquah, and Sammamish.
One of the affordability indicators that we historically track has become obsolete over the past few quarters: number of homes listed/sold under $1,000,000. In fact, there was only one home listed under $1,500,000 in Q1. 21 of the 39 homes had sale prices above $2,000,000 and 9 were above $3,000,000!
If you’re a buyer trying to break into the Mercer Island market, patience and the ability to act fast are the top two tips we have for you. 85% of the 39 homes for sale in Q1 sold within the first 10 days. Working with a local pro will be your biggest advantage.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Condos continue to gain ground early in 2022. While the year-over-year median price gains are conservative compared to the single-family market, we see this as a good thing! Condos are a bright spot for today’s home buyers as interest rates rise.
Seattle condos saw a 9% increase (to $519,000). Eastside condos are up 16% (to $625,000) a 26% lift in price per square foot compared to Q1 2021.
Shoreline and East Bellevue led the market in median price gains year over year, up 66% and 48% respectively. Queen Anne and Kirkland were the most conservative with 1% and 4% gains respectively. 85% of Eastside condos sold over the list price, so if you’re shopping be prepared to compete.
Check out area-by-area details the full condo report.
WATERFRONT
If the first three months are any indication, it will be a tight inventory year in the Waterfront real estate market. On all shorelines, there were a total of 17 homes sold overall with an average of only 6 listings for sale at any one time. The good news is that we’re up from this time last year when there were only 14 homes sold overall.
Notably, the highest overall sale (at $12,750,000) was on Lake Sammamish in Issaquah! The most affordable waterfront this quarter was a home in Rainier Beach that sold for $1,362,500.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis provided by a savvy broker with years of local waterfront experience.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2022, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.
How’s the Market? Annual Report on Seattle Area Real Estate…
In the wake of extreme buyer demand and mind-blowing bidding wars, housing prices soared in Seattle and reached staggering heights on the Eastside. Record low interest rates were the silver lining for those buyers who were able to successfully purchase a home with financing.
2022 looks to be another strong year for real estate. Windermere’s chief economist, Matthew Gardner, predicts that interest rates will remain low and home price growth will continue—albeit at a slower, more sustainable rate than we saw in 2021. He also foresees a nice bounce back for our COVID-impacted economy in Q4 of 2022.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
The Seattle real estate market, while extremely active in its own right, was far more moderate than the Eastside’s frenzied and nearly unattainable environment.
Seattle’s Median Sale Price increased by 9% to $852,000 (up from $785,000 in 2020). Neighborhoods in Lake Forest Park-Kenmore (+24%) and Shoreline (+16%) outperformed the average, while Queen Anne-Magnolia (+4%) and West Seattle (+7%) lagged behind.
Despite the tight supply of homes for sale, there was a 20% increase in the number of Seattle homes sold in 2021 (11,589) compared to 9,682 sold in 2020. Central Seattle (+31%) and Queen Anne-Magnolia (+22%) had the largest increases in number of homes sold.
79% of all Seattle homes, and 24% of those priced above $1 million, sold at or above the list price.
Homes that sold in their first ten days on the market went for an average of 7% above list price, compared to 4% over if we look at the overall average. The most competitive neighborhoods were North Seattle and Lake Forest Park, with first-ten-day sales averaging 10% above list price.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
To say the 2021 Eastside real estate market was aggressive would be the understatement of the year. Typical home buyers requiring loans to finance their purchases found it nearly impossible to compete with the many cash or cash-equivalent, no contingency offers that often won out. With few exceptions, home buyers had to be willing to sacrifice rights and fail safes—such as inspection contingencies—that are normally taken for granted in a balanced market.
The Eastside’s Median Sale Price was $1,350,000 in 2021, up an unprecedented 32% over 2020 ($1,020,000) as desperately competing buyers drove prices to record levels. Redmond (+38%) and South Eastside (+36%) saw the largest gains, while West Bellevue (+25%) had the lowest—albeit still staggering—year-over-year increase.
89% of all Eastside homes, and 66% of homes priced above one million dollars, sold for at or above their list price. With fewer than 0.3 Months of Inventory (the number of months it would take to sell all homes currently for sale), the entire Eastside market remained ultra-competitive throughout the year. Many Eastside communities have had only a handful of homes for sale at any one time.
Homes sold an average of 7% above list price. For those sold within the first ten days, however, that number spiked to an average of 11% above list price. The most competitive neighborhoods were East Bellevue and South Eastside, with first—ten-day sales averaging 14% and 13% above list price, respectively.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Fewer than two dozen homes for sale on the Island at any given time in 2021 led to a continued ultra-competitive market. Waterfront, in particular, saw very steep increases during the year as the laws of supply and demand deftly governed prices.
Echoing the extreme price increases seen throughout the Eastside, Mercer Island’s Median Sale Price shot up by a staggering 29% over the last year. It’s worth noting, however, that this number was skewed upward by the unusually high number of luxury waterfront sales.
In 2021, 82% of all homes sold at or above their listed price. Those sold in the first 10 days on market closed for an average of 10% above their list price. On the other hand, homes on the market 11-30 days sold for an average of 2% below their list price list and homes on the market longer than 30 days sold for an average of 6% below their list price.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Seattle condos saw a Median Sale Price increase of 2% (to $490,000) and Eastside condos saw a 5% increase (to $550,000) in 2021. 46% of Seattle condos and 67% of Eastside condos sold in the first ten days on the market.
60% of Seattle condos and 77% of Eastside condos sold at or above their listed price. Those sold in the first 10 days on the market went for an average of 2% and 5% above their list price, respectively.
On the Seattle side, Shoreline condos saw a 43% increase—and on the Eastside, Sammamish and Redmond condos saw a 20% increase—in Median Sale Price driven by both new construction and buyer demand. West Bellevue saw an 18% decrease due to the lack of significant new construction following the debut of luxury new construction in 2020.
Check out area-by-area details the full condo report.
WATERFRONT
There were 170 privately-owned waterfront home sales in the greater Seattle-Eastside region in 2021 (Eastside 59; Seattle 48; Lake Sammamish 36; Mercer Island 27).
The waterfront home market continues to see incredible buyer demand coupled with an extreme shortage of available waterfront homes for sale. As an indicator of demand in the luxury segment, most homes sold near to or above their list price with few outliers—something that historically has rarely happened in this sector.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis provided by a savvy broker with years of local waterfront experience.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2022, Windermere Real Estate/Mercer Island.
Give Back This Season
“We make a living by what we get; we make a life by what we give.”
Giving to others can enrich our own lives in ways we never imagined. With that in mind, here are some of our favorite Seattle-area organizations who are in need of time, resources, toys, and more to help improve the lives of homeless and low-income families in our area. You might also check out these tips on how to make the most of charitable giving. Together we can make the holidays a little brighter for everyone!
Each night in King County, almost 1,100 unaccompanied youth and young adults experience homelessness on any given night, and around 70% of these youth sleep outside because of lack of shelter or housing. Why? A national study found that over 90% of homeless youth reported family conflict and 1/4 suffered from abuse and neglect before they reached the streets. YouthCare builds confidence and self-sufficiency for homeless youth by providing a continuum of care that includes outreach, basic services, emergency shelter, housing, counseling, education, and employment training. Lend a hand by donating most needed items, delivering a warm meal, hosting a virtual fundraiser, or hiring a YouthCare graduate.
http://youthcare.org/
(206) 694-4500
2500 NE 54th Street, Seattle
Northwest Harvest’s mission is to end hunger in Washington. They partner with 375 food pantries, meal programs, and high-need schools across the state to provide nutritious food (an average of 2 million meals per month!) and promote good health for those in need. You can help by hosting a virtual food drive, making a cash donation, or volunteering (children age 9 and up can volunteer with you!).
http://www.northwestharvest.org/
1 (800) 722-6924
SODO Community Market Food Bank: 1915 4th Ave S, Seattle
Kent Warehouse: 22220 68th Ave S, Kent
Mary’s Place helps homeless women, children and families from the greater King County area. You can help by participating in their giving tree tag program now through December 11th. You can also volunteer your time, donate wishlist items, or share your used clothing, blankets, and coats.
http://www.marysplaceseattle.org
(206) 621-8474
Donation Center in SODO: 9 South Nevada St, Seattle
Mary’s Place at the Regrade: 720 Blanchard St, Seattle
Hopelink provides critical services to homeless and low-income families, children, seniors, and people with disabilities on north and east King County. You can help by donating to their Greatest Needs Fund, volunteering at one of their centers, participating in their Turkey Trot 5k fundraiser (virtual this year), or making a cash donation to support their “Lend a Hoping Hand” holiday giving campaign.
https://www.hopelink.org/
(425) 869-6000
8990 154th Ave NE, Redmond
Did you know less than 50% of Washington state youth in foster care graduate from high school? Treehouse seeks to level the playing field by providing academic and other essential support foster kids need to graduate at the same rate as their peers, with a plan for their future. You can help by hosting a holiday drive, purchasing items on their holiday wish list, volunteering, or donating.
https://www.treehouseforkids.org/
(206) 767-7000
2100 24th Avenue S./Suite 200
With a mission to help people in need of immediate food assistance, the Emergency Feeding Program partners with 120 local agencies to distribute 42,000 meals of quality, nutritional food per week and ensure that no one will go hungry tonight. Your volunteer time or cash contribution would be most appreciated.
https://www.emergencyfeeding.org/
(425) 277-0300
851 Houser Way N, Suite A, Renton
Eastside Baby Corner was founded by a local pediatric nurse concerned about the large numbers of babies in her practice who began life without basic essentials like adequate food, clothing, beds, or safety equipment. Today Eastside Baby Corner’s locations in Issaquah, Northshore and Bremerton collect, purchase, and distribute essential care items such as formula, diapers, car seats, warm coats, school supplies, and more for babies and children in need. You can help out by donating goods or cash, shopping off their wish list, volunteering or organizing a drive.
Eastside Baby Corner:
http://babycorner.org
(425) 865-0234
1510 NW Maple St, Issaquah
Last year, King County Toys for Tots donated 85,169 toys to 61,092 local children in need. Consider helping out this year by making a cash donation, donating a toy before December 15th, hosting a Toys for Tots event, or asking your organization to become a toy drop site.
https://fort-lewis-wa.toysfortots.org
Coordinator: GySgt Edward Chapman, 760-405-3203
Every year, nearly 40% of our country’s food ends up in landfills, while millions go hungry. Food Lifeline attempts to solve both problems by rescuing millions of pounds of surplus food from farmers, manufacturers, grocery stores, and restaurants. They then deliver this healthy and nutritious food to more than 350 food banks, shelters and meal programs across Western Washington–providing the equivalent of 201,000+ meals every day for hungry children, adults and seniors. You can help by volunteering (opportunities are available for kids as young as 10, too!), donating funds or hosting a food drive.
https://foodlifeline.org/
(206) 545-6600
815 S 96th St, Seattle
Wellspring helps low-income and vulnerable individuals, children and families in Seattle and King County address issues such as mental health, family homelessness, early learning, basic needs, and domestic violence intervention. Each year they help thousands of children and families break cycles of instability, homelessness, and adversity to achieve positive, permanent change. You can help by donating essential items, cash, or your old vehicle. You can also get your kids involved in the Kids Helping Kids youth philanthropy program.
http://wellspringfs.org/
(206) 826-3050
1900 Rainier Avenue South, Seattle
Founded and run by a group of philanthropic women over 100 years ago, Seattle Children’s mission is to provide hope, care and cures to help every child live the healthiest and most fulfilling life possible. You can help their patients by donating a new toy or gift card, volunteering, contributing funds, or supporting one of its guilds (such as the Project Kids Cancer Cure Guild).
http://www.seattlechildrens.org
(206) 987-2000
4800 Sand Point Way NE, Seattle
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2021, Windermere Real Estate/Mercer Island.
How’s the Market? Q3 Real Estate Review
The frenetic pace of Seattle-area real estate continued in Q3, with the number of sales and median sales prices both up across the region compared to this time last year. Seattle condo sales saw a healthy year-over-year jump as they continued to recover from the COVID slump we saw in 2020.
While buyers still contended with a lack of inventory and stiff competition for available homes, our continued low interest rates were the silver lining. Those obtaining financing were buoyed up by lower mortgage payments and increased buying power compared to times when rates are higher.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
Seattle’s Median Sale Price increased by 8% to $865,500 (up from $800,000 in Q3 2020). Neighborhoods in Lake Forest Park-Kenmore (+19%), Shoreline (+13%), North Seattle (+10%), West Seattle (+10%), and Queen Anne-Magnolia (+9%) outperformed the average while South Seattle (+8%) stayed on par and Ballard-Green Lake (+5%) and Central Seattle (+2%) lagged behind.
There was an 8% increase in the number of Seattle homes sold in the third quarter of 2021 (3171) compared to Q3 2020 (2929) despite the tight supply of homes for sale. Central Seattle (+20%) and North Seattle (+18%) had the largest increases over Q3 2020 in number of homes sold.
79% of all Seattle homes, and 28% of those priced above $1 million, sold at or above the list price. The average of all homes sold closed at a price 4% more than list. Price increases were even more dramatic when homes sold in their first ten days on the market—with an average sale price of 7% above list price. The most competitive neighborhoods were North Seattle and South Seattle, with first 10-day sales averaging 9% and 8% above list price, respectively.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
The Eastside’s Median Sale Price was $1,325,500 in the third quarter of 2021, up 29% over Q3 2020 ($1,025,100). Buyer demand outpacing the supply of homes for sale was the biggest factor fueling this increase. Mercer Island, (+42%), Redmond (+32%), Sammamish (+32%), and South Eastside (+32%) saw the largest gains, while Woodinville (+23%) had the smallest year-over-year increase.
87% of all Eastside homes, and 65% of homes priced above one million dollars, sold for at or above their list price. With 59% fewer homes for sale than in Q3 2020, the entire Eastside market remained ultra-competitive. The average of all homes sold was 7% above list price. Homes sold within the first ten days went for an average of 11% above list price. The most competitive neighborhoods were East Bellevue and South Eastside, with first 10-day sales averaging 13% and 12% above list price, respectively.
The Eastside market saw Months of Inventory (the number of months it would take to sell all homes currently for sale) remain at historical lows of between 0.3 and 0.4 months. Many Eastside communities have had only a handful of homes for sale at any one time.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Fewer than two dozen homes for sale on the Island at any given time has led to a continued ultra-competitive market and unpredictable shifts in median sale price as a result. It’s worth noting that a few very high-end waterfront home sales skewed the median sale price upward as compared to last year.
In the third quarter of 2021, 75% of all homes sold at or above their listed price. Sellers who prepped and priced their homes competitively reaped huge rewards from bidding wars—those that sold in the first 10 days on market closed for an average of 10% above their list price.
On the other hand, those properties that were not immediately snapped up tended to sell at a discount. Homes on the market 11-30 days sold for an average of 3% below their list price, while homes on the market longer than 30 days sold for an average of 5% below their list price. Pricing and condition tended to separate the “haves” from the “have nots” when it came to selling quickly.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Condos did quite well overall in the third quarter of 2021 as single-family home markets became more competitive, and in some cases, unattainable.
Seattle condos saw a 3% increase (to $492,750) and Eastside condos saw a 10% increase (to $551,619) in Median Sale Price compared to Q3 2020.
62% of Seattle condos and 78% of Eastside condos sold at or above their listed price. Those sold in the first 10 days on the market went for an average of 2% and 5% above their list price, respectively.
Check out area-by-area details the full condo report.
WATERFRONT
The waterfront home market continues to see incredible buyer demand while also suffering from an extreme shortage of available homes for sale. Nearly every waterfront home listed for sale sold in record time, some for jaw-dropping prices. The Eastside had 23 waterfront home sales in the third quarter of 2021 while Seattle had 22 Q3 waterfront sales, Mercer Island had 15, and Lake Sammamish had 10 waterfront sales. More than half of waterfront homes listed for sale went under contract in mere days, with an average market time still a fraction of that of a more typical year.
As an indicator of demand in the luxury segment, with few outliers, most homes sold near to or above their list price—something that historically has rarely happened in this sector.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis provided by a savvy broker with years of local waterfront experience.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2021 Windermere Mercer Island
Kicks for Kids Shoe Drive Now Through September 3rd
WHAT: Windermere’s Kicks for Kids event is a back-to-school sneaker drive for low-income youth, distributed through the Eastside Baby Corner.
WHY: Kids from struggling families are in need of back-to-school shoes that fit. When kids feel good about their appearance, it improves both their self-esteem and their performance in school.
WHEN: Formal shoe collection will take place through September 3rd, 2021.
WHERE: Windermere Mercer Island is the collection point where you can drop off new athletic shoes or sneakers (toddler sizes 11-12 and youth sizes 1-6) or a gift card.
WHO: Sponsored by Windermere Mercer Island in partnership with the Eastside Baby Corner, located in Issaquah, Washington.
Help us give kids the confidence they need to start the school year right! My office and I invite you to participate in our back-to-school sneaker drive, known as the Kicks for Kids Shoe Drive! It connects low-income youth in our local communities with new shoes for the upcoming school year. This year, we’re partnering once again with the Eastside Baby Corner, an amazing organization that helps kids thrive by providing resources and essentials with their 51 partner agencies—26 of which are access to services through schools. The Eastside Baby Corner partners with charitable organizations throughout the Greater Seattle Area and helps them with the resources they need to best assist local families in need. Click here to go above and beyond the shoes with their back-to-school wish list!
Help us make sure every child has a new pair of shoes for school!
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2021 Windermere Mercer Island
How’s the Market? Q1 Real Estate Review…
An extreme sellers’ market, driven by too few homes for sale and incredibly low mortgage interest rates, led to the most aggressive multiple offer bidding wars we have experienced in our region. There are simply dozens of buyers for nearly every home that comes to market. To be competitive, most buyers did their home research prior to writing an offer, waived typical protective contingencies—including financing, appraisal, title, and inspection—and drained their savings and investment accounts to pay cash or fund discrepancies between the purchase price and appraised value.
The ability to secure a suitable home in a neighborhood of choice is a luxury not afforded to many buyers, regardless of assets. Indeed, the lack of inventory for sale and competitiveness of the market has kept many current homeowners from moving to a home that would better suit their needs or commute.
Home affordability, or unaffordability, is at crisis levels. Most homes are completely unaffordable to first-time buyers and moderate wage earners who are finding it increasingly difficult to work and live within King County. Snohomish and Pierce Counties are not far behind. While cities and counties are coming to the table to address this issue, the potential solutions will take years to implement and see relief.
Time will tell if For Sale inventory levels will increase as we move further into our peak spring season market.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
Seattle’s Median Sale Price increased by 7% to $800,000 (up from $750,000 a year ago in Q1 2020). Shoreline (+11%), Lake Forest Park-Kenmore (+11%), and South Seattle (+9%) outperformed the average while West Seattle (-2%) and Queen Anne-Magnolia (+4%) lagged.
There was a 39% increase in the number of Seattle homes sold in Q1 (2,271) compared to Q1 2020 (1,632)—much of which can be attributed to emerging COVID concerns in 2020 coupled with increased mobility in 2021. Queen Anne-Magnolia (+91%), West Seattle (+51%), and North Seattle (+47%) had the largest increases in number of homes sold, although all neighborhoods except Lake Forest Park-Kenmore saw double-digit increases in total sales.
75% of all Seattle homes, and 19% of those priced above $1 million, sold at or above their listed price. The most competitive Seattle markets were Kenmore-Lake Forest Park and North Seattle, with sales in the first 10 days averaging 111% and 110% of their listed price, compared to the 107% average for all Seattle neighborhoods combined.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
The Eastside’s Median Sale Price was $1,300,000 in Q1, up 31% over Q1 2020 ($989,950). Movement of companies and households to the Eastside and the extreme lack of a supply of homes for sale were the biggest contributors to this increase. South of I-90 (+39%) saw the largest gains, while the higher-priced markets of Kirkland (+16%), Mercer Island (+17%), and West Bellevue (+22%) had the smallest year-over-year increases—although being well into the double-digits, they could hardly be considered small.
85% of all Eastside homes, and 59% of homes priced above one million dollars, sold for at or above their list price. With 71% fewer homes for sale than in Q1 2020, the entire Eastside market remained ultra-competitive. East Bellevue sales topped the charts with an average sale price of 112% above list price for sales occurring in the first 10 days on the market.
The Eastside market saw Months of Inventory (the number of months it would take to sell all homes currently for sale) remain at historical lows of between .3 and .6 months. Despite the limited supply of homes for sale, there was a 25% increase in the number of Eastside homes sold in Q1 (1,413) compared to Q1 2020 (1,133)—much of which can be attributed to emerging COVID concerns in 2020 and in-migration to the Eastside.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Most notable on the Island was the continued lack of affordable housing options with no sales below $1 million, and only 10 sales below $1.5 million, in Q1. High end sales dominated the market with 30 of the Island’s 64 sales of homes priced $2 million and above. Mercer Island waterfront listings remained depleted with an average of 2 waterfront homes for sale at any given time and a mere 3 sales in all of Q1.
Q1 saw an average of only 17 homes available for sale—an unbelievable low for a typically burgeoning Q1 on the Island. This has led to a continued ultra-competitive market for the most desirable homes, especially those offering one-level living, a main floor owner’s suite or prime waterfront.
A staggering 81% of all homes sold at or above their listed price and those that sold in the first 10 days (75% of all sales) closed for an average of 110% of their listed price. That increase equated to sellers receiving an average of nearly $200,000 above their listed price at Island’s median sale price.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Condos have remained an attractive and more affordable option for entry-level buyers who might otherwise rent. As single-family home markets become more competitive, condo ownership becomes a more compelling—and many times the only—option for those wishing to begin their homeownership journey.
While the number of single-family homes for sale has been on the decline regionally, Seattle condos experienced a 45% increase in the number of units for sale while Eastside condos saw 23% fewer units for sale compared to Q1 2020. Both Seattle (+18%) and the Eastside (+30%) saw an increase in the number of Q1 sales.
Seattle condos saw a 3% increase (to $476,000) and Eastside condos saw a 9% increase (to $535,000) in Median Sale Price compared to Q1 2020. Fueled by new construction townhome development, South Seattle posted a 56% increase in its Median Sale Price during that same period. On the Eastside, with townhomes providing a solid alternative to lacking single-family homes, Sammamish was a standout with a 16% increase over Q1 2020
51% of Seattle condos and 70% of Eastside condos sold at or above their listed price. Those that were sold in the first 10 days (35% of Seattle and 55% of Eastside sales) sold for an average of 103% of their listed price.
Check out area-by-area details the full condo report.
WATERFRONT
With a meager combined average of only 7 homes for sale (compared to 26 in Q1 2020) Mercer Island and Eastside waterfront headlines could only read that there was nearly nothing available for sale in Q1. The Seattle market was just above typical inventory levels (with an average of 12 homes for sale compared to 10 in Q1 2020) while Lake Sammamish maintained its two-year running low of 5 homes for sale.
While many waterfront homes went under contract in mere days, they did not see the dramatic price escalations in Q1 that the more affordable, non-waterfront market has experienced. In fact, only one sale closed at (a fraction of 1%) above its listed price. While 4 of the 14 Q1 sales closed at 100% of their listed price, a fair amount of price negotiation was far more common.
This top-level overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, provides a glance into the trends occurring in our region over time. It is interesting, and insightful, but in no way replaces an in-depth analysis on waterfront value provided by a savvy broker with years of local waterfront experience.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2021, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and deemed accurate but not guaranteed.
