Seattle Housing Market 2024: Trends and Predictions – Norada Real Estate Investments
Seattle’s housing market has gained a reputation for competitiveness within Washington State. Fueled by a robust job market and a well-established tech industry, the city attracts a steady stream of homebuyers. However, diving into this market requires an understanding of current trends.
Seattle is known for its higher price points compared to other parts of the state, so be prepared for a significant investment. This article will explore everything you need to know about the Seattle housing market, including current home values, important trends, and valuable insights for buyers and sellers.
Buy/sell, rent/lease residential &
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So, How is the Seattle Housing Market Doing in 2024?
The market remains competitive, with faster sales but slower price growth compared to previous years. While still a seller’s market, buyers may find some negotiation power. Here are the latest trends in the Seattle housing market.
Home Prices on the Rise Across the Puget Sound
The median home price saw significant growth across all four counties in the Puget Sound region: King, Snohomish, Pierce, and Kitsap. King County, which encompasses Seattle, witnessed the most dramatic increase with a staggering 12% year-over-year jump, pushing the median home price to a whopping $980,000, according to the stats released by NWMLS.
Even surrounding areas haven’t been spared, with Snohomish County experiencing a price rise, Pierce County growing, and Kitsap County increasing by 6%. Seattle itself continues to be a frontrunner, with the median home price reaching a remarkable $997,900, reflecting a nearly 13% increase compared to last year.
Condo prices followed a similar trend, with significant surges in most areas except Southwest King County. Notably, Seattle and the Eastside witnessed substantial condo price increases.
Housing Market Inventory Challenge
While there has been a recent uptick in new listings, overall housing supply in the Seattle market remains limited. This scarcity is partly attributed to the “lock-in effect.” Homeowners, incentivized by their ultra-low existing mortgage rates, are hesitant to sell and potentially face higher rates in the current market. This limited inventory, coupled with high buyer demand, creates a competitive environment in the Seattle market where bidding wars and quick sales are the norm.
Despite the increase in listings, the current supply falls short of buyer demand in the Seattle market. This, combined with high monthly mortgage payments, discourages some potential buyers from entering the market altogether.
Market Pace: A Double-Edged Sword
The Seattle real estate market moves at a breakneck pace. Redfin reports that approximately 80% of homes sold in the Seattle area in March were off the market within two weeks, placing it second only to Rochester, N.Y. This rapid turnover reflects the intense competition for available properties in the Seattle market.
While the market isn’t quite as tilted towards sellers as it was during the peak of the pandemic-driven market in 2021, it still leans in their favor in the Seattle market. It currently takes about one month to sell through all single-family homes in King County at present demand levels. This may be a slight improvement for buyers, but it’s still far from the balanced market conditions many would prefer.
Hence, the Seattle housing market is complex. While it’s a seller’s market overall, with soaring prices and limited inventory, there are signs that it might be starting to cool down slightly. Understanding these trends is crucial for navigating this dynamic Seattle market, whether you’re a buyer looking to enter or a seller aiming to capitalize on the current conditions.
Is Seattle a Seller’s Real Estate Market?
Yes, Seattle is still considered a seller’s market in 2024, though there have been some shifts. Here’s what to consider:
- Low inventory: There are more buyers than available properties, which gives sellers leverage.
- Faster sales: While not as fast as in the past, homes are still selling relatively quickly.
- Price appreciation: Housing prices are still rising year-over-year.
However, there are signs of a slightly less competitive market:
- More listings: Inventory is increasing compared to the height of the seller’s market.
- Fewer bidding wars: While homes may receive multiple offers, it’s not as common as before.
Seattle Real Estate Appreciation Over the Years
Seattle’s real estate market has been a consistent source of headlines, and for good reason. The city has experienced significant home value appreciation over the last decade, making it a lucrative market for sellers and a challenging one for aspiring buyers.
A Decade of Strong Growth
Seattle’s housing market has outpaced national averages for the past ten years. The cumulative appreciation rate during this period sits at an impressive 98.36%, placing it within the top 30% of cities nationwide (NeighborhoodScout). This translates to an average annual appreciation rate of 7.09%, showcasing a consistent upward trajectory.
Breaking Down the Numbers
The table you provided offers a valuable breakdown of appreciation rates across various timeframes. While the long-term trend is undeniably positive, it’s important to note recent fluctuations. The latest quarter (Q3 2023 – Q4 2023) witnessed a slight decline of -1.24%, which aligns with a national trend of a cooling market. However, when compared to the past year (-0.38%) and the past two years (2.35%), the overall picture remains one of stability.
Looking further back, the past five and ten years continue to paint a rosy picture. Appreciation rates of 19.01% (past five years) and 98.36% (past ten years) solidify Seattle’s position as a strong performer in the housing market.
Seattle vs. The Rest
The table also offers a valuable comparison to the broader context. Consistently ranking first or near the top when compared to the state of Washington (WA) and within the top ten nationally highlights Seattle’s exceptional performance in terms of appreciation.
While the national appreciation rate since 2000 sits at 4.94%, Seattle boasts a much higher figure of 218.33%. This significant difference underscores the unique dynamics at play in the Seattle market.
Looking Forward
Seattle’s real estate market remains a topic of much discussion. While the recent cool-down is a notable development, the long-term trend points towards continued appreciation, albeit at a potentially slower pace. Factors like economic conditions, job growth, and interest rates will undoubtedly influence future trends.
Whether you’re a homeowner looking to capitalize on appreciation or a potential buyer navigating a dynamic market, understanding historical trends is crucial. This information can help you make informed decisions and develop realistic expectations.
Why is the Seattle Housing Market So Hot?
Seattle’s housing market has been a seller’s dream for years, fueled by a combination of factors that create intense competition for a limited resource: homes.
- Tech Boom and Job Market: Seattle’s status as a major tech hub attracts a constant stream of employees from established companies and startups alike. This influx of well-paid professionals creates a strong and consistent demand for housing in the city and surrounding areas.
- Limited Supply: Geographically, Seattle is hemmed in by water on one side and mountains on the other, restricting urban sprawl. Zoning regulations and a hilly landscape further limit the developable land available for new construction. This constraint on new housing supply keeps the number of available homes lagging behind the growing number of potential buyers.
- Economic Factors: “Historically low interest rates” in recent years made mortgages more affordable, further inflating demand. While rates have risen in 2024, the market seems to be adjusting and staying relatively stable for now.
Seattle Housing Market Predictions 2024
Seattle’s housing market has been a consistent source of national intrigue. Once known for its red-hot seller’s market, recent trends suggest a shift towards a more balanced playing field. Let’s delve into the data and see what experts predict for the Emerald City’s housing market in 2024 and beyond.
The Current Trends
Seattle boasts a healthy median home value of $886,253 (Zillow), reflecting a 3.5% increase year-over-year. Homes are flying off the shelves, typically going into pending status within a brisk 7 days. This indicates continued seller leverage, but with a twist. The median sale-to-list ratio sits at a near-even 0.996, suggesting some room for negotiation compared to the past.
Data Breakdown:
- Median Sale Price (March 31, 2024): $816,417
- Median List Price (April 30, 2024): $796,000
- Percent of Sales Over List Price (March 31, 2024): 37.3%
- Percent of Sales Under List Price (March 31, 2024): 42.7%
While nearly 40% of properties sold above asking price, a significant portion (42.7%) also sold under. This highlights a potential shift from a seller’s market dictatorship to a more balanced negotiation environment.
Forecast: Moderate Growth, Not a Boom or Bust
Most forecasts predict moderate growth for the Seattle housing market in 2024 and 2025. The Metrostudy forecast for the Seattle-Tacoma-Bellevue MSA (Metropolitan Statistical Area) anticipates a 0.5% increase by May 31st, 2024, followed by a slight dip of 0.4% by July 31st. The year-end prediction for 2024 shows a small decline of 0.9%.
The Seattle-Tacoma-Bellevue area, also called the Puget Sound region, is a major metropolitan area in Washington state. It’s the 15th largest in the US, with over 4 million residents. Seattle is the anchor city, known for tech giants and a vibrant coffee scene. Tacoma is a port city with a historic feel, while Bellevue is a business center. The area boasts stunning natural beauty with mountains and water surrounding it.
Why the Moderation?
Several factors contribute to this predicted moderation:
- Rising Mortgage Rates: Higher interest rates can make purchasing a home more expensive, potentially dampening buyer enthusiasm.
- Increased Inventory: While inventory remains tight compared to historical levels, there are signs of a slight increase, giving buyers more options.
- National Economic Trends: Broader economic uncertainties can impact local markets, leading to a more cautious approach from buyers.
Will it Crash or Boom?
The Seattle market is currently in a state of transition. While sellers still hold some advantages, the lightning-fast sales and bidding wars of the past may be subsiding. This creates a more balanced environment where both buyers and sellers can approach the market with a sense of cautious optimism.
The Seattle housing market remains a dynamic landscape. While significant price increases aren’t predicted, the market is unlikely to experience a dramatic downturn either. For those considering buying or selling, staying informed about current trends and seeking professional guidance can be crucial for navigating this evolving market.
This graph illustrates the growth of home values in the region over the past year, along with a forecast suggesting this trend will likely continue for the next year.
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