SEATTLE HOUSING MARKET COOLS? Not that much, unless you are a luxury home buyer. My recent transactions, where the home is well priced, have still been in multiple offer situations - however the bidding has been stopping short of seller "best case" expectations. One recent shift in the marketing of homes by agents has been a move away from "offer review days" where buyers are asked to take their best shot at a new listing. It is no longer guaranteed that a market price will automatically result in a bidding war. That's great news for home buyers, but will force sellers to research their offering price a little more carefully.
My perception of the current residential market is that sellers are still holding on to the belief that they are in a strong seller's market, and that buyers are beginning to feel that the market is over-priced, and it is time to take the sellers down a notch. Buyers are expecting their agents to negotiate prices down if a home has been on the market for over a week. Sellers do not see it that way, and are prepared to "wait for the right buyer" or have their agent do a better job of marketing - both tactics being debatable, especially in an entry level home. It may be that longer market times are in store for unrealistic sellers.
Another area of change is the investor market - higher interest rates are pushing cap rates further into the ground, making cash flow with a moderate down payment impossible. On the other hand, condo conversions and townhome construction are still going full speed ahead with no shortage of buyers. A savvy investor will be looking for lots that can be short-platted, and parcels zoned for multi-unit construction. Even more lucrative are parcels that can be developed for mixed use residential and commercial development. "Flippers" (investors who buy run down properties and fix them up for a quick resale) are having a hard time finding properties that are an easy flip. Prices are still too high, and construction costs keep rising.
Need some assistance navigating through the housing market? Call Mary Schile at 206-601-4377!