SEATTLE — A new report from real estate website Zillow gives people in western Washington a glimpse into how this is truly a “Seller’s Market”.
Sixteen cities in the Seattle metro area have a typical home value of more than $1 million. This is an increase from 2021 when ten area cities were on Zillow’s list.
While home values are rising, so are home prices.
“Last month, the median sales price in King County was $815,000, which is up 10.3% from last year," explained Zach McDonald, a realtor with Real Property Associates in Seattle. “If we look at the average, though, the average is quite a bit bigger. The average sales price in King County last month was $1,078,000, which was a 17.8% jump.”
On average, homes in King County sell 5% to 6% above asking price, McDonald said. However, taking a closer look at specific areas of the county, homes are selling for 15% to 20% above asking.
McDonald said most homes in King County have been selling well above the asking price.
“That's the average, which means some are 25, 30, even 40% over asking price,” McDonald said. “Over in Redmond, Kirkland, Bellevue, you have to be prepared to be paying 200, 300, 400, 500,000 over asking price to be able to be successful in those markets.”
Homebuyers are also competing with dozens of other people when trying to close a sale on a home.
“There aren't enough houses for all the buyers, and there are 20-30 buyers for every house,” said McDonald. “I think another thing that's happening more recently is interest rates have been going up a little bit more. So, there's this fear of missing out as well that's starting to creep in.”
When people consider making an offer, there are three factors McDonald recommends they consider in a negotiation.
“You've got the price you're paying, the terms in the contract and contingencies,” explained McDonald. “In the past, you could remove contingencies or make your terms more favorable to the seller, and sometimes not pay the highest price.” However, McDonald says that’s no longer the case.
“It's so competitive that you really have to check each box to be successful. Occasionally, you can win without having the highest price. Right now, you really need to have all three of those things in your favor to be successful. It's that competitive.”