The Seattle-area housing market is heating up again, with home prices and sales rising steadily in recent months. This is good news for sellers, but it’s putting a strain on buyers who are struggling to compete in a market with low inventory and high prices.
The median home price increased in all four counties in the Seattle area compared to last year. The Seattle housing market is still a strong seller’s market. However, there are some signs that the market may be starting to cool down a bit.
As reported by the Northwest Multiple Listing Service, both new listings and home sales experienced a notable increase in April 2024 across the Puget Sound region, marking a typical seasonal uptick.
Seattle Home Prices Continue to Rise
The median single-family home price in King County reached a staggering $980,000 in April, marking a robust 12% increase from the same period last year. Similarly, Snohomish County witnessed a rise of 4%, with median homes selling for $799,500. Pierce County experienced an 8% increase, with median prices reaching $565,000, while Kitsap County saw a 6% uptick, with median homes selling for $550,000. Seattle’s median home price surged by nearly 13%, reaching $997,900.
Condo prices in King County also witnessed a significant surge, except in Southwest King County, where the median condo price experienced a slight drop of 6%, settling at $327,450. Conversely, Seattle and the Eastside saw substantial increases of 11% and 17%, with median condo prices reaching $599,000 and $722,500, respectively.
Increased Listings, Yet Limited Housing Supply
While new listings of single-family homes saw an uptick across all four counties compared to the previous month, the supply of homes remains limited, reminiscent of recent trends. One contributing factor to this scarcity is the “lock-in effect,” where homeowners opt to retain their ultralow mortgage rates instead of selling and potentially facing higher rates in the market.
Despite the surge in listings, the supply of homes falls short of meeting the demand, posing challenges for prospective buyers. The prevailing high monthly mortgage payments are dissuading some from entering the market altogether, despite their desire to own a home.
Increased Pending Sales
Pending sales, indicating agreements between buyers and sellers that are yet to close, saw a significant increase across the Puget Sound region, particularly in King County, with a nearly 15% jump compared to the previous year. Redfin reports that the surge in pending sales in the Seattle area this spring is one of the most substantial increases nationwide.
Seattle’s Swift Housing Market
Seattle’s real estate market stands out among its counterparts, with listings flying off the shelves at a remarkable pace. Approximately 80% of Seattle-area homes sold in March were off the market within two weeks, trailing only behind Rochester, N.Y., according to Redfin. This swift turnover reflects the intense demand for housing in the city.
Despite the rapid pace of sales, the months of inventory metric suggests that the market remains tilted towards sellers, with it taking about one month to sell through all single-family homes in King County at current demand levels. While this presents a better outlook for homebuyers compared to the peak of the pandemic-driven market in 2021, it falls short of the balanced market conditions typically desired.
In summary, the Seattle spring housing market continues to showcase remarkable growth, with soaring prices and increased activity shaping the real estate landscape. As the market evolves, navigating these dynamics requires a keen understanding of the current trends and a proactive approach to buying or selling property in the region.