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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.
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. Can sell for around list price and go pending in around 9 days. Can sell for around list price and go pending in around 5 days.
Kitsap County
Which equates to approximately a $500,000 home (view Seattle homes for sale in the $450K - 550K price range) with 20% down on a 30 year fixed 6.29% interest rate loan. Rent growth should remain strong in the short term as high home prices keep many would-be first-time buyers in the rental market. Over the next 12 months, rents are expected to grow more than inflation, stocks and home values." The real winner is the person that needs to sell and buy. In this market most sellers are sitting on big equity and can take their time to get their home ready for sale.
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
This area is separated from other neighborhoods by the Duwamish River. Here, you will find several parks, waterfronts, and other magnificent structures. Seattle is an attractive city to everyone, given its mountainous landscape, endless job opportunities, tourist spots, and more.
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.
Seattle City Housing Trends November 2022
We should continue to see a strong market through the Spring of 2023. Recently Fannie Mae a government-sponsored lender forecasted that the rate on a 30-year fixed mortgage will fall to an average 4.5% in 2023. It gives us time to slow down and weigh the pros and cons of each real estate decision.
However, aspiring residents are often intimidated to live here due to high housing costs. There are 63 cities in King County, where Realtor.com has active listings. Drought risk is based on water stress, which estimates how much of the future water supply will be used for human purposes, like watering the lawn. Heat risk estimates how much climate change might increase the typical number of hot days in a year and the likelihood of extreme heat and heatwaves. Now is still a good time to sell your home as we are still seeing low inventory and historically high prices. We have seen virtually all of the "premium pricing" fade away through the winter season.
The average price per square foot depends on the house type. Our real estate team says that single-family homes cost an average of $484, while the price per square foot for condos goes for $544. Interestingly, house prices in 2020 sustained its growth, and the cost of building materials, and long-term supply constraints drove prices overboard.
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.
Seattle has a track record of being one of the best long-term real estate investments in the U.S. Inventory levels increased a bit but are still what we consider low inventory. This last year we hit all time record lows for the amount of homes for sale. When there are not many homes to buy and many people looking to buy homes that is simple Supply and Demand.
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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