Seattle Real Estate News

With rising home prices and the cost of living climbing due to inflation and tariffs, affordability remains a top concern for prospective homebuyers. Yet despite these challenges, there are still practical strategies to help buyers make smart moves in today’s market. One of the most important things for buyers to understand is that home values tend to rise over time. Historically, the housing market has appreciated in value in all but a handful of years over the last eight decades – five of them took place between 2008 to 2013 and two in the 1950’s – where it was zero growth. Waiting for a market crash or better timing may lead to higher home prices down the road. Buyers who purchase now can always refinance if interest rates drop later—while locking in today’s home price.

 

For those concerned about upfront costs, down payment assistance programs can be a game changer. Rather than spending months saving a few thousand dollars—during which time home values may increase—buyers can use available programs to get into a home sooner and start building equity. Affordability also hinges on credit. Even for buyers with less-than-perfect scores, there are tools and resources to guide them through improving their credit and qualifying for a loan. Paying down credit cards or resolving collections can open the door to financing opportunities.

 

There are also signs the market may be shifting slightly in buyers’ favor. Inventory is up to its highest level in five years, homes are sitting longer on the market, and many are selling below asking price. Additionally, higher interest rates have motivated more sellers to offer concessions—giving buyers more negotiating power than they’ve had in recent years. 

 

Despite the hurdles, there is opportunity in today’s market. With the right guidance, support, and programs, buyers can take meaningful steps toward homeownership and avoid the higher costs of waiting.

Posted in:Housing Market and tagged: Housing Market
Posted by Sam Kader on May 20th, 2025 6:09 PM

Is Homeownership Still Within Reach? For many in the Puget Sound region, homeownership has long symbolized stability and success. But in today’s market, that dream is becoming harder to achieve — even here in Seattle, a city known for its strong economy and high quality of life.

What it takes to buy a home in 2025? Nationwide, the median listing price hit $431,250 in April 2025. To afford a home at that price, a buyer needs to earn at least $114,000 a year — assuming a 20% down payment, a 30-year fixed-rate mortgage, and keeping monthly housing costs below 30% of gross income (a good rule of thumb).  Just six years ago, that same home would have cost significantly less. In 2018, the median price was around $314,950, and mortgage rates hovered near 4.1%. Today’s average rate? A steeper 6.76%, which has pushed affordability further out of reach.

In Seattle, things are even more challenging.  Seattle buyers face higher barriers - Seattle’s home prices are well above the national average. According to local MLS data, the median home price in King County in April 2025 officially reached $1 million  — meaning the income needed to buy a typical home here often exceeds $180,000–$250,000 per year, depending on your down payment and debts. For many buyers, particularly first-timers, that’s a tall order. 

Seattle isn’t alone. In other major metros like San Francisco, San Jose, and Boston, the income needed to afford a home tops $200,000 annually, and in some areas, it’s over $370,000.

How did we get here? During the pandemic, record-low interest rates ignited a buying frenzy across the country — and Seattle was no exception. Bidding wars were the norm. Some homes sold for hundreds of thousands over asking. Prices surged more than 50% between 2019 and 2024. But when rates began climbing in 2022, the market shifted. Sales slowed sharply. In fact, 2023 saw the lowest volume of U.S. home sales in nearly 30 years.

Signs of Hope for Seattle buyers? There’s some good news.

  • Home prices are rising more slowly than during the boom years. 
  • The median listing price increased just 0.3% year-over-year in April.
  • Inventory is improving. Active listings in the Seattle metro area rose significantly this spring, giving buyers more options and reducing competition.
  • Price reductions are becoming more common — roughly 18% of listings nationally saw cuts last month.
  • Sellers are becoming more flexible on pricing, and the market is starting to rebalance — which could create opportunities for buyers who are prepared.

What should buyers in Seattle do? If you're hoping to buy in the Seattle area this year, preparation is everything. Here are a few smart steps:

  • Get pre-approved for a mortgage early so you know what you can comfortably afford. Do this before you start looking for houses. It's a quick process and it provides security and comfort knowing how much you could afford. 
  • Understand your financing options — including FHA, VA, HomeReady, and other low-down-payment programs.
  • Talk to a local mortgage broker (like us) who can help navigate jumbo loan options, rate buydowns, or second mortgage strategies tailored to high-cost areas like King, Snohomish, and Pierce counties.
  • Not all mortgage brokers are alike. A good mortgage broker must have empathy, a good listener, solutions provider with access to multiple loan programs from nationwide wholesale lenders. 

Even in a market with elevated prices and rates, there’s opportunity for savvy buyers — especially as sellers become more realistic and inventory continues to grow. 

Thinking about buying this year?  Let’s talk. We’ll help you understand your numbers, compare loan options, and put together a game plan for success — right here in the Seattle market or in anywhere else in Washington. 

Posted in:Housing Market and tagged: Housing Market
Posted by Sam Kader on May 3rd, 2025 4:35 PM

April 2025 - Seattle’s Million-Dollar Homes Now Entry-Level for Buyers

Seattle, once known for modestly priced homes and thriving neighborhoods, has seen the cost of single-family houses rise to staggering new heights. Today, $1 million affords what many would consider an entry-level home — typically an older, smaller residence, often requiring repairs or updates.

In today’s market, even with a budget exceeding $1 million, buyers often struggle to find a suitable home within desirable communities such as Greenwood, Phinney Ridge, and Ballard. In a city where the median price for a single-family home now stands at exactly $1 million, compromises on size, condition, or location are now common. Areas like Beacon Hill, West Seattle, and Southeast Seattle offer slightly more affordable options under $1 million, while Eastside suburbs like Bellevue and Mercer Island are far more expensive, with median home prices well over $2 million.

According to data from the Northwest Multiple Listing Service and Zillow, today’s million-dollar homes are markedly smaller than in years past, and competition remains fierce for well-situated properties. Homes located near public transit and amenities tend to attract multiple offers, while condominiums and townhouses see less buyer enthusiasm.

Seattle’s high cost of land and construction continues to limit the building of traditional detached homes, with many builders turning instead to townhomes and condominiums. Consequently, buyers who wish to remain within city limits must adjust their expectations or prepare to spend considerably more.

Even tear-down properties now often command prices exceeding $1 million, driven largely by the value of the land itself.

Despite the challenges, the desire to own a home within Seattle remains strong — a reflection of the enduring appeal of urban living and the lasting spirit of homeownership.



Posted by Sam Kader on April 28th, 2025 11:23 AM


Seattle has lost a significant amount of affordable housing, particularly in the 2010s, leading to a dramatic rise in homelessness. In 2014 - the transformation of Panaroma House, an 18-story apartment building on First Hill, when new owners evicted tenants, renovated the building, and double rents - part of citywide trend where older, once affordable apartments became unaffordable. 

Key Factors Behind the Crisis:

  1.  Rent Increases in Older Buildings: Many of Seattle’s affordable units were older buildings with lower rents due to outdated conditions. However, landlords either renovated and raised prices or increased rents without major upgrades.  
  2.  Housing Shortage & Tech Boom: Seattle's population surged in the 2010s, driven by high-paying tech jobs. However, housing construction lagged, leading to a bidding war for available units.
  3.  Impact on Low-Income Renters: Those on fixed incomes or earning minimum wage struggled to keep up with rent hikes. Many were forced into overcrowded housing or onto the streets when they couldn’t pay. 
  4.  Homelessness Doubled: The lack of affordable housing contributed to homelessness rising from 2,800 people in 2010 to 5,600 in 2020. By 2024, over 16,800 people were homeless in King County.

Attempts to Address the Issue:

A surge in apartment construction in the 2020s temporarily slowed rent increases, improving affordability for middle-income renters. However, construction costs, high interest rates, and lower housing permits in recent years could lead to renewed housing shortages and rent hikes, putting more people at risk of homelessness.

Without continued housing development, Seattle could repeat past trends, forcing its most vulnerable residents out of the market.

Posted in:Housing Market and tagged: Housing Market
Posted by Sam Kader on April 28th, 2025 9:21 AM

Mortgage applications surged 11.2% last week, continuing a strong start to the spring homebuying season, according to the latest Mortgage Bankers Association (MBA) report. Falling mortgage rates have fueled demand, with the average 30-year fixed rate dropping to 6.67%, its lowest level since October 2024.

  • Refinance applications soared 16% from the previous week, marking a 90% year-over-year increase.
  • Purchase applications rose 7% seasonally adjusted, up 4% from last year.
  • FHA purchase applications jumped 11%, while VA loan applications increased to 15.9% of total volume.
  • Average loan size hit a record high of $460,800.

The March MCT Indices Report showed a 27.91% increase in mortgage lock volume, aligning with seasonal trends. Analysts expect continued strength in mortgage activity through March and April, with possible slowing in the summer.

Looking ahead, market watchers anticipate the Federal Reserve will hold rates steady in March and May, with a potential rate cut in June, depending on economic indicators like tariffs, Nonfarm Payroll, and inflation data.

Posted by Sam Kader on March 13th, 2025 9:22 AM

Since 2020, the income needed to afford a typical house in the Seattle-area has almost doubled from $120,000 in 2020 to $214,000 in 2024 – thanks to skyrocketing home prices and interest rate hikes. Mortgage rate increases over the last 18 months  drove up the monthly cost of buying a home. At the same time, a shortage of homes for sale kept Seattle-area home prices from plummeting.

Real estate economists expect interest rates to dip some in 2024, but not to drop dramatically since it's an election year and the Fed seems  happy with it's current inflationary policy.  Fannie Mae projects the rate on a 30-year fixed mortgage will average 6.7% in 2024 and 6.2% in 2025, as the Fed continues to try to fight inflation. Lawrence Yun, chief economist at the National Association of Realtors, has a similar, but slightly lower, projection that rates will average 6.3% in 2024.  

Despite the modest cooling in late 2023, a buyer in the Seattle area now needs an annual household income of nearly $231,000 a year or twice the city's median household income to afford the area median price of nearly $750,000. 

Seattle-area home shoppers need to make nearly $214,000 to comfortably afford a typical home, assuming a 10% down payment and current interest rates, according to a new Zillow analysis. That's 79% higher than in 2020.

While the income needed to afford a home shot up 79% from January 2020 to January 2024, median income in the region increased only about 22%, the analysis found. According to Zillow’s based on the housing affordability index from the Washington Center for Real Estate Research at the University of Washington, homebuyers earning the median income can afford a median-priced home in only two of Washington’s 39 counties, Lincoln and Columbia. The index assumes a 20% down payment and a household spending only 25% of its gross income on mortgage payments. People are renting longer instead of buying a home.

Despite recent rate cuts from the Federal Reserve, a major structural problem remains - close to 60% of homeowners have outstanding mortgages that are locked in at rates below 4% according to Redfin. Few homeowners are listing their properties for sale due to this “lock-in-effect” or golden hand cuffs" either they bought their house or refinanced during the pandemic era (2020 – 2022). Even, if they are willing to sell – their purchasing power is reduced drastically due to high mortgage rates.  That combination has throttled the housing market as homebuyers struggle to get in the door. 

So, how are homebuyers coping?

  • Many homebuyers are spending more than 40% of their income on housing (10% more than what is recommended).
  • Some buyers rely on loans or gifts from family members to help cover down payments and closing costs.
  • There are several financing options for homebuyers with low down payment - HomeReady program with 3% down payment or FHA with 3.5% down payment or VA financing with 0% down payment.
  • Others are teaming up with friends to afford a home or leaning toward condos and many are simply waiting longer to buy. 
  • Work with a mortgage broker to obtain better mortgage rates.

For those who succeeded in the current market – congratulations since property appreciation and Return on Investment (ROI) have been in double digits.

                                 

Since 2020, home values have skyrocketed particularly in outlying areas that offer more space and affordability. For example, according to ZIP-code-level data from Zillow, the value of a typical home in a zip code covering Seattle’s Capitol Hill and Central District neighborhoods increased about 8% from 2020 to 2024, compared to 51% in a Renton zip code and 61% in Mill Creek.

Posted by Sam Kader on September 16th, 2024 12:19 PM

In February 2023, King County home prices tumbled 7% with the median home sold for $800,000. The biggest difference in 2023 is the increase in mortgage rates. Higher rates mean less purchasing power for potential homeowners and in turn creating less competition for homes.  Some home sellers are waiting to see if rates would dip down again and markets would pick back up.  Others want to make sure their jobs are safe before making a move. 

The inventory was already tight before but now with homeowners with lower mortgage rates – they are staying put longer and not listing their homes. Others are becoming a landlord instead of selling especially if they have extremely low interest rates on their current property. 

To attract potential buyers, sellers are taking on more home improvement projects such as painting, upgrading carpets or replacing light fixtures and faucets before listing their properties.  Buyers are demanding more to compensate for higher  mortgage rates. 

Find an experienced local mortgage broker. If you find yourself in a bidding war, a local broker as opposed to a big bank can make all the difference.

 

Posted by Sam Kader on April 28th, 2023 11:45 AM

Since March of 2020 and the COVID-19 Pandemic, "normal" has been difficult to describe and for those thinking of buying a home over the last few years, the market has been anything but what used to be though as "normal".  Property appreciation ascended rapidly due to high demand and lack of inventory  and mortgage rates jump significantly due to economic concerns. 

To buy now or wait. Higher mortgage interest rates  generally mean a larger monthly payment. Mortgage rates change daily and PLEASE do not expect rates will come back down to 2021 level again.  There are options to lower your rate such as with temporary rate buy-down option or with an Adjustable Rate Mortgage (ARM). 

Your goal is to have a monthly mortgage payment that is within your budget and not to overstretch yourself financially leaving nothing for repairs, living expenses and emergency savings. If you can comfortably afford the mortgage payment, then now is the time to buy. Else, waiting would be more prudent. 

Timeline. If you are planning to stay put for only a year or two, in this current economic cycle, waiting would be more prudent. 

Housing market. Buying a house in a more balanced or "normal" market when you are up against 1 or 2 other buyers rather than 20 and where you can actually inspect the house may be better fit your risk appetite than buying during the 2021 housing market.

Posted by Sam Kader on April 28th, 2023 11:37 AM

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
The federal government recently classifies a family of four earning up to $117,400 as low-income in three counties around the Bay Area in California. It's used to determine eligibility for federal and local housing-assistance programs, but it's different from the federal poverty guidelines. To generate the number, officials at the Department of Housing and Urban Development (HUD) factor in the median income and average housing costs in an area.  In the Seattle-Bellevue area, $80,250 classifies a family of four as low-income. As tech industry has drawn legions of highly paid workers to the area, the prices of homes isn't the only thing that has gone up - transportation, utilities, and food are also costly.  Many residents who have been forced to move farther inland now face grueling commutes to their jobs. The "low-income" designation allows people to qualify for affordable housing and a variety of government programs such as those for first-time home buyers.  

What it means in the area is that teachers, first responders, people who grew-up here of average income are being forced out by the high prices. The very success of the place undermines the viability of life for at least the lower half of the population. Those are the people who get the forgotten in the narrative of the glamour of tech changing the world. 

What makes cities such as Seattle great is its diversity, its creative and innovative economy and its free spirit. But the harder it is to house our artists, teachers, restaurant workers, health-care providers, the more we put the great spirit and the strong economy at risk. 







Posted by Sam Kader on July 2nd, 2018 10:44 AM

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