2018 Puget Sound Real Estate and What’s to Come in 2019
by Michael J. Link
Wow 2018 came to an end with a “softening” tone for the Puget Sound real estate market. Just like the previous two years as I forecast, the first half of 2018 was much more robust than the second half. Much of the appreciation came in the first 6 months.
WA and Seattle have outpaced the nation for a few years but the reality of too many new apartments on the market, great reduction in Chinese overseas buyers, rising interest rates and uncertainty about the tech market with Amazon announcing a HQ2 on the East Coast caused the local market to “pause”
I am already getting many emails and calls regarding “what shall we expect in 2019?”
interest rates have dropped ½ a point in last two months and I can tell already that buyers are starting to come out again
Economists expect Seattle area to fare better than rest of country
Did the market prices peak in June of 2018? Yes so don’t expect wild rises this year instead more moderate appreciation such as 5-6%
The rental market-Too many new apartments so rental rates will continue to drop in 2019
Second home market in places like Leavenworth look strong for bulk of this coming year
2019 will behave differently than the past 3-4 years. Whether you are thinking about buying or selling or know someone who is talking about it, now is the time for us to start the conversation and plan a winning strategy in this moving market.
Chart below is key Puget Sound neighborhoods 2018 sales trends. Yes much more listings and fewer sales but appreciation growth continues.
Chart below is actual sales trends King county past three years. Many sellers waited for when they “thought” the peak of market was here, which was in the first half of 2018, however look how many waited to hear that and then list in the second half of the year. This chart shows the typical end of year slow down in sales but a significant rise in new listings, the highest rise since 2012. Except because of the uncertainty in the market and rising rates buyers went to the sidelines in bunches in the second half.
I think buyers are coming back out now that rates have dropped.
Chart below is for “condos only” in the same key area. Note that for the year, condos nearly caught up with home appreciation rates and in some areas like East Bellevue, Kirkland, Ballard and Lynnwood areas condo appreciation was around 20% for the year. Yes days on market are a little longer and fewer listings but buyer demand is still going to be strong in 2019
Top 10 Home Trends in 2019
Here is a great article on the top ten home trends for 2019
It’s January-This is the best time to have a conversation on this. Last year, my clients and friends that started in January had record setting sales in March and April
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