Popach Group Newsletter - Q1 2023

Popach Group Q1 2023

Pulse on the Market

The Seattle real estate market saw continued growth in Q1 2023, with rising prices and low inventory levels. The median home price in Seattle reached $850,000, a 12% increase from the same period last year. Despite the higher prices, demand remains strong, with homes spending an average of just 20 days on the market before being sold. One factor driving this demand is Seattle's strong job market, which continues to attract young professionals and families to the area. However, the limited inventory of available homes has led to increased competition among buyers, with many properties selling for well above asking price. Newly released statistics from the MLS for February show upticks in new listings, pending sales, closed sales and median prices compared to January, but when compared to the same month a year ago, figures for those metrics declined: Brokers added 5,231 new listings of single family homes and condos to inventory last month, about one-third fewer than twelve months ago. Pending sales declined 19%, from the year-ago total of 7,697 to 6,230. Year-over-year (YOY) closed sales dropped 17.3%, from 5,147 to 4,258 transactions. Median prices slipped 1.7% areawide, from $585,000 to $575,000. J. Lennox Scott, chairman and CEO at John L. Scott Real Estate shares that "Unsold inventory virtually sells out in the more affordable, mid-price and into the upper end price points." Scott recommends buyers become “buyer ready” to ensure they get the home of their choice. Frank Leach, broker/owner at RE/MAX Platinum Services shared that “Many homebuyers are making their buying decisions now while inventory is available, and they’ll refinance at a later date,” Leach remarked. He noted the midrange market continues to see multiple offers for homes that are priced correctly. Mike Larson, managing broker at Compass Tacoma said interest rates are crimping listing activity. “The reason there’s so little inventory is because sellers are worried about finding a replacement home and are reluctant to give up their sweetheart 3% and 4% mortgages.” Matthew Gardner, chief economist at Windermere Real Estate shares that "There are homeowners who are choosing not to sell so they don’t lose the historically low interest rate they have on their current mortgage.” Brokers also expressed confidence in the luxury market, with about 18% of the homes and condos that sold last month in the King-Pierce-Snohomish region commanding at least $1 million. “The luxury home market is experiencing elevated buyer traffic, as the start of the luxury season begins in earnest,” reported Scott. John Deely, executive vice president of operations at Coldwell Banker Bain shared that “Overall, with new listings, pending sales and closed sales all up from January, the market seems to be trending in a direction that fits with a normal seasonal market." Overall, the Seattle real estate market looks to remain competitive throughout the rest of 2023, with low inventory and high demand driving prices upwards. Vlad Popach Website

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POPACH GROUP ACTIVE LISTINGS

West Lake-Sammamish 4008 173rd Lane Southeast 6 BD 5 BA 4527 SF $2,950,000 Snoqualmie 9730 354th Avenue Southeast 4 BD 4 BA 4300 SF $2,450,000

Northwest Bellevue 10513 Northeast 26th Street 5 BD 7 BA 4914 SF $4,750,000 Langley 4380 Starlight Lane 3 BD 2.75 BA 2836 SF $1,700,000

Capitol Hill 201 23rd Avenue East, Unit B 2 BD 2 BA 1089 SF $725,000 Northwest Bellevue 9833 Northeast 25th Street $2,750,000 West Mercer Island 5236 West Mercer Way $2,199,000 View More Active Listings

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Stay in the Know CNBC:Mortgage refinance demand jumps 18% as interest rates drop Real Trends: Growth in pending home sales points to strong buyer demand Realtor: 2023’s Housing Market Is Looking Up: 3 Things That Should Give Homebuyers Real Hope CNBC: Compass CEO Robert Reffkin joins 'Closing Bell'

PREFERRED VENDORS

MORTGAGE Slavic Popach | Casey Oiness | Jordan Flowers RENOVATIONS AND NEW CONSTRUCTION GLG Homes INTERIOR DESIGNER Bespoke Interiors Contact us for a complete list of preferred vendors

Vlad Popach Broker M: 425.232.6804 vlad.popach@compass.com

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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