After beginning the year very low, interest rates rose briskly to 4.25% in the last weeks of 2016. The annual average for a conventional 30-year fixed rate mortgage was 3.65% in 2016.
The Seattle real estate market saw the median sale price of single-family homes increase by 12.7% in 2016. The average cost per square foot of Seattle homes increased 13.4% to $353.
Five years into a strong seller’s market, with demand unabated, it appears we will see much of the same in 2017.
There were 8,766 Seattle homes sold in 2016. Of those sales, 2,527 sold below $500,000 and 1,078 had a sale price above $1,000,000.
The median home sale price in Seattle was $620,000.
Mercer Island Report
Mercer Island’s real estate market was greatly compromised by a severe shortage of moderately affordable homes for sale. 230 of the 289 homes sold in 2016 were priced above $1,000,000—and 56 of those were priced above $2,000,000. Inventory tightened as the year progressed and the Island ended the second half with only a handful of homes for sale that were below the $2 million mark. The few homes priced below the $1 million price point were snatched up at aggressive prices while many homes in higher price segments sat out the dance on the sidelines.
The median sale price of single-family homes on the Island increased by 10.0% in 2016. The average cost per square foot kept pace evenly, increasing 10.1% to $497.
Many buyers looking to own on Mercer Island in affordable price ranges have turned to the very modest supply of condominiums for sale—with most condos having sold in mere days at an average of 2% above their listing price.
The median sale price of single-family homes on the Eastside increased by 13.7% in 2016. Lagging, the average cost per square foot increased 10.4% to $332.
Five years into a strong seller’s market, with the expanding Bellevue skyline and the wealth of jobs that come with it, we expect to see much of the same in 2017.
There were 8,220 Eastside homes sold in 2016. Of those sales, 1,137 sold below $500,000 and 2,054 had a sale price above $1,000,000.
The median home sale price on the Eastside was $753,500.