Seattle Real Estate News

The new year will bring Seattle a new housing market - one without the runaway prices and jaw-dropping bidding wars. Yet still difficult for anyone but the region's wealthiest  shoppers. Here's what real-estate forecasters expect for in 2023.  

After 2 years of home prices shoot up by double-digit percentages - prices are now on the decline driven by elevated mortgage rates and fear of rescission. 

Seattle-are prices could fall faster than the national trend with as much as 10% according to Redfin in part because Seattle home prices are already high and combined with current rising mortgage rates environment - this could push mortgage payments even more out of reach of prospective buyers. 

Could I afford to buy a house? 

The median mortgage payment here in King County is about $4,300 (median means half of mortgage payment is more than $4,300 and half of mortgage payment is less than $4,300).  Here's the current median prices in greater Puget Sound Area.  

By another estimate, Seattle homebuyers must earn $169,000 a year to afford the median home with 20% down payment.  With persistence inflation and stagflation in 2023 - elevated mortgage rates appear to be here to stay after super-low mortgage rates of between 2% and 4% during the pandemic years.  Fannie Mae projects rates will hover around 6% throughout 2023.  Check out our temporary rate buydown option to help you manage your rate for the first few years of your loan payment. 

Many people buy a house and stay put for years so they can build-up some equity when they eventually sell. However, this may not be the case for people who bought in the past few years (between Jan. 2021 through Sept 2022) and to sell in 2023 due to extenuating circumstances.


Posted by Sam Kader on January 8th, 2023 7:30 PM

Why are home prices in Seattle so high so quickly?  The answer is simply - supply and demand.  There are just not enough inventory for sale. In King County last month, 2,000 homes were for sale last month (on average for the last two decades, the region had more than 7,800 homes for sale.)  On average, today's homeowner who sells has owned the home for about 10 years and makes about 64% return on investment (4th highest in the nation). The problem is people who are staying in the area would have to turn around and buy in the same crazy market. Thus, only people who are moving to a cheaper area or downsizing have real financial incentive to sell reducing the number of home sellers. Seattle homeowners also wait longer to sell than anywhere else in the country.   

In addition to not having enough inventory for sale, the demand side is not helping either. King County's population has grown 26% and job growth of 28% which translates that people who are moving here  are financially well off to buy a house. It all adds up to people making a lot more money fighting over a lot fewer houses. Historically, the county had 1 home for sale for every 230 people. Now, there's one home available for every 1,060 people creating bidding war beyond what a home should be worth. 

Are we setting ourselves for another real estate market bubble? Most critics agree that there are not clear signs of another crash because the elements causing previous housing collapse i.e. rampant subprime lending and home owners over extending themselves with  a "liar (stated income) loan"  are not presence this time around. Lenders now are lending to people with good credit and full income and asset documentation. 

Start your Seattle home search here

 

 

Posted by Sam Kader on April 22nd, 2018 5:26 PM

The Seattle housing market has gotten hotter across the board every passing months in 2017 since bottoming out in 2012. Prior to 2006, prices were up nearly 20% from a year before and tumbled back down during the recession. Prices in Seattle are rising twice as fast as the national average and rising faster than anywhere else in the country for the 10th straight month. The typical home in Seattle now costs nearly $750,000 and $860,000 on the Eastside. The new statewide median home has hit a record price of $337,000 according to University of Washington's Runstad Center for Real Estate Studies. Looking for some affordable homes in Seattle adjacent areas

 

Fastest-rising home prices compared to a year ago

1. Seattle +13.4%
2. Portland +8.2%
3. Dallas +7.7%
4. Detroit +7.6%4. Denver +7.6%

Source: Case-Shiller home price index


Posted by Sam Kader on August 31st, 2017 7:14 PM
King County's median single family home price was $560,000 in February up 6.7% from January (that's the biggest jump in home prices in since 2015). Seattle's median home sold for $675,000 in February - nearly doubled over the last five years. Prices are surging largely due to lack of inventory. The number of houses for ale in King County is at its lowest point since at least 2000.

The situation is even worst for condos. The number of condos for sale across the county plummeted 42% from a year ago.

Snohomish County median home prices increased 14.9% year-over-year with the median price of $412,500 in February. Pierce County home costs jumped 12% while Kitsap County saw 9.8% increase. King County's year-over-year price increase to 8.7% was the smallest of 4 local counties.
Posted by Sam Kader on March 7th, 2017 7:31 PM

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