Real Estate Market Update - May 2024
Real Estate Market Update
The Seattle-Bellevue real estate market continues to follow seasonal trends into May, which is generally the peak of the selling season. The supply of single-family homes on the market (For Sales) month over month is increasing as is the quantity of properties going under contract (Pended) and Sold. During the 2024 sales season, King County has been a consistent Seller’s market for single-family homes.
The median single-family home sales price in 2024 increased 16.7% from January 2024, $852,500, to April 2024, $995,000. Year-over-year median home sales prices increased 13.7% from April 2023, $875,000, to April 2024, $995,000. Seasonal sales activity generally begins to decline after May or June with a possible correlative decline in home values of possibly 8% to 9% until January.
Mortgage rates seem to have stabilized since mid-April. Currently, a 30-year fixed rate mortgage is approximately 7% based on a minimum downpayment of 25% and a credit score of at least 765. As consistently reported in 2024, an increasing number of Buyers are adjusting to the reality of higher rates and moving forward to pursue lifestyle goals rather than defer them. The market continues reverting closer to the long-term 30-year fixed mortgage rate average of 7.74% for over 50 years. As reported in March, I’m not expecting any rate decreases in 2024.
Guidance for Buyers
The pool of ready, willing and able Buyers exceeds the supply of homes for sale, which is at historic +10-year lows. Be prepared for the need to pre-inspect properties in a short amount of time and negotiate competitive offers that escalate in value. I would be happy to guide you through the process.
I do not recommend trying to time the market based on anticipated interest rate decreases, assuming you intend to own the home for five years or more. It’s about time in the markets, not timing the markets.
Guidance for Sellers
The market generally softens beginning in mid-June (referred to as the “summer slump”), but it depends on the property and location, until there’s a spike in activity in mid-August and cools from October through December. Keep in mind that you will likely require several weeks to schedule trusted contractors to prepare the property, if necessary, and stage it. Stagers may be booked out four to six weeks and photographers three to four weeks. I understand that any related sales expenses (e.g. brokerage fees, listing preparation costs, staging fees, etc.) may be deducted from your taxable gain. Please consult with your Certified Public Accountant (CPA) to confirm. See this article, Sold Your Home This Year? Consider Writing Off Some Common Expenses.