Well, it’s been a slow month, and historically, this is not out of the ordinary. For reasons that elude me, May is a little bit sluggish. However, Seattle's home prices have marched forward as usual.
A quick glance of our “Seattle Proper” neighborhoods (which I define as North to Maple Leaf and South to Seward Park) shows the number of sold units has dropped as compared to April (although the month isn’t officially over yet). April saw 618 sold homes compared to May’s 454 sold homes. This could catch up in the coming 5 days, but it’s not likely if you ask me.
Here is how the numbers looked:
Median Size: 1500 sq. ft. | Median bed/bath: 3/1.75 | Median list price: $599,950 | Median Sold: $625,001
Median Size: 1500 sq. ft. | Median bed/bath: 3/1.75 | Median list price: $599,950 | Median Sold: $636,000
While list prices remained the same from April to May, the sold prices have increased by $11,000 in one month. (YES, you read that right. $11k. YIKES. So, yes—one month of price hikes adds $11K to your mortgage…)
My prediction is that June’s Seattle real estate market will be BUSTING as it usually is. Prices are still climbing, but so are interest rates. This could add an interesting element to my next update.
The Fed is planning on making a few announcements regarding interest rates next month, and it’s expected that Janet Yellen will keep the base rate the same this quarter but potentially raise it in October. This could cause interest rates to increase. For now, we should remain relatively similar. However, the market is speculating on the news, and any anticipated news from the fed causes temporary increases in our mortgage rates. This too shall pass.
Octobers news might be very different and a interest hike may be here to stay. Time will tell.