The housing market numbers are in for the third quarter of 2018 (the months of July, August and September) and Realogics Sotheby’s International Realty has analyzed the data. After seemingly endless months of the same headlines touting historically low inventory and rapidly appreciating home price values, the story has changed in the Puget Sound region as inventory growth and a slowdown in activity has given buyers a sigh of relief. Below we’ve outlined how this impacted the market in Q3-2018 on the Eastside.
Single-family home prices on the Eastside continued their upward gain, increasing 7.11% from Q3-2017 to Q3-2018, a number that was far below last year’s report, which saw a 14.80% increase from Q3-2016 to Q3-2017. Though buyers are feeling a sense of relief at this slowdown, they continue to raise concern over rising mortgage rates, which are expected to rise again before the year’s end.
Economic fundamentals remain strong in our region, and slowing growth may be attributed more choices for buyers and a less competitive atmosphere. At the end of the third quarter there were 1,523 single-family homes for sale, which was up just under 62% compared to this same time last year, however we are still very much in a seller’s market. Though Seattle and Bainbridge Island reported slight increases in market times, homes on the Eastside continue to sell in less than one month.
A brief look at Seattle single-family homes reveals similar trends, with inventory up 75% compared to Q2-2018 (at 2.1 months), higher than it has been since the third quarter of 2012. A healthy supply has contributed to a slight addition to the average days on market, which increased from 15 in the third quarter of 2017 to 18 in the third quarter of 2018. Home values rose at a slightly lesser rate in Seattle than the Eastside, increasing 5.2 percent compared to Q3-2017.