Last night, Redfin Builder Services, our full-service new construction sales and marketing team, held its first State of the Market event at Redfin’s headquarters. The gathering brought together developers, builders and industry specialists to discuss how new construction sales are faring in Seattle’s red-hot market. Seattle’s booming tech sector and population growth continue to put pressure on the housing market—supply is down 26 percent compared to April last year, with no relief in sight. All of this is good news for local builders and developers, and much of the evening focused on how local builders can best meet demand. The supply shortage is met with extremely strong demand from homebuyers, and the result is a very competitive market that favors just about anyone with a home to sell. In April, the typical home spent only eight days on the market before finding a buyer, and in May, 78 percent of offers written by Redfin agents faced bidding wars.
Redfin chief economist Nela Richardson opened the event with an overview of national trends, and addressed head-on the question of, “are we in a bubble?” The answer, for Seattle at least, is no.
“Even with Seattle’s strong home price growth, there is still reliable demand from well-resourced homebuyers in the tech-laden, high-income job market,” says Richardson. “The time for concern is when home prices outpace income growth—similarly to what we’re currently seeing in San Francisco.”
Shifting to the local level, Kate Knight, Redfin Builder Services national manager, presented Redfin data and trends on consumer behavior in Seattle, where demand is the highest, and the current gap in affordability.
“Homes in Snohomish and King county are selling after only 8 and 7 days on market and more than 55 percent of these homes sell above asking price,” said Knight. “The buyer response we’re seeing is an increase in all cash offers, waved financial and inspection contingencies and making offers without seeing the home in person to win in this competitive market. New construction homes can offer buyers comfort – with the knowledge that they can purchase without fighting multiple offers”
Kate then presented Five Ways to Thrive in Today’s market, emphasizing how important it is to for builders to have a strong online presence, including highly targeted email and social media advertising as well as simple solutions like project websites with easy ways for potential buyers to sign up and learn more.
Kate and Tana Lehman, Seattle market manager for Redfin Builder Services, concluded the event with questions from the audience, generating discussions on topics such as pricing strategy, the benefits of new social media tools and building to unmet demand.
Data and Resources
Is the Luxury Housing Market in a Slump?
Is Seattle Getting Richer or Poorer?
Want to Help the Middle Class? More Houses, Please
Survey Says: A Denser, Less Economically Diverse Seattle in 2025
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