The Federal Reserve has made waves with a recent rate cut, but what does it mean for Seattle and King County’s real estate market? Here’s your King County Housing Market Watch for this week, highlighting the latest trends, numbers, and insights for buyers and sellers.

Key Federal Reserve Update: What’s the Impact?

Federal Rate Cut Highlights

• Rate Cut: A 0.25% reduction announced today.

• Current Mortgage Rates:

  • 30-Year Fixed: 6.9% (down 0.15% from yesterday).

  • 15-Year Fixed: 6.45%.

While the Fed’s actions don’t directly correlate to mortgage rates, they influence overall trends. Experts predict rates may continue to decline through the end of 2024, potentially leading to a more robust market in 2025.

A Look Ahead

If rates fall below 6%, it’s estimated that 4 million buyers nationwide could re-enter the market. For Seattle and King County, this would mean a significant boost in buyer activity.

King County Real Estate Trends This Week

New Listings and Pending Sales

• New Listings:

  • This Week: 359 new listings.

  • Down by 136 compared to last week (495 new listings).

• Pending Listings:

  • This Week: 629 homes went under contract.

  • Down by 78 from last week (707 pending listings).

Inventory Insights

With pending sales outpacing new listings, inventory is being absorbed by active buyers. This suggests continued buyer activity despite the seasonal slowdown.

Recent Market Activity: A Seller's Perspective

Sold Listings

• This Week: 526 homes closed, compared to 589 last week (a decline of 63).

Price Reductions

• Price Reductions: 299 listings reduced prices this week, making up almost 34% of new listings.

For Sellers:

• Competition is increasing, and listings are sitting longer.

• To stand out:

  • Price your home competitively.

  • Ensure high-quality marketing and staging.

  • Address minor repairs to make your home more appealing.

A Noteworthy Closing: Capitol Hill Condo

Details:

• Price: Sold for $620,000.

• Buyers: Faced no competition despite 12 showings before the offer review date.

• Negotiations: Secured a $2,500 credit for window repairs after inspection.

This case highlights the importance of strategic pricing and negotiation, even in a competitive market.

Tips for Buyers in the Current Market

• Active Listings: The seasonal slowdown offers opportunities to secure great deals before the holidays.

• Motivated Sellers: With many price reductions, buyers can negotiate favorable terms.

Preparing for 2025: What to Expect

As rates potentially drop below 6%, we anticipate a busier, more active market in 2025. Whether you're planning to buy or sell, now is the time to prepare.