Seattle is known to be a seller’s market due to high home prices and limited inventory; however, buyers can make the process less competitive and profitable by employing specific strategies during homebuying.
As Seattle experienced the COVID-19 pandemic, many homes sold above their listing prices due to bidding wars, which are expected to continue as the market recovers.
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Inventory Levels
Seattle is one of America’s most desirable cities to call home, boasting iconic structures such as the Space Needle and Pike Place Market and corporate giants like Amazon. High-paying jobs draw in new residents looking for homes here – however, due to the high living costs and an industry that falls far short of meeting demand, there can be tight markets here.
According to MLS data and market reports, the Seattle area has witnessed an almost complete dwindle in supply over four months this year – this has increased competition for homes for sale while simultaneously driving prices higher.
Mortgage rates have significantly reduced since their peak earlier this year, making home purchases more accessible for some buyers. Still, any Seattle housing market buyers or sellers must understand its unique nuances if planning to enter or leave this market.
The market is currently highly competitive, with most properties selling quickly for above their list price and buyers competing hard for properties in desirable neighborhoods with good amenities such as recent updates and garage space. As a result, median days on the market for single-family homes rose slightly from five last month to six this month, while condos spent approximately seven days.
Pending sales have steadily increased and reached record levels in Seattle and the Eastside despite reduced inventory levels due to strong buyer demand and tightening market conditions. This trend owes its success to tight markets, limited supplies, and strong buyer interest.
As a result, Seattle and Eastside sale-to-list price ratios continue to reach multi-year highs of 107% and 111%, respectively. Furthermore, homes sell for more than their original listing price in an increasingly competitive environment, suggesting buyers step up and contribute in various ways.
Price Trends
Seattle property prices continue to climb steadily despite increasing mortgage rates and more homes appearing on the market, leading to bidding wars and an extremely competitive housing market where houses sell quickly. Home buyers considering purchasing their dream house here need to act fast by contacting lenders immediately and discussing financing solutions.
While many Seattle real estate agents remain concerned with the state of the market, others remain hopeful. Seattle’s robust job market and high quality of life make it an attractive destination for people from across the nation seeking new opportunities or a change of scenery. Additionally, Seattle is rich with amenities for visitors.
As a result, Seattle’s real estate market continues to attract newcomers interested in purchasing homes. Demand has increased home prices, creating a seller’s market where properties sell quickly for above the asking price.
Seattle’s housing market may have peaked, yet it remains one of the most competitive in the nation. A combination of limited affordable options and slow construction has made it challenging for prospective homebuyers to locate an appropriate house that fits their budget and lifestyle requirements.
As interest rates rise, so will potential homebuyers’ purchasing power decrease, meaning even if someone can afford a home in Seattle today, they may no longer qualify for the same mortgage they did twelve months earlier. Therefore, obtaining pre-approval for your mortgage and understanding your budget before home-hunting is wise.
If you’re considering purchasing a home in Seattle this spring, begin by speaking to a lender and getting pre-approved for a mortgage. This will give you a better sense of how much home you can afford without falling for properties outside your budget.
Bidding Wars
Seattle housing market is back on fire as more sellers enter and home buyers compete more fiercely for properties. Pending sales have skyrocketed while mortgage rates have significantly decreased – making buying in Seattle more cost-effective than last year.
Market trends have been driven by an influx of new residents, particularly highly paid tech employees at Amazon and other firms. They require spacious homes with office areas so they can work remotely during pandemic outbreaks; furthermore, they possess enough financial resources to outbid other buyers for desirable properties.
Low inventory levels and strong demand have created bidding wars between buyers, with some homes selling well above their listed prices. This trend is expected to continue as Seattle remains one of the hottest housing markets nationwide.
Redfin reports that Seattle saw the median home sale price hit $740,000 in March – nearly double the national average. Due to a minimal inventory on the market, meeting buyer demand would take months, thus likely maintaining higher home sale prices in Seattle.
As more homeowners enter the Seattle market and demand is fulfilled for homes, home prices should decline gradually in the Seattle area. But when and how much these costs will drop depends heavily on national trends and local factors. It’s impossible to forecast when or if prices will stabilize accurately.
Home buyers in Seattle must keep abreast of current housing market conditions and take swift action upon finding an attractive property they like. Otherwise, it could take years until enough supply on the market satisfies demand.
If you plan on purchasing a home in Seattle, you should speak to a real estate agent as soon as possible. They will assist in finding the ideal property and guide you through the arduous process of navigating a competitive market while finding lenders who will offer mortgage rates that suit your budget.
The Perfect Storm
Low inventory levels and strong buyer demand drive home values in Seattle upward, creating an ideal situation for sellers as their homes may sell quickly and possibly above the asking price. Conversely, this gives buyers an advantage as bidding wars may ensue over well-priced properties.
Mortgage rates have recently seen a marked increase, impacting affordability; for example, someone who could previously afford a $1 million home may now only qualify for $825,000. Due to this change in affordability, many buyers are withdrawing from the market, and lenders are becoming reluctant to loan money out.
Seattle’s high-interest rates and limited supply of homes contribute to rising home prices, particularly in more expensive neighborhoods such as East Queen Anne and Lower Queen Anne. Seattle is addressing its expensive real estate by expanding affordable housing options and revising exclusionary zoning policies.
Homeowners will take comfort from current market trends that suggest home values are stabilizing and recovery is in sight. A 1-year market forecast predicts an estimated growth in home values of 3.2% – much more moderate than last year’s increase of 6.3%. A decline in home values could make purchasing properties easier for more people, contributing positively to local economies and thus strengthening them further.
Overall, Seattle housing remains a seller’s market for now. The supply of homes may take six months or more to balance out and become a balanced market – something unlikely anytime soon.
Homebuyers looking for homes in Seattle must remain patient while working with an experienced real estate professional to find something suitable. You should work with someone knowledgeable who will ensure you remain part of a winning team!
