November Delivers a Strong Seller's Market

Local markets were finally beginning to see a glimpse of what could have resulted in more buying power, yet this was overshadowed by a November surprise that resulted in decreased inventory. More buyers were chasing fewer homes this November than any time since May 2018.

Shrinking inventory is normal when the market enters winter months, however, this November was an especially low month for inventory when compared to the last three Novembers. This has resulted in a 12% rise in closed home sales in King County compared to this time last year. This number jumps to a 20% increase when looking at higher-priced homes.

Top-tier homes in the area, including on those on the Eastside, were prompted to sell in anticipation of Washington’s new excise-tax increase which will now be based on a tiered system.

Currently, a flat 1.28% excise tax is applied to all residential sales. This flat rate will change to a tiered tax beginning January 1, 2020. Homes selling for more than $1.5 million will now be taxed at 2.75% up until a value of $3 million while homes valued over $3 million will be taxed at 3%.

This tax increase has motivated some sellers to close a sale on their residence before December 31. On Mercer Island, where the median price of a home is $2.25 million, closed sales were up 65% year-over-year.

Let’s see how the market unfolds as we enter the new year.