Norada Real Estate Investments

  • Home
  • Markets
  • Properties
  • Notes
  • Membership
  • Podcast
  • Learn
  • About
  • Contact

Seattle Housing Market: Prices, Trends, Forecast 2022-2023

January 19, 2023 by Marco Santarelli

Seattle Housing Market

The Seattle Housing Market is Cooling Down

This article will talk about how the housing market in the Seattle area is right now and its forecast for next year. The Seattle real estate market has been hot since the pandemic but things are changing now. Home prices in the Seattle area remain well above where they were a year ago but the market is cooling off. According to Redfin, Seattle has the fastest-cooling housing market in the U.S.

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. Noting that experts anticipate lower interest rates in the near future as the economy works to reduce inflation, homebuyers are currently acquiring at the market price with the option to refinance when interest rates decline.

In the interim, some purchasers are opting for five- or seven-year adjustable-rate mortgages, which reduce the interest rate and monthly payment. With inventory levels still substantially below the long-term average, there cannot be a big increase in supply in the future. Seattle is unlikely to become a buyer's market in 2023, but it could be a much more balanced market. The days of sellers “having the upper hand” are over, and they will need to become more realistic as precise pricing becomes more crucial than ever.

Also Read: Which Are The Hottest Markets in Seattle?

According to NWMLS's latest report, data for December reveals sustained growth in the number of active listings compared to the same month last year, but significant declines in the number of pending and completed sales. The prices of single-family homes and condominiums sold in the 26 counties included in the MLS report decreased by 0.51% from a year ago, marking the first annual dip since March 2012.

The median sales price was $570,000, a decrease of $2,900 (-0.51%) from the same period last year. In May 2022, the yearly median price peaked at $660,000. The median price for single-family homes (excluding condos) that sold last month was $587,500, down 0.42% from a year ago when it was $590,000. Condo prices increased last month compared to the same month a year ago, increasing from $435,000 to $440,000 for a gain of 1.15%.

King County experienced an average of 47 sales per day last month, with year-over-year (YOY) median prices in King County down by $14,000, declining from $749,000 to $735,000. All four counties in the Puget Sound region had minor price decreases, ranging from approximately 0.14% in Snohomish County to 2.91% in Pierce County.

NWMLS brokers added 2,980 new listings to inventory last month. That total was 1,637 fewer than the number added during December 2021 (4,617). At month-end, buyers could choose from 9,475 active listings, nearly three times as many as a year ago when 3,240 homes and condos were offered for sale area-wide.

At the end of December, there were almost 2.1 months of inventory, marking the fourth consecutive month with a supply of at least eight weeks. Six counties, including King, Kitsap, and Snohomish, have a supply of fewer than two months. Only four of the 26 counties in the NWMLS service area have five months or more of inventory.

This indicates that this region has slowed due to rising interest rates, but has not yet flipped into a buyer's market, which is marked by the 4-to-6-month inventory. Using a metric known as months of inventory, it would take approximately 1.72 months to sell all the houses for sale in King County at the current rate of demand. The inventory continues to grow but the market in Snohomish County remains the most competitive in the Puget Sound housing market with months of supply being 1.52.

There are 1.78 months of supply in Kitsap County and 2.13 months in Pierce County. At month end, NWMLS brokers added 14,214 active listings of single-family homes and condos system-wide. The uptick in supply boosted the months of inventory figure to 2.2. That is the highest level, based on this metric, since January 2019.

<<<Read: Washington State Housing Market Forecast>>>

Seattle Housing Market Report – December

Seattle Housing Market
Data by NWMLS. Forecast by Zillow.

Below is the most recent Seattle Housing Market Report released by “Northwest MLS.” The report compares the key housing metrics of the City of Seattle (which is part of King County).

Here are the numbers (RESIDENTIAL+CONDO) for December 2022 compared with December 2021.

ACTIVE LISTINGS FOR SALE

  • Total active listings in Seattle were 933.
  • This represents an increase of 125.91% as compared to December 2021.
  • Total active listings in All King County were 2,529.
  • This represents a rise of 264.94% as compared to December 2021.

CLOSED SALES

  •  534 closed sales were registered by brokers in Seattle.
  • This represents a year-over-year decrease of -43.79%.
  • 1,470 closed sales were registered in All King County.
  • This represents a year-over-year decrease of -43.29%.

PENDING SALES

  • 416 pending sales were registered by brokers in Seattle.
  • This represents a decrease of -38.55% from the same month a year ago.
  • 1,206 pending sales were registered in All King County.
  • This represents a decrease of -30.05% from the same month a year ago.

MEDIAN SALES PRICE

  • Seattle's median sales price increased by 3.51% to $789,250.
  • Last year, at this time, the median price in Seattle was $762,475.
  • King County's median price decreased by 1.87% to $735,000.
  • Last year, at this time, the median price in King County was $749,000.

MONTHS OF INVENTORY (MOI)

  • 1.75 months represents the number in Seattle.
  • Months of supply in All King County is 1.72.
  • 6 months of supply is when you have a balanced real estate market. 
  • This shows that this region continues to be a seller’s housing market.

Why is the Seattle Housing Market So Hot?

Seattle's housing market is driven by employees of local tech businesses like Amazon and Microsoft, as well as corporations with big operations in the vicinity like Google and Facebook. Many of them didn't want to work remotely in small apartments during the epidemic, so they sought spacious homes with office areas. Most of them have the financial means to compete with other buyers and raise home selling prices.

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. To summarise the last month's statistics we can say that the Puget Sound region remains a seller's real estate market with less than 2 months of inventory — still well below what is required to meet the volume of buyers right now.

Seattle Housing Market Report
Source: NWMLS

It is a Seller's Real Estate Market

The following housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded. 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.

The median asking price for a home in King County was $840K in November 2022, which is an increase of 12 percent year over year. The median sale price was 764K. If the Median Listing Price is increasing, the market is likely “hot,” and homes will sell more quickly. When prices increase, sellers will benefit. In September, homes in King County sold for approximately the asking price. The Sale-to-List Price Ratio was 98.63%.

  • There are 63 cities in King County, where Realtor.com has active listings.
  • Beaux-Arts has a median listing price of $2.3M, and it remains the most expensive city in King County.
  • Federal Way is the most affordable city in King County, with a median listing price of $588.8K.
King County Housing Market
Source: Realtor.com

Seattle City Housing Trends November 2022

  • The median listing price of homes in the city of Seattle is $814K, trending up 8.7% year-over-year.
  • The median sale price is $811.3K.
  • Seattle is also a seller's market, having a total sales-to-total listings ratio above 0.2 tend, which favors sellers.
  • On average, homes in Seattle, WA sell after 43 days on the market.
  • The trend for median days on market in Seattle, WA has gone up since last month, and slightly up since last year.
  • East Queen Anne has a median listing price of $1.2M, making it the most expensive neighborhood in Seattle.
  • Belltown has become the most affordable neighborhood, with a median listing price of homes being around $559.9K.

Seattle Housing Market Forecast 2023

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. Seattle has a track record of being one of the best long-term real estate investments in the U.S.

  • According to NeighborhoodScout.com, Seattle's real estate appreciated 137.11% over the last ten years.
  • It is an average annual home appreciation rate of 9.02%,
  • It puts Seattle in the top 10% nationally for real estate appreciation.
  • As of now, Seattle prices are up across the board.
  • During the twelve months, from 2021 Q2 – 2022 Q2, the Seattle appreciation rate has been 12.16%.
  • In the quarter, from 2022 Q1 – 2022 Q2, the appreciation rate has been at 4.35%, which annualizes to a rate of 18.58%.
  • However, the housing market in Seattle is cooling quickly since the third quarter of 2022.

The current typical home value of homes in Seattle is $929,964 (Data through November 30, 2022). ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. Seattle home values have gone up 6% since last November.

  • Typical Home Value: $929,964
  • 1-year Value Change: +6.0%
  • The median sale-to-list ratio is 0.998
  • 26.9% Percent of sales over list price.
  • 46.5% Percent of sales under list price.
  • 19 Median days to pending.

Here is the housing forecast for Seattle-Tacoma-Bellevue Metro.

  • Seattle-Tacoma-Bellevue Metro home values have gone up by 10% from last year to $759,119.
  • The Seattle metro housing market forecast ending with November 2033 is somewhat negative.
  • Zillow predicts that Seattle metro home values may decline by 1.3% between November 2022 to November 2023.
  • If this forecast is correct, Seattle metro home prices will be slightly lower in the 3rd Quarter of 2023 than they were in the 3rd Quarter of 2022.
Seattle Housing Market Forecast
Source: Zillow

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? People continue to buy and sell their homes, whether they're growing their family and need a bigger place, relocating for a job, or retiring. Opportunities abound for both buyers and sellers if they’re willing to act quickly.

Seattle and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Seattle can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s unlikely to happen at least over the next twelve months.

The bottom line: The current inventory (months of supply for SFH+condos) in this region remains tight — 1.75 months in Seattle and 1.72 months in All of King County. Therefore, in the long term, the Seattle real estate market remains as strong as always. This housing market is skewed to sellers due to a persistent imbalance in supply and demand.

FAQs – Seattle Housing Market

1. What is the median price of single-family homes in Seattle?

Ans: $879,975

2. What is the median price of condos in Seattle?

Ans: $512,500

3. What is the median price of single-family homes in King County?

Ans: $825,000

4. What is the median price of condos in King County?

Ans: $465,000


Some of the information in this article was obtained from referenced websites. Norada Real Estate Investments provides no explicit or implied claims, warranties, or guarantees that the material is accurate, trustworthy, or current. All information should be validated using the below references. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

REFERENCES

  • https://www.nwmls.com/
  • https://www.zillow.com/seattle-wa/home-values
  • https://www.redfin.com/news/seattle-homes-sold-above-list-price/
  • https://www.realtor.com/realestateandhomes-search/Seattle_WA/overview
  • https://www.rentcafe.com/average-rent-market-trends/us/wa/seattle
  • https://www.neighborhoodscout.com/wa/seattle/real-estate
  • https://www.littlebighomes.com/real-estate-seattle.html
  • https://seattlerealestatenews.com/category/info/seattle-monthly-housing-news
  • https://www.seattlepi.com/coronavirus/article/best-time-to-buy-or-sell-a-house-during-pandemic-15287608.php

Filed Under: Growth Markets, Housing Market Tagged With: Seattle Housing Market, Seattle Housing Market Forecast, Seattle Housing Market News, Seattle Housing Market Trends, Seattle Housing Prices, Seattle Real Estate Market

Seattle Real Estate Market is Cooling Fastest in the US

December 6, 2022 by Marco Santarelli

Seattle Housing Market Report

Seattle Real Estate Market is Cooling

The housing market in Seattle and King County has undergone recent changes that have provided buyers with an increased number of options. The people who live in Seattle have never had as many options for places to live as they do right now, which means that now might be a good time to buy a house. There were fewer pending home sales which means that houses are staying on the market for much longer periods of time.

According to a new analysis from Redfin, a technology-powered real estate brokerage, the Seattle real estate market is slowing faster than any other market in the country due to rising mortgage rates, inflation, a weakening stock market, and widespread economic anxiety. This is according to a Redfin analysis that ranks the 100 most populous metropolitan regions in the United States by the rate at which they are cooling, based on the change in multiple housing indices between February 2022 and August 2022.

These data include of pricing, price declines, supply, pending sales, sale-to-list ratio, and home sales velocity. The ten areas that are cooling the quickest are virtually exclusively West Coast cities that have always been pricey or locations that were much less affordable during the pandemic due to the influx of migrating homeowners. Las Vegas came in second, followed by San Jose, California, San Diego, Sacramento, California, Denver, Arizona, Oakland, California, North Port, Florida, and Tacoma, Washington.

Rising mortgage rates make wealthy locations like Seattle more costly, discouraging purchasers. Seattle has seen the biggest reduction in homebuyer interest and competition this year. In August, 34% fewer properties sold in two weeks than a year earlier, compared to February's 7% gain. In August, the average property sold for 5% more per square foot than in February. The average property sold for 2% less in August than a month earlier, sliding from its peak.

In terms of dollars, higher mortgage rates have a greater impact on more expensive residences. At current mortgage rates of 6%, the monthly mortgage payment on the median-priced Seattle home, which costs $775,000, exceeds $4,400. This is up from approximately $3,300 at the beginning of the year when the average interest rate was 3%.

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. Homes in North Seattle receive 3 offers on average and sell in around 8 days. The average sale price of a home in North Seattle was $823K last month, up 3.0% since last year. The average sale price per square foot in North Seattle is $484, up 1.1% since last year. Many homes in North Seattle receive multiple offers, some of which include waived contingencies. The average home sells for around the asking price and goes pending in 8 days. Hot homes in North Seattle can sell for 2% above the list price and go pending in 5 days.

West Seattle Housing Market

According to Redfin, the housing market in West Seattle is extremely competitive. Homes in West Seattle receive 4 offers on average and sell in around 9 days. The average sale price of a home in West Seattle was $805K last month, up 4.3% since last year. The average sale price per square foot in West Seattle is $491, up 2.5% since last year.

Many homes in the West Seattle housing market receive multiple offers, some of which include waived contingencies. The average home sells for around the asking price and goes pending in 9 days. Hot homes in West Seattle can sell for 2% above the list price and go pending in 5 days or less.

In August 2022, West Seattle home prices were up 9.5% compared to last year, selling for a median price of $805K. On average, homes in West Seattle sell after 7 days on the market compared to 7 days last year. There were 463 homes sold in August this year, down from 683 last year.

Northwest Seattle Housing Market

The Northwest Seattle housing market is also very competitive. Homes in Northwest Seattle receive 4 offers on average and sell in around 7 days. The average sale price of a home in Northwest Seattle was $849K last month, up 6.1% since last year. The average sale price per square foot in Northwest Seattle is $563, up 4.6% since last year.

Many homes in Northwest Seattle receive multiple offers, some of which include waived contingencies. The average home sells for 1% above the asking price and goes pending in 7 days. Hot homes in Northwest Seattle can sell for 3% above the list price and go pending in 5 days or less.

In August 2022, Northwest Seattle home prices were up 4.8% compared to last year, selling for a median price of $870K. On average, homes in Northwest Seattle sell after 6 days on the market compared to 6 days last year. There were 251 homes sold in August this year, down from 347 last year.

Northeast Seattle Housing Market

The housing market in Northeast Seattle is extremely competitive. Homes in Northeast Seattle receive 4 offers on average and sell in around 9.5 days. The average sale price of a home in Northeast Seattle was $1.12M last month, up 8.7% since last year. The average sale price per square foot in Northeast Seattle is $611, up 4.1% since last year.

Many homes in Northeast Seattle receive multiple offers, some of which include waived contingencies. The average home sells for 1% below the asking price and goes pending in 10 days. Hot homes in Northeast Seattle can sell for 1% above the list price and go pending in 5 days or less.

In August 2022, Northeast Seattle home prices were up 14.3% compared to last year, selling for a median price of $1.1M. On average, homes in Northeast Seattle sell after 7 days on the market compared to 6 days last year. There were 254 homes sold in August this year, down from 325 last year.

Central Seattle Housing Market

The housing market in Central Seattle is extremely competitive. Homes in Central Seattle receive 3 offers on average and sell in around 10 days. The average sale price of a home in Central Seattle was $875K last month, up 9.4% since last year. The average sale price per square foot in Central Seattle is $626, up 2.3% since last year.

Many homes in Central Seattle receive multiple offers, some of which include waived contingencies. The average home sells for 1% below the asking price and goes pending in 10 days. Hot homes in Central Seattle can sell for around the list price and go pending in 5 days or less.

In August 2022, Central Seattle home prices were up 3.4% compared to last year, selling for a median price of $879K. On average, homes in Central Seattle sell after 7 days on the market compared to 10 days last year. There were 378 homes sold in August this year, down from 583 last year.

Downtown Seattle Housing Market

The Downtown Seattle housing market is somewhat competitive. Homes in Downtown Seattle receive 1 offer on average and sell in around 16 days. The average sale price of a home in Downtown Seattle was $619K last month, down 8.8% since last year. The average sale price per square foot in Downtown Seattle is $737, down 10.9% since last year.

Some homes in Downtown Seattle receive multiple offers from buyers. The average home sells for 1% below the asking price and goes pending in 16 days. Hot homes in North Seattle can sell for around the list price and go pending in around 5 days. In August 2022, Downtown Seattle home prices were down 0.16% compared to last year, selling for a median price of $614K. On average, homes in Downtown Seattle sell after 16 days on the market compared to 28 days last year. There were 177 homes sold in August this year, down from 279 last year.

Will housing Prices Drop in Seattle ?

As the market cools, it would take nearly two months to sell all the available single-family homes in the region at the current rate of demand. The last time inventory was at this level was in late 2018 and early 2019, when the housing market in the region was experiencing another downturn. In the last year, we had record-breaking sales in the Seattle housing market despite record-low inventory levels. No month had a supply greater than a month.

By and large, industry analysts define a balanced market as having an inventory of four to six months. The Seattle area home prices continue to rise beyond the reach of many buyers. The median home sold for $828,111 in King County, up 14.2 percent from 2020. Prices increased even faster in Snohomish County, where the median price of $680,000 increased by 23.6 percent, and in Pierce County, where the median price of $502,500 increased by 19.6 percent.

Redfin’s economists predict Seattle’s housing market is less vulnerable to a dramatic slide in a recession than many other cities, such as Boise, Idaho, and Phoenix. That ranking relies on 10 measures of price volatility, debt-to-income ratio, flipping, second homes, and other factors. Marr predicts Seattle-area prices will continue to decline this year, though how dramatically depends in part on the rest of the economy.

More homes are available for sale, so the inventory is improving. It is approaching the two-month mark. Last year Seattle area hit all-time record lows for the number of homes for sale. Seattle has the second highest percentage of tech workers in the country. Tech jobs attract people from all over the world and typically pay well above the national average. When there aren't many houses to buy and a lot of people looking to buy houses, it's a case of supply and demand. There isn't enough supply to meet all of the demand.

There are several reasons why now is a good time to purchase a home, even though housing prices are expected to keep climbing through 2022. Additionally, interest rates have been trending downward since reaching their all-time high in 2022. Real estate agents are reporting that the Seattle housing market is showing signs of returning to normal in the second half of 2022.


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

Filed Under: Housing Market Tagged With: Seattle Housing Market, Seattle Housing Market News, Seattle Housing Market Report

Real Estate

  • Baltimore
  • Birmingham
  • Cape Coral
  • Charlotte
  • Chicago

Quick Links

  • Markets
  • Membership
  • Notes
  • Contact Us

Blog Posts

  • Orange County Housing Market Forecast & Trends 2023
    February 4, 2023Marco Santarelli
  • Real Estate Economics: How Real Estate Markets Work?
    February 3, 2023Marco Santarelli
  • 50 Best Success Quotes of All Time (Updated for 2023)
    February 3, 2023Marco Santarelli

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
BBB
  • Terms of Use
  • |
  • Privacy Policy
  • |
  • Testimonials
  • |
  • Suggestions?
  • |
  • Home

Copyright 2018 Norada Real Estate Investments