Two Overlooked Facts about Seattle’s Real Estate Market

You’ve probably read some headlines recently about real estate prices dropping, fewer homes selling, and other signs of worry with Seattle’s real estate market. If you’ve been reading this newsletter for a while, hopefully you understand some of the context behind this.

For instance, a couple months back we showed some data revealing that though prices have come down from their summer 2022 historic highs, prices are still higher than before that surge began. And many homes are still selling almost immediately after going up for sale.

Here are two more interesting facts to consider.

First, because of zoning laws shifting and property owners starting to get creative with their lots, Seattle, Kirkland, and other King County cities are starting to build smaller homes, multiple homes, ADUs, and DADUs. On lots that used to have one large home, they’re now building two or three smaller ones.

What does this mean?

It means more homes on the market, but they’re smaller. That means they sell for less money than one larger home would have. That makes the average sale price go down. But because more people can now buy homes, it doesn’t indicate a depressed market.

You can see this when you look at the right set of data. Yes, overall median prices have come down a bit. But look at this graph.

The average price per square foot has gone up decisively in that same time period!

Why? Because two homes half the size of a larger home won’t sell for half the price of that home. They’ll sell for more than half. So the value of real estate is going up when you look at the sizes of the homes, even if the overall data appears to be trending the other way.

The second fact to remember is that interest rates are about double what they were a year ago. People who bought or refinanced when rates were historically low are now looking at the higher rates they’d have to pay if they sold and bought a new home.

That makes some people hesitant to sell, even when it might still be in their best interests to do so. The hesitancy is understandable and real. But what you really need to think about is your life situation and the type of home that is best for you at this time. Maybe your best move is to stay put. Or, maybe you can shift to a slightly smaller home and still pay less for the mortgage, even with a higher rate.

If you know someone in this situation who is looking to sell, please send them our way – by email, phone or through our website weisbarth.com/referral. Our 5-step system lays out the plan for selling fast and for the most amount of money. And a good portion of our income then goes to support the kids at Childhaven.

Two Small Moments, Two Big Wins

A teacher at Childhaven was putting down a 3-year old for a nap, and the little girl clung tightly to her doll. As she snuggled with the doll against the pillow, she whispered to it, “It’s OK. You’re safe. You’re at Childhaven.”

On a different occasion, another teacher watched as the staff set up tunnels and obstacle courses for a bunch of kids so they could crawl through and have a blast. Of course, they loved it.

Both these stories give a glimpse into the small wins that happen each day at Childhaven.

The girl whispering to her doll showed how kids will treat their precious things just like they are treated. She was talking to her doll the way she feels in real life – loved and nurtured. Later on, kids like this grow into confident and compassionate adults who will care for their kids and break the cycle of abuse, which is often generational.

The kids crawling through obstacles are learning to shake off some of their aggressive behaviors and dispel their anger. These activities calm them down and help with cognitive development. Later on, the same kids who had been hitting and kicking in their anger a few days before began talking about their feelings, and solving problems with their teachers and classmates.

Every time I hear another story like these, I’m so thankful to be supporting such a great organization. We give Childhaven a portion of the proceeds from every home we sell, and these are just two more examples of why. If you feel moved and want to donate to Childhaven directly, go to donate.childhaven.org.