Seattle posted the second-highest decrease in close-to-list price ratio of any metro area in the U.S. last month, according to new data from RE/MAX.

The RE/MAX National Housing Report shows that increasing numbers of Seattle-area homes are selling below their list price. In January 2022, the close-to-list price ratio was 104.4%, meaning homes were selling over asking price more often than not. However, the close-to-list price ratio decreased by 6.9 percentage points year-over-year to 97.6% in January 2023.

Despite this trend, consumer demand indicates that spring buying season may bring sharp price increases as demand may start outpacing supply.

“Currently, we are seeing strong buyer demand in Seattle. Showings are up significantly, and the market is returning to listing offer-review periods in the face of increased buyer competition,” said John Manning, managing broker of RE/MAX Gateway in Seattle. “Listing prices have increased by 7% in January over December. This is somewhat typical of the Seattle-area market seasonality as buyers continue to enter the market as spring approaches.

“The most notable trend is the 21.5% decrease in months of supply of available homes in January,” Manning continued. “This shows that demand is outpacing supply despite new listings increasing by 78.5% in January over December. The lack of available homes for sale will cause prices to climb sharply unless there is a significant shift in the number of homes listed.”

Inventory in Seattle reached a 0.9-month supply in January, one of the lowest in the country. The national average is 2 months.