Table of Content
Although 2020 experienced somewhat slow growth, 2021 witnessed an explosion. It is all due to the continuous influx of people, which drove demand and house prices upwards. In the interim, some purchasers are opting for five- or seven-year adjustable-rate mortgages, which reduce the interest rate and monthly payment.
Flood risk in Seattle is increasing faster than the national average. The Redfin Compete Score rates how competitive an area is on a scale of 0 to 100, where 100 is the most competitive. As you can see from the John L. Scott 6 phases to a yearly house cycle chart we are at the bottom of the home buying cycle.
Seattle Migration & Relocation Trends
The housing market in the four-county Puget Sound region has the tightest inventory. Even with the healthy uptick in inventory, there is still less than 2 months of supply. The following housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. This data is provided as an informational resource only.King County, WA is still a seller's real estate market. The median asking price is still rising in double digits. Both pending and closed sales fell sharply from a year ago, but median prices system-wide edged up slightly (0.88%), from $570,000 to $575,000 across the 26 counties in NWMLS's report.
December is generally the month with the fewest new listings due to the holiday season, which is excellent news for buyers. Interest rates on home mortgages are lower than they were a month ago. In October 2022, Seattle home prices were up 7.6% compared to last year, selling for a median price of $845K. On average, homes in Seattle sell after 13 days on the market compared to 7 days last year.
Kitsap County
In 2021, a three-bedroom bungalow rose by 7.6%, selling at a median price of $800,000, while condo prices are a little above half the cost of an apartment. Seattle housing prices are going to rise in 2023 albeit at a slower rate. Let us look at the price trends recorded by Zillow over the past few years. For the past 6 to 7 years an extreme drop in inventory led to an astronomical rise in Seattle home prices, as buyers competed over a dwindling number of properties on the market.
The average days on market increased to 27 days, the percentage of sale price to listing price decreased to 98.2%, and the average sales price decreased. The percentage of homes that sold in the first 30 days is 38.8% indicating a Strong Market. Inventory is at 2.3 months of supply indicating a Low Supply. Despite this, market conditions do not conform to industry norms.
Factors Behind the High Housing Prices in Seattle
We start with our summary of the Seattle market video discussing the 3 key indicators and how they affect the market. Then an infographic and a highlight of what stood out the most this month and some quick stats we think are important. One factor that contributes to this is the inflated salaries of workers.
The notion that these workers can afford anything in Seattle has driven prices of goods and services upwards – one that resulted in the high cost of housing. The mortgage rates in the city are considered as historically low. It made borrowing more affordable, especially for those with good credit histories, thus fuelling demand in a market with supply constraints. West Seattle is predominantly occupied by families due to the abundance of single-family homes.
The Seattle Housing Market saw 724 new listings, 1,668 homes were for sale, while 613 homes sold in November in Seattle. If you’re a buyer you will want to position yourself to create a buyer advantage when competing with other buyers and walk in confidence when making an offer. Listings are selling at 98.2% of their list price on average. As you can see from the table above anything below 5 months of inventory is considered low. This article will be about the current and future state of the Seattle area housing market. The current median home sale price is $675,000, down from April's high of $757,750.
At this time most economists are predicting that prices level off, but will not loose appreciation. Anywhere from a 0-.5% appreciation gain for 2022 are what we should end at. If you are thinking of buying a home in Seattle right now and are worried that the interest rates have increased it is important to contrast that to what you gain.
In Sep '22 - Nov '22, 17% of Seattle homebuyers searched to move out of Seattle, while 83% looked to stay within the metropolitan area. Find out the number of homebuyers searching to move in and out of Seattle, plus the top relocation destinations.
Houses in the 0-$350K price range are selling 46.3% of the time in the first 30 days. People buying houses they were allowed to tour for 15 minutes. People waiving all their contingencies and bidding the price of the home up by $50-200K. Sellers that are Market Ready Day One are still seeing their homes sell swiftly and for top dollar.
Seattle is also a seller's market, having a total sales-to-total listings ratio above 0.2 tend, which favors sellers. Seattle's median sales price increased by 7.83% to $824,900. Even as there are more homes for sale, there are still many buyers trying to buy… the homes that do list are still selling fairly quickly.
After we sell we have a much higher chance of buying our move up or move down without having to arrange for temporary housing. We are even seeing contingent sales start to get accepted again. Seattle has one of the nation’s fastest-cooling housing markets, with median sales prices down nearly 11% since April, according to the latest RE/MAX National Housing Report. East Queen Anne has a median listing price of $1.2M, making it the most expensive neighborhood in Seattle. Federal Way is the most affordable city in King County, with a median listing price of $588.8K.
Iron and steel increased by over 73% during that period too. While lumber prices have declined by 20%, the gap between supply and demand is still not bridged. The continuous imbalance in supply and demand is the major factor responsible for the high housing costs in Seattle.
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