When it comes to the real estate scene, few markets have garnered as much attention as the Seattle housing market. Known for its robust economy, thriving job market, and stunning natural surroundings, Seattle has become a highly sought-after destination for both homebuyers and investors alike. In this blog post, we turn our focus to the hottest housing markets within the Seattle area, where the buzz surrounding Seattle's housing market is at its peak.
The Hottest Housing Markets in Seattle Area
Here are some of the most competitive housing markets within Seattle, according to data provided by Redfin, a national real estate brokerage.
North Seattle Housing Market
According to Redfin, the North Seattle housing market is very competitive. Many homes get multiple offers, some with waived contingencies.
The average homes sell for about 1% above the list price and go pending in around 7 days. Hot listings can sell for about 3% above the list price and go pending in around 4 days.
The median sale price of a home in North Seattle was $690K last month, down 8.0% since last year. The median sale price per square foot in North Seattle is $467, up 0.0% since last year.
West Seattle Housing Market
According to Redfin, the housing market in West Seattle is extremely competitive. Many homes get multiple offers, some with waived contingencies. The average homes sell for about 1% above the list price and go pending in around 8 days. Hot listings in West Seattle can sell for about 3% above the list price and go pending in around 5 days.
The median sale price of a home in West Seattle was $775K last month, down 3.1% since last year. The median sale price per square foot in West Seattle is $510, up 3.4% since last year.
Northwest Seattle Housing Market
The Northwest Seattle housing market is also very competitive. Many homes get multiple offers, some with waived contingencies. The average homes sell for about 1% above the list price and go pending in around 8 days. Hot homes here can sell for about 3% above the list price and go pending in around 5 days.
The median sale price of a home in Northwest Seattle was $825K last month, down 2.9% since last year. The median sale price per square foot in Northwest Seattle is $529, up 3.1% since last year.
Northeast Seattle Housing Market
The housing market in Northeast Seattle is the most competitive. Most homes get multiple offers, often with waived contingencies. The average homes sell for about 1% above the list price and go pending in around 6 days. Hot homes here can sell for about 5% above the list price and go pending in around 4 days.
The median sale price of a home in Northeast Seattle was $1.1M last month, up 2.6% since last year. The median sale price per square foot in Northeast Seattle is $586, up 3.7% since last year.
Central Seattle Housing Market
The housing market in Central Seattle is very competitive. Many homes get multiple offers, some with waived contingencies. The average homes sell for about 1% below the list price and go pending in around 12 days. Hot homes in Central Seattle can sell for about 1% above the list price and go pending in around 5 days.
The median sale price of a home in Central Seattle was $829K last month, down 6.9% since last year. The median sale price per square foot in Central Seattle is $609, down 5.3% since last year.
Downtown Seattle Housing Market
The Downtown Seattle housing market is somewhat competitive as some homes get multiple offers. The average homes sell for about 2% below the list price and go pending in around 38 days. Hot hames in this area can sell for around the list price and go pending in around 10 days.
The median sale price of a home in Downtown Seattle was $550K last month, down 3.9% since last year. The median sale price per square foot in Downtown Seattle is $699, down 8.4% since last year.
Will housing Prices Drop in Seattle?
The Seattle housing market, known for its high prices and competitive environment, has long posed challenges for homebuyers. However, recent data from a Redfin report suggests a shift in the market dynamics. According to the report, housing prices in the greater Seattle area are starting to come down, offering some hope for potential buyers. This blog post will explore the factors contributing to this trend and analyze whether it signifies a sustained drop in housing prices.
Adjustments to Offset Rising Mortgage Rates:
The Redfin report highlights that the decrease in housing prices is primarily a response to the rise in mortgage rates. To maintain affordability for buyers, sellers have become more realistic in their pricing strategies. This adjustment reflects a departure from the seller's market mentality of expecting top dollar for their properties, which was prevalent in previous years.
Pandemic Boomtowns and Coastal Markets:
Redfin's analysis reveals that pandemic boomtowns and expensive coastal markets, including Seattle, are experiencing the fastest decline in home prices. The initial surge in demand during the pandemic has subsided, leading sellers to recalibrate their expectations. This trend indicates a shift towards more balanced market conditions, favoring buyers.
Impact on Monthly Housing Payments:
Approximately 23.6% of homes for sale in Seattle now offer lower monthly housing payments compared to a year ago, according to Redfin's findings. These adjustments align with the decline in buying power resulting from rising mortgage rates. As a consequence, buyers who were once qualified for higher-priced homes may now need to consider more affordable options.
National Trends and Affordability:
While nationwide median home prices experienced a 3.3% decline, the highest annual drop in a decade, it's important to note that Seattle's housing market remains relatively unaffordable. The median home price in Seattle currently stands at $740,000, almost double the national median. Despite the drop in prices, affordability remains a significant concern for potential buyers.
Time on the Market and Seller Hesitancy:
As prices adjust, homes in Seattle are spending slightly longer on the market, ranging from 50 to 70 days on average. Proper pricing continues to play a crucial role in facilitating faster sales, with aggressively priced properties still garnering attention and selling within the first week. However, some homeowners are hesitating to sell, particularly those who purchased a home during the pandemic and secured low mortgage rates of 2% to 3%.
While the Seattle housing market is showing signs of a price correction, it is important to approach the situation with a balanced perspective. The decline in housing prices can be attributed to sellers adjusting their expectations in response to rising mortgage rates, aiming for more realistic pricing.
However, despite this positive development, Seattle's housing market remains relatively unaffordable, with the median home price significantly higher than the national average. It is crucial for homebuyers, especially first-time buyers, to carefully consider their options and shop around when it comes to lenders to make informed decisions in this evolving market.
Sources:
- https://www.nwmls.com/
- https://www.noradarealestate.com/blog/seattle-real-estate-market/
- https://www.redfin.com/neighborhood/36496/WA/Seattle/North-Seattle/housing-market
- https://www.redfin.com/neighborhood/741/WA/Seattle/Downtown-Seattle/housing-market
- https://www.redfin.com/neighborhood/3040/WA/Seattle/West-Seattle/housing-market
- https://www.redfin.com/neighborhood/37603/WA/Seattle/Northwest-Seattle/housing-market
- https://www.redfin.com/neighborhood/36541/WA/Seattle/Northeast-Seattle/housing-market
- https://www.redfin.com/neighborhood/760187/WA/Seattle/Central-Seattle/housing-market
- https://www.redfin.com/news/metros-recession-risk-housing-downturn-2022/
- https://investors.redfin.com/news-events/press-releases/detail/796/redfin-reports-seattles-housing-market-is-cooling-faster
