Seattle Housing Market 2022: Prices, Trends & Forecast
The Seattle housing market made headlines for years. The market was hot before the pandemic. Properties have continued to appreciate. During the pandemic, it was one of the hottest markets nationwide. Now, this housing market might be finally cooling off. Keep reading to learn about Seattle housing market prices, trends, and forecasts.
Seattle Housing Market Prices
The Seattle housing market shows the same signs that we’re seeing in housing markets nationwide. Prices are rising throughout the housing market. The average price for all home types in Seattle is $845,000, up almost 8% compared to last year.
Single-family homes are the most popular home choice for buyers, and they saw a significant price increase. The average price for a single-family home is $965,000. That’s a 4% increase year over year.
Townhouses are another housing category that saw a price increase. The median price for townhouses is $780,000, an increase of almost 10% yearly.
Condos and co-ops are the only housing category that saw a price decrease in the Seattle housing market. The median price for homes in this category is $482,500, a decrease of almost 6% year over year.
According to this article, this trend is seen throughout the Seattle area. Sales are down, prices are barely increasing, and there are quite a few reasons to pay attention to the Seattle housing market trends.
Seattle Housing Market Trends
Seattle homes are popular, but the housing market is slowing down. In October 2022, about 645 homes were sold, a decrease of almost 50%. Houses only spent about 13 days on the market, which is better than we see in some housing markets, but it’s still six more days than we saw in the Seattle housing market last year.
It’s no surprise that almost $1 million homes on the Seattle housing market aren’t selling like they previously were. About 416 homes sold were single-family homes, almost a 39% decrease year over year. They’re spending an average of nine days on the market, an increase of two days from last year.
Townhouses made up 103 of the homes purchased in Seattle. Year over year, this was almost a 60% decrease. Townhouses spend an average of 14 days on the market before being sold, an increase of 5 days year over year.
Condos and co-ops are a bit more popular due to the decreasing price, but only 159 houses sold fell into this category. That’s a decrease of almost 39% year over year. On average, this housing type spends 27 days on the market, an increase of 12 days year over year.
The Seattle housing market is still considered competitive. Most homes get several offers before being sold.
However, there are signs that the market is slowing down. Almost 40% of houses sold were houses that had price drops. This is a drastic increase compared to the number of houses sold with price drops last year.
According to Redfin, most houses are selling at the list price. However, when homeowners drop the list price and a buyer purchases the house at the new lower price, it still counts as the house being sold at the list price.
Seattle Housing Market Forecast
Right now is a critical time in the Seattle housing market. Although this market is popular, it’s not as overheated as it was during the pandemic. According to this article, the housing market is cooling off even though prices are still high.
Although prices are high, it’s not going to stay that way. As more buyers leave the market to save money, housing prices will decrease slowly. Sellers are dropping prices because they’re having a hard time getting the same high dollar amount they could six months ago.
Eventually, this will lead to more buyers selling houses for lower prices until the housing market completely cools off.
Houses are on the market longer, and this is going to continue. While it’s bad for sellers, it’s great for buyers. Those interested in buying houses have more inventory to look at, and this trend will continue. This isn’t great for seller’s, but you’re not out of luck. If you need to sell your house, we buy houses in the Seattle area!
Right now, the Seattle housing market is a seller’s market. However, buyers have more power at the negotiating table. As the months go on, buyers will slowly see the needle slide toward the buyer side.
The market will not become a buyer’s market. Instead, it will slowly continue to correct itself until it is a neutral market. A healthy market has ample inventory, which is at least six months. Both buyers and sellers have purchase power. The Seattle housing market will continue to see houses sitting longer on the market and price drops as it corrects itself.
Right now is not a great time in the market for sellers, and those conditions are not expected to improve over the next year. Instead, sellers will have a more challenging time selling houses, and many will notice that they aren’t getting as much as they would like. If you’re selling a house for profit, now is the time to sell. It’s easier to sell to a cash buyer, and faster. Check out this page to find cash buyers in Seattle!
However, if you’re a long-term investor, there’s nothing wrong with holding onto the property for the next few years. With many people sounding the alarm over a global recession coming, now is not the time to use property in this housing market for short-term gains. It’s time to either sell or buckle down for the long haul.
Buyers are at an advantage and will continue to see an advantage. Although mortgage rates are increasing, house prices are decreasing. Home buyers can negotiate a lower price, which will continue as the months go on. Because sellers are having a more challenging time selling, you will be more likely to get a house cheaper than you could six months ago.