Despite moments of snow in Western Washington, the local real estate market is slowly warming, as new opportunities arise for both home buyers and sellers. Lower mortgage rates are welcome news for buyers, and low inventory means sellers are starting the year with minimal competition.

King County continues to see residential price gains, with last month’s median sold price of $849,950 up from $825,000 a year ago. Condo prices also rose, up 15% from $465,000 in December 2022 to $537,000 last month. King County is also experiencing a reduced supply of available single-family homes. At the end of last month, inventory stood at 1.3 months, down from 1.6 months at the end of November and 2.0 months a year prior.

In a slightly different dynamic, Seattle experienced a decrease in both inventory and home prices last month. The median residential sold price was down from $879,975 in December 2022 to $850,000 last month. And December ended with 1.7 months of inventory, down from 1.9 months the previous month. While 16% of homes sold above list price in December, that was significantly lower than November, when 29% sold above asking. Seattle condo prices rose year-over-year, from $512,500 in December 2022 to $585,000 last month, with supply dropping 22 percent.

Following a modest decline in November, the Eastside rallied with an 11% bump in the median residential sold price, up from $1,400,000 last year to $1,440,000 last month. Further proof of a warming Eastside market: residential inventory is less than half of what it was last year, down from 2.5 months at the end of 2022 to just 1.2 months at the end of 2023. Mirroring the residential market, Eastside condominiums experienced a healthy 12% price increase last month, up from a median of $565,000 a year ago to $630,000.

Snohomish County was an interesting tangle of contradicting sales data. Median residential sold prices saw a slight year-over-year decrease last month, down from $700,000 to $684,995. This price decrease occurred despite a dramatic drop in inventory. The supply of Snohomish County single-family homes stood at just 0.8 months at the end of December, down from 1.8 months the year prior. Of the four areas reported in this market update, Snohomish County saw the lowest percentage of sold homes that had experienced a price reduction, at 41%, perhaps a reflection of the drastically reduced supply. Another possible outcome of the limited supply of single-family homes: the median sold price for Snohomish County condos jumped 11% year over year, from $469,950 in December 2022 to $523,500 last month.

As we move further into the new year, buyers remain hopeful that interest rates will continue to drop. The inventory of homes on the market has declined from a year ago in most markets, prompting price gains during what’s normally a slower time of year. Overall, the regional condo market has seen sustained activity, with unit sales experiencing only a modest decrease in the face of lower inventory and higher prices.

With regional submarkets exhibiting varying dynamics, it’s more important than ever for buyers and sellers to have a knowledgeable expert at their side. So connect with your Windermere broker to co-create a strategy that’s best for your buying or selling journey.

Amazon’s Housing Equity Fund came calling just in time to spur movement on Jaebadiah Gardner’s vision for an affordable housing project in the heart of Seattle’s Central District. Gardner Global, which seeks to create cycles of wealth for people who have previously been left out of these opportunities, is the recipient of a $4.5 million grant that will support a 122-unit project at 23rd Avenue and Union Street.  Amazon’s support will enable Gardner to go vertical with the project in mid-2025, in a neighborhood that has historically been one of Seattle’s most diverse.

In early 2021, the Seattle tech giant pledged $2 billion toward affordable housing. Since then, the Amazon Housing Equity Fund has focused on regions where its corporate workforce has grown or is planning to grow. As of November, the company has funded 1,300 housing units in Seattle.

Amazon has taken care to handpick developer and housing associations instead of just funding nonprofits or city housing offices in bulk. According to Alice Shobe, global director of Amazon in the Community, leaving the specific details to Gardner Global, in this case, was a conscious effort to allow those who know the community best to own strategy and outcomes.

Amazon has contributed to the development of affordable housing in our region through grants and low-rate loans. These have funded projects that account for almost 4,400 units so far. The company also contributed $25,000 in support of the Seattle Housing Levy, which voters approved in November.

Playing the role of a hands-off financier and partner, the Amazon Housing Equity Fund will help the Gardner Global project move along more quickly, avoiding the unpredictable timeline that developers often face. Ultimately, Amazon put the group in a position they would not otherwise be in: one step closer to decreasing the wealth gap with communities of color and creating a new wealth cycle instead.

This post was based on information found on Puget Sound Business Journal.  

By 2050, roughly 4,135 existing Seattle buildings larger than 20,000 square feet must cut their greenhouse gas emissions to zero. The Seattle City Council passed legislation on Tuesday, December 12th, enacting the Building Performance Emissions Performance Standard, or BEPS. 

BEPS will require skyscrapers, low- to high-rise buildings, multifamily residences, retail spaces, restaurants, churches, schools, universities and community centers that fit the criteria to meet the proposed bar. It’s a timely measure as buildings account for 37% of Seattle’s total core emissions, behind cars and aviation, according to city data.  

The standards, which will roll out gradually over time, will reduce existing structures’ dependence on greenhouse gas sources, primarily oil and natural gas, including fossil fuel-powered furnaces and water heaters. Several recent projects have already been upgraded to curb their climate impacts.  

A multifamily affordable housing unit cut its energy use by 35% and its fossil fuels by 100% with the installation of heat pump water heating, new roof insulation, heat pump cooling in the community  room, and an energy recovery system. Similarly, the Washington State Department of Services for the Blind replaced windows, upgraded lighting, and installed a heat pump water heater and heat pump heating and cooling, cutting energy use by 70% and fossil fuels by 100%.  

With this impactful legislation, Mayor Harrell hopes that other cities are inspired to follow suit in taking collective action to reduce urban zones’ heaviest contributions to climate change.  

This post was based on information found on GeekWire and Puget Sound Business Journal. 

Just like December temperature variations, our local real estate market continues to feel up and down. Interest rates, regional economic conditions and seasonal market shifts have meant rising home prices in some areas and drops in others. While the expected winter slowdown means overall lower inventory, buyers are still willing to compete for plum properties in a diminishing pool of available listings.

A slight decrease in interest rates has raised cautious optimism in our region. Interest rates fell to around 7.2% as of December 1, compared to 7.8% in October. A continued trend in this direction could signal some welcome positivity in the market as we move into the new year.

In King County, the expected decline in winter inventory is pushing up year-end home prices. The region saw a 7% year-over-year increase in the median residential sold price, from $827,000 in November 2022 to $885,500 last month. Buyers are still showing up: there’s steady demand and potential competition for each available home that’s in good condition and well-priced. King County condos also saw a year-over-year price increase, with the median sold price up 4% in November to $485,000.

Seattle saw a 5% increase in the median sold price of a single-family home, up from October’s $900,000 to $944,000 last month. The market kept some momentum in November, with 48% of Seattle homes selling at or above asking price and 79% going under contract in 30 days or less. Condo prices saw a 21% year-over-year jump, from $480,500 in November 2022 to $582,750 last month. This price growth flew in the face of significant supply, at 3.4 months of inventory.

The Eastside median residential sold price experienced a modest decline in November, down 1% from October’s $1,420,000 to $1,400,000 last month. However, the November price was still up 6% from November 2022, while 75% of sold listings went under contract in 30 days or less. Residential inventory remained fairly flat on the Eastside, increasing slightly from 1.5 months in October to 1.6 months in November. Eastside condo prices increased last month, with a median sold price of $620,000, up from $569,500 in November 2022.

Snohomish County saw a year-over-year bump in prices last month. The median sold price for a single-family home rose from $700,000 last November to $725,000 this November. Supply stood at just 1.3 months at the end of the month, down 32% from this time last year. Condo prices also rose, from $507,500 in November 2022 to $521,209 last month.

As winter unfolds, it’s crucial for buyers and sellers to work with a knowledgeable broker to navigate this churning real estate market. Together you can create a strategy that best supports your real estate goals for the new year.