Average Seattle Home prices January 2009

24th February

2009

written by robgraham

Everyone wants to know what is happening with Seattle home prices. Here are two charts showing single family homes and condos separately.

Single family homes took another dip in January to $386,000. The lowest price we have seen in quite some time. Keep in mind that a dip in January is quite common as it is typically the slowest month for real estate closings. January did however see a dramatic increase in pending transactions as buyers encouraged by an impending stimulus package and perhaps inspired by a new president, came off the sidelines and bought up a significant amount of inventory. This should help stabilize the decline and may signal improvement as we head into spring.

Condo numbers look like this:

A slightly different story for condominiums in Seattle. While we did see a drop off from December to January similar to single family homes, the median home price for condos was above the levels seen for most of last year. The median condo price for January was $324,000.

After a dip in the fall, buyers seem to be buying condos again. This is good news for construction and the condominium market as a whole. It would appear that in the wake of the current financial crisis, Seattle home buyers are more willing to consider buying a condominium as an alternative to buying a single family home. Recent tax incentives to first time home buyers will only make this trend more attractive.

Myself and many of my colleagues are seeing a dramatic increase in activity. The phone is ringing and many buyers are beginning to emerge from hyphenation. Some are lured by the $8,000 first time home buyer credit that exists for 2009, but most just feel that the recession has to end at some point and that we may be at or near the bottom.

They tend to still be cautious though. Seattle home buyers are doing their homework and making smart purchases, asking for less then the listing price and negotiating for the maximum seller allowances on closing costs.