Real Estate Updates February 23, 2023

Redfin reports return of bidding wars in Seattle housing market

Redfin agents say bidding wars are back in the Puget Sound as the housing market has begun to recover from a low point in the second week of November.

According to a new Redfin report, the number of Redfin users requesting first tours increased 17% since the second week of November, and the number of people contacting Redfin agents to start the homebuying process surged 13%. Compared to a year ago, however, home tours and requests for service are down 23% and 27%, respectively, per the Seattle-based real estate brokerage.

Redfin agents said in the report bidding wars have returned in Seattle, central Florida and Richmond, Va., as homebuyers have started to come off the sidelines. Other areas of the country have not awoken from their housing slumbers quite yet, Redfin said.

“Bidding wars are back in Seattle,” Redfin real estate agent Shoshana Godwin said in the company’s press release. “One of our Issaquah listings got 12 offers and is under contract for $155,000 over the $1.4 million list price. The buyer waived every contingency, handed over $300,000 of earnest money and is letting the seller stay for free for two months after closing.”Another home in Seattle’s popular Ballard neighborhood was recently delisted after sitting on the market for over three months. The seller relisted it last week and it went pending in under a day.”

Godwin said homeowners are hesitant to list because they “previously heard that there’s no demand from buyers,” thus making the market more competitive because of the lack of inventory.

According to Redfin’s December data, the median sales price in Seattle dropped .64% to $770,000 year-over-year, while the median days on market climbed to 30, up from 12 a year ago.

Redfin reported mortgage applications are up 28% from early November as the average 30-year fixed rate declined by nearly 1% and now sits around 6%.

by Danny Schmidt, KOMO News