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His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate. He’s also the host of the top-rated podcast – Passive Real Estate Investing. While lumber prices have declined by 20%, the gap between supply and demand is still not bridged. Despite the lack of homes to buy, sales have nevertheless been surprisingly strong lately, an indicator of just how strong demand is. And when demand is high but supply is low, prices overall can typically be counted on to go up – which is exactly what we’ve been seeing. The differences are easy to get lost in, but it is all the more reason to look at the percentages because they're calculated from the same assumptions, databases, and perspectives.
Investors are lucky to have several viable exit strategies at their disposal, but none appear more attractive than building a proper rental property portfolio in the wake of the pandemic. Too many important market indicators are pointing towards becoming a buy-and-hold investor to ignore. The median asking price for a home in King County was $840K in November 2022, which is an increase of 12 percent year over year. If the Median Listing Price is increasing, the market is likely “hot,” and homes will sell more quickly.
Seattle Real Estate Market: Prices, Trends & Forecasts 2022
The average sale price of a home in Seattle was $816K last month, up 5.9% since last year. The average sale price per square foot in Seattle is $521, down 2.5% since last year. Seattle’s median home price has followed national trends over the last decade. Home prices in Seattle are up considerably since bottoming out during the Great Recession.
Heat risk estimates how much climate change might increase the typical number of hot days in a year and the likelihood of extreme heat and heatwaves. The latest migration analysis is based on a sample of about two million Redfin.com users who searched for homes across more than 100 metro areas. To be included in this dataset, a Redfin.com user must have viewed at least 10 homes in a three month period. Can sell for about 1% above list price and go pending in around 6 days. The latest real estate investing content delivered straight to your inbox.
Rentals
At the very least, years of cash flow equivalent to Seattle’s median rental rate can help justify today’s higher acquisition costs. With a median rent price of $1,857, it is possible to simultaneously rent out an investment property and have someone else pay down the mortgage. That way, investors could build equity in a physical asset and collect cash flow each month with the right long-term investment.
Because homes are a large investment, home prices are also used as a proxy for household wealth. Even though homes are relatively illiquid, their value can be tapped via home equity loans as happened with great frequency during the housing bubble. Maybe you have plenty of capital, an extensive real estate network or great construction skills— but you still aren't sure how to find opportunistic deals.
Seattle Housing Market Forecast 2022 & 2023
Measured by months of inventory, November’s supply, at 2.36 months, was the best since January 2019 when the overall selection reached 2.4 months of inventory. Both pending and closed sales fell sharply from a year ago, but median prices system-wide edged up slightly (0.88%), from $570,000 to $575,000 across the 26 counties in NWMLS's report. Some buyers are taking advantage of the rising inventory as the market swings to their advantage, while others are waiting for interest rates to fall or expecting prices to fall much further. In the interim, some purchasers are opting for five- or seven-year adjustable-rate mortgages, which reduce the interest rate and monthly payment. With inventory levels still substantially below the long-term average, there cannot be a big increase in supply in the future.
According to Redfin, Seattle has the fastest-cooling housing market in the U.S. As explained by our team of real estate experts, the average home prices in Seattle differ by type of home and area in the city. Apart from identifying the prices of homes in the city, many make the mistake of relocating without factoring in the cost of living and other expenses.
In September, homes in King County sold for approximately the asking price. The average homes sell for about 1% below list price and go pending in around 29 days. The average homes sell for about 1% below list price and go pending in around 24 days. The average homes sell for about 1% below list price and go pending in around 16 days. Homes in Seattle receive 2 offers on average and sell in around 16 days.
Overall, home prices are now up 15.9 percent over the last year and 74 percent over the last five years. If this forecast is correct, Seattle metro home prices will be slightly higher in the 3rd Quarter of 2023 than they were in the 3rd Quarter of 2022. Interestingly, each neighborhood has a distinct feature, making the pricing for homes in the city different. For instance, the University District is a popular area for students.
The Emerald City, not unlike the rest of the country, has been dealing with a supply and demand issue for quite some time. More people than ever before are competing for relatively fewer homes, which would account for the record rate of appreciation in recent history. However, the Seattle housing market is starting to show signs that the sellers are losing power. Prices have declined since the second quarter and buyers are starting to gain traction for the first time in years. That’s not to say prices will reign in completely, but rather that a whole new market is starting to take shape. The following housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com.
The Seattle housing market was at the forefront of the national real estate sector for the better part of a decade. However, historical appreciation rates and higher mortgage rates have resulted in less activity on behalf of buyers. With fewer buyers participating in the market, sellers are losing their stranglehold over the sector, and prices are starting to come down.
Each report comes from a different source, and some protect their methods to protect their competitive edge. Each report comes out at different times, including data taken at different timeframes. It also wouldn't be a surprise to learn that they have varying definitions of "Seattle." Some might include the Eastside and even Tacoma.
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