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How’s the Market? Q2 2024 Review of Seattle Area Real Estate
Median sales prices were up across the region in Q2 of 2024 compared to this time last year, with the Eastside posting the highest year-over-year appreciation. What should you know that the numbers don’t show? We’re back to a typical PNW seasonal market. Higher temps typically lead buyers to lose focus. There is still quality inventory hitting the market. If you don’t need to sell in order to buy, this summer is the perfect opportunity for you. There are some great deals out there, and this fall election season will be in full swing which will surely have an impact on all markets.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
The median home price in Seattle is up 8% year over year to $970,000! We are just 3% shy of the peak median price of $1,000,000 set in Q2 of 2022. With steady growth over the last couple of quarters one might assume that we’ll hit peak prices again shortly. This gain isn’t because of low inventory (up 18%) or a rapid growth in demand (sales are down 4%), it’s likely chalked up to interest rates under 7% AND buyers got tired of sitting on the sidelines. In all cases, the first half of this year has been a breath of fresh air.
Lake Forest Park saw the biggest drop in total number of sales at 34% BUT they also saw the highest jump in median price: up 19% to $1,015,000. Their neighbors to the West, Richmond Beach and Shoreline, saw the largest rise in sales with a 19% gain in total volume AND the only area to post a drop in median price. Down 1%. Madison Park/Capitol Hill is the only other area of the city to post double digit gains. All in all a robust spring quarter.
76% of homes sold for at or above list price and 71% of homes sold in the first 10 days on the market for an average of 105% of the list price. This tells us, if you find “The One,” don’t sleep on it, and be prepared to pay. Especially in the $800,000 to $1,500,000 price band.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
Everything’s coming up roses this spring on the Eastside. Home values have soared 16% year-over-year, with the median sale price reaching $1,675,000. This reflects a 4% gain from the peak in 2022. (Not all metro King County areas have reached peak prices again.) This impressive growth reflects a thriving market, with an average home selling for $700 per square foot, up 14% from last year. What’s even more fun? A whopping 78% of homes sold within the first 10 days of listing, showing just how bullish buyers are on the market.
Neighborhoods across the Eastside are shining. Eastside South saw 251 homes sold, marking a 37% increase, with a median sale price of $1,799,000, up 20%. Meanwhile, West Bellevue’s median sale price jumped to $3,574,000, up 13%. Mercer Island continues to charm buyers, with homes selling for an average of $906 per square foot and a median price increase of 18%, reaching $2,585,000.
Overall, the Eastside market is buzzing with activity. With 1,773 homes sold (a 17% rise YoY), it’s clear that both buyers and sellers are seizing opportunities. The increase in new listings by 29% compared to last year adds to the market’s appeal. East Bellevue and Redmond also show significant growth, with median sale prices climbing by 7% and 27%, respectively. The Eastside has staying power post Covid, clearly.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Home prices have seen a remarkable year-over-year increase of 18%, with the median sale price reaching $2,585,000. While this is a great sign for the health of the market, we’re still 5% below the 2022 peak. Affordability seems to be what is driving the market forward. Interest rates are down YoY. In relation to Q1 2024, prices are up a modest 2.5% which feels to us like: healthy sustainable growth.
Q2 2024 saw only a 3% rise in new listings compared to the same quarter last year, while there were 3 fewer homes sold in 2024 vs. 2023. Inventory and absorption remains relatively flat year over year. So it might be surprising that there is a robust demand for Mercer Island properties, with 66% of homes sold within the first 10 days of listing and that 18% rise in median price. Lower asking prices coupled with slight interest rate relief seem to be the explanation.
Taking a peek at the neighborhood snapshot reveals varying performance across different Mercer Island areas, yet the overall trend remains positive. For instance, the Northend saw 15 homes sold at an average of $810 per square foot, with 73% of these sales occurring at or above the listing price, and 60% sold within the first 10 days. On the higher end, East Seattle and The Lakes neighborhoods showcased exceptional performance, with all homes sold at or above the listing price and achieving 100% sales within the first 10 days. Overall, the average price per square foot for the island increased year-over-year, reaching $906.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
It’s good news only in the condo market! Seattle condos saw modest yet positive growth, with the median sale price rising 5% year-over-year to $636,000. The average price per square foot climbed to $649, a 7% increase, showing strong market demand. Condos in Ballard and Green Lake led the charge with a 31% increase in sales volume, while Downtown-Belltown, despite a 14% drop in sales, saw prices rise by 10%. Demand seems to be all over the board, but we’re still reporting the highest median sales price ever for Seattle condos!
On the Eastside, the market was buzzing with activity, in large part due to inventory being double what it was in Q2 of 2023. Redmond condos were the stars, with sales skyrocketing by 65% and the median sale price jumping 45% to $850,000. West Bellevue followed suit with a 38% increase in sales and a 33% hike in price per square foot, reaching $1,064. The overall Eastside market saw a 22% rise in sales and a 13% increase in the average price per square foot, now at $660.
It’s important to note that 62% of all condos selling at or above their list price across Seattle and the Eastside, showing a competitive market where buyers are eager to snap up properties quickly. With more new listings than last year there are plenty of opportunities for buyers and sellers alike. Whether you’re eyeing a trendy spot in Ballard or a luxurious condo in West Bellevue, the upbeat condo market promises exciting possibilities for everyone!
Friendly PSA: PLEASE remember that there is a ‘first rung’ of the property ladder. CONDOS create an affordable option to start building wealth at a younger age. It’s an important real estate product that has been overlooked. I am hopeful that enterprising young homeowners return to the condo market in droves this next real estate cycle.
Check out area-by-area details the full condo report.
WATERFRONT
Lake Sammamish led the pack in Q2 with a whopping 15 waterfront sales, while the Eastside was close behind with 12. Of Seattle’s 9 waterfront sales, all but 2 sold in less than 10 days. It was a similar story with Mercer Island’s 6 sales—all but 1 sold in less than 10 days and 4 sold above the asking price. Meydenbauer took the crown for largest waterfront sale, fetching $21.3 million for a truly stunning 1-acre estate with 164 feet of waterfront and a palatial 11,000+ sq. ft. home. The most modest waterfront sale was a Rainier Beach gem on 50 feet of waterfront that sold in just 8 days for $1,725,000.
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 with your trusted professional.
Main photo courtesy of Wing Walker Aerial Photography
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 2024, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and Trendgraphix, and deemed accurate but not guaranteed. Seattle cover photo courtesy of Codi Nelson and HD Estates Photography. Eastside cover photo courtesy of Donovan Realty Group and Tucker English Photography. Mercer Island cover photo courtesy of Yvonne Willard and Ryan Slimak, Clarity Northwest Photography. Condo cover photo courtesy of Luke Bartlett and Matthew Gallant, Clarity Northwest Photography. Waterfront cover photo courtesy of Kathryn Buchanan and Brandon Larson, Clarity Northwest Photography.
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.
