Eastside weekly wrap-up: rates and listings have big drops the same week
Interest rates drop .5% – the biggest news for the real estate market is definitely that interest rates dropped .5% in one day last week and are currently in the mid-6% (6.62% right now on a 30-year fixed rate). I think we’re all holding our breath to see if that’s a momentary drop or if we’ll have a sustained stretch of lower rates. It’s doubtful they’ll drop as quickly again so soon but buyers will likely be excited by rates below 6.5% if they can get there.
New listings drop 32% week-over-week – I’m still flipping a coin on if this is a surprise or not. With only 94 new listings across the Eastside this week, it seems like sellers are catching on to the lack of buyers coupled with the quickly approaching holidays. However, it’s likely more surprising that more sellers came on the market the week previous. If the drop in rates hold this week, we might see new listings to stay flat or tick up slightly as the last sellers try to get on market and sold before the end of the year but I expect we won’t see a week of more than 100 new listings until 2023.
42 days on market before going under contract – buyers put 92 homes under contract last week (also a drop of 14% week-over-week) but very few of them were listed the week prior. The median days on market for homes going under contract last week was 42 days. Buyers are definitely aware of the market and are patiently waiting for the right house and price to come along. That said, 15 homes did find a buyer after being on the market for a week or less, so if you see the right home don’t wait!
Inventory check – There are still 1,010 active homes for sale across the Eastside so lots of choices for the handful of buyers out there. The median days on market for all active homes is 52 days and 47% of those have had a price reduction. The median price reduction on the Eastside is 4% and 1 in 10 sellers have dropped their price 15% or more. The biggest reduction is one listing in Renton that has dropped it’s price 43% ($510k)!!
Homes that caught our eye this week – My favorite home of the week is this $4.1m west-facing Mercer Island home with a loft ADU over the garage and a shared waterfront. However, I can’t get over the 20-foot vaulted ceilings, lots of windows, and sky-high built-in shelves in this Newport Shores home. For new construction, don’t miss this $6m European country estate in West Bellevue.
Some notable vacant lots on the Eastside – this west-facing lot on Mercer Island is permitted and the foundation is poured and this lot in West Bellevue might set a record for highest $/square foot but the views would be pretty good when you’re done building!
For condo hunters, there’s a 1-bedroom resale opportunity at Mira Flats, one of the most recently completed buildings in the heart of Bellevue.
And in a sign of the market conditions, sellers are getting creative at every price point. There’s a $3m home in Lakemont with a lease-to-own option available!