Photo courtesy Evan Parker, Digital Homeshow

We’re starting to see some good news in the condo market in Northeast Seattle. Volume is up 52% as compared to last year when only 21 properties were under contract. However, prices are continuing to slide and are down 9% from a year ago.

 Last year’s median price for sales September-November was $210,000. This year the number has dropped to $184,000. Much of this drop can be attributed to: 

The pool of Buyers has shrunk. Many first time Buyers (typically a young professional in their thirties) and Baby Boomers (who are downsizing) are choosing to rent VS buy.

These potential Buyers report that they’re choosing renting over owning because they’re fearful that if they purchase a property it will decline in value and not recover.

Short sales and foreclousres are having a big impact on our market. This fall nearly 45% of all listings in north east Seattle were listed as either short sales or bank owned.

Sellers are affected by these listings because they sell for less than a typical property. Buyers are able to use this sales data to negotiate. If we were in a more neutral market – one where the number of Buyers and Sellers was more equal Buyers couldn’t use this tactic.

 Unfortunately, our market has had and I believe will continue to have far more condos available than there are Buyers. Consequently, Buyers are more able to control price.

Successfully selling a Condo in today’s market is all about price! Properties that Buyer’s perceive as being over priced are sitting on the market and many simply aren’t selling. Even units that are in excellent condition will sit if they are not priced at market.

That said it’s an excellent time for Buyers and particularly investors to consider purchasing a condominium because not only prices are low but current interet rates are now as low as 3.91%.

If you have a question feel free to call me at 206.915.1076 or post a comment

Mary