For the first time in four years, the average Seattle and surrounding metro area home is selling for a little below its listing price. During this year’s peak (thus far) in May, homes were selling on average 6.3 percent above its listing price—now, they are going for 0.6 percent below listing. The last time the average home sold below its listing price was the end of 2014.
Since spring, sale prices have dropped nearly 7 percent ($55,000) in Seattle. Over the past month, Seattle-area home prices have dropped more than anywhere else in the country. Despite what appears to be a hefty drop, Seattle is only dropping back down toward what a “normal” market looks like. According to Redfin, homes are selling in about 17 days on average—up from 10 days a year ago.
The latest Case-Shiller Home Price Index shows Las Vegas continuing to have the country’s fastest-rising home prices (up 13.9 percent) after surpassing Seattle earlier this year. Now, San Francisco has also passed Seattle with a 10.6 percent increase. Seattle (9.6 percent), Denver (7.7 percent), and Tampa (7 percent) round out the top five.
Nationally, home prices were up 5.8 percent in August when compared with August 2017, but down from the 6.5 percent peak earlier this year.
The August Case-Shiller report is the first time Seattle has been out of the top two since late 2015. Over the course of the previous 31 months Seattle’s year-over-year home price growth was in double digits, which is no longer the case. Single family home prices in the metro area fell 1.6 percent from July to August—the biggest drop in the country. The last time the index showed prices dropping that much was 2011.