Over the recent months, we have all felt a shift in our real estate world (locally or across the country) with properties staying longer on the market, prices dropping & fewer sales. This change happened so quickly that homeowners & brokers are still adapting to this new reality.
COVID proved to be an exceptional time for our local luxury real estate as buyers around the Greater Sound Area re-discovered our Gem of the Sound’s attributes: convenient location, stunning views, usable waterfront, and definite value. With the sudden rise of interest rates, stock market instability & people returning to more normal working patterns, real estate has been returning to a balanced self.
Traditional Versus Luxury Real Estate
While high-end buyers have not been affected by interest rates the same way as first-time home buyers, they are still looking at the general outlook of the market and are being much more conservative in their buying ways. In other words, they know what they want and are willing to wait for it until they find that perfect fit.
We are observing that homes that would have gone off the shelves in a matter of hours some months ago are now staying longer unsold (if not under contract within the initial ten days of being listed), giving opportunities for buyers to negotiate their purchases. This is definitely a better time to purchase your next luxury piece of real estate. As a buyer, you can negotiate terms such as price and terms. Inspection contingencies and homes selling for their list prices are a new reality.
You will want to find your sweet spot in the market as a seller. The more buyers are interested in your property, the more leverage you will be able to generate. Buyers are always ready to pay more for a desirable property than other buyers want; the key is in pricing and presentation. With the right initial strategies, listings still experience competitive situations & multiple potential offers (just not at the same level).
The New Points Of Resistance
From our latest research, we found that:
- $2M+ is experiencing pushbacks from buyers. If you are a seller, consider listing below that price point to maximize your activity and chance of selling within the optimum time on market (within the first ten days on market)
- $3M+ was always a hard line for our Burien market, and it seems that we are now back to this pre-COVID reality. If you were going to list around the $3M, consider launching at $2,895,000 instead.
Past 2 Months’ Sales and Activity
10 active listings from $1,625,000 to $2,500,000
4 pending sales from $1,550,000 to $2,995,000
Median days on the market 67
Median List price $1,947,000
Median Pending price $1,825,000