Seattle’s January Housing Market & 2021 Look Back
January Market Pulse
Happy New Year! We are “off to the races” when it comes to Seattle and King County real estate as prospective buyers resume their home searches that were paused during the holiday season — and many enter the market as they embark on their home-buying and investment goals for 2022 and beyond.
Assessing the market around me thus far in 2022, I’m seeing the following trends:
An approximate 10% increase in everything: purchase prices, escalation increments, earnest money.
More aggressive offer tactics, including but not limited to buyers:
o Submitting early offers (this sometimes works, sometimes doesn’t*) in order to swoop a home off market
o Waiving financing and inspection
o Releasing non-refundable earnest money (and more of it)
o Closing their purchase in escrow faster
* It’s better for sellers to wait until offer-review day to let offers stack up and compete against each other for a better final result for the seller. This is something I educate my clients about when we meet to discuss listing their home and smart tactics to garner a higher sales price.
Current Inventory: 0.24 months (six days) of inventory — essentially, if all the homes currently on the market sell, they will sell out in six days.
The Northwest Multiple Listing Service (NWMLS) released their latest press release and December 2021 statistical data to the public on January 6, 2022. Notable highlights are excerpted below.
“‘Smart buyers are making their best offers using pre-inspections, family support in the form of cash loans, bridge loans, leveraging 401(k) accounts, and other resources,’ according to Dean Rebhuhn at Village Homes and Properties. Mortgage interest rates are the wild card, he believes. ‘How much will they rise and what effect will they have on the market?’"
Economists and industry pundits project 2022 will follow a pattern similar to 2021 in terms of inventory and price appreciation. Some current buyer demand is being driven by a forecast of three possible rate hikes in 2022; buyers are trying to capitalize now on what may be the lowest interest rates we see this year. It’s never too early to connect with a reputable local mortgage lender to discuss your financing options as you look to enter the market or right-size your current living situation. In addition to my husband Caleb Johns, I work with a roster of reputable lenders who will be honored to earn your business. Don’t hesitate to reach out if you’d like some names and contact information.
Year-End Market Data at a Glance
King County:
Dec. 2021: 395 listings
Dec. 2020: 1,086 listings — 63% reduction year-over-year (YOY)
Seattle:
Dec. 2021: 167 listings
Dec. 2020: 586 listings — 71% YOY reduction in homes on market
We are seeing an average of $100,000 more in average sale price across the board in Seattle.
Lake & Company: Founded in 1982, Lake is celebrating its 40th anniversary this year! My Lake broker colleagues and I are experienced professionals with high level of ethics who have similar standards of practice and care. We discuss topics and tactics as we collaborate and learn together, and think of ourselves as a close-knit family.
Lake is ranked #33 in Washington State in 2021 out of 2,300+ total brokerages; in King County, Lake ranked #20 out of 1,100 brokerages.
Lake is the #5 most-productive office in Seattle, with $851M in sales in 2021.
My ranking: Ranked #7 (out of approximately 100 Lake brokers) in closed sales in 2021.
J. Lennox Scott, chairman and CEO of John L. Scott, described the 2021 market as “truly historical” and expressed his optimism for 2022. "Fresh on the heels of the holiday season and snowy weather, the local market will see continued strong buyer demand, multiple offers, and premium pricing. This year is poised to be another great year in residential real estate."
I echo Mr. Scott’s sentiments as I look ahead. It was an honor to help 37 families in 2021, and watching their successes as they embarked on their next adventures and chapters is one of the many joys of my profession. If I can help you as you evaluate your real estate and investing goals, please reach out to me via text, email, or phone.
Best,
Lara
