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Are you thinking of buying a house in the Seattle metro area in 2023? Do you have questions about current real estate trends and conditions? Then you’re in the right place!
Home values are increasing in the Seattle area according to Zillow. Competition among home buyers will likely remain high due to limited inventory. Those are just two of the things you should know when buying a house in the Seattle area in 2023. Here’s an in-depth look.
In the last 12 month period, home values in the Seattle metro area have increased 21.7%, according to Zillow, and are expected to increase over the upcoming 12 month period. The median price is now around $706,964 for the Seattle-Tacoma-Bellevue metro area, and about $888,202 for the city of Seattle.
The economic research team at Zillow is predicting further increases over the coming 12 month period. In December 2021, they estimated that home values in the Seattle Metro area would increase by 14.7% over the next 12 months, keeping up the pace as the previous 12 months.
The bottom line: If you’re buying a house in the Seattle metro area in 2023, you should know that home values are increasing. Simply put, would-be buyers in the Seattle market have gone elsewhere due to higher prices, though competition in the city remains very competitive.
The real estate market itself is still reasonably competitive. This is largely the result of limited inventory. There are plenty of buyers in the market right now, due to population growth and job market improvements. But inventory is still limited, and so competition is still high. Buyers should still be aware that it’s a seller’s market.
According to recent data, inventory in Seattle and the surrounding King County is very tight right now, More specifically, there is around a 0.38-month supply of available housing.
According to recent data, Kitsap County is also showing signs of robustness. This is due to its relative affordability and proximity to Seattle. Many would-be buyers in the Seattle market are drifting north in search of more affordable prices.
The median price in Kitsap County is about $542,798, which is a far cry from the prices in King County, which are currently $827,469.
The bottom line: Buyers who are planning on buying a house in the Seattle area in 2023 should be prepared for competition. This means having your financing lined up before you enter the market, and making a strong and timely offer when the right property comes along.
Home prices within the city of Seattle are higher now than they’ve ever been before. This makes buying a home in Seattle very difficult for many would-be homebuyers.
The good news is that real estate prices drop considerably as you move outside of Seattle into the surrounding areas. So if you don’t mind a longer commute, or you have the flexibility to work wherever you want, consider buying in one of those areas.
Home prices in the metro area cover a pretty broad spectrum. There’s something for almost any budget, if you look in the right place. So don’t limit yourself.
Seattle proper is among the more competitive real estate markets in the country right now. It has been among the hottest for a while. High demand and limited inventory have forced home buyers to compete fiercely, especially in the more sought-after areas. As a result of these trends, the median home value in Seattle has grown to $888,202 as of December 2023.
But there are more affordable options for people who want to buy a home in the Seattle metro area, but not necessarily within the city itself.
Recently, the chief economist for the real estate data company Zillow recently prepared a report for Seattle NBC affiliate King 5 News. It listed five of the most affordable cities and housing markets in the Seattle area, based on the percentage of income that goes toward housing costs in each area.
Zillow’s economic research team looked at the median income for various cities in the Puget Sound area, and compared that to median home values. These areas continue to be relatively more affordable when compared with Seattle proper.
In the city of Seattle, people are spending about 25% of their income on housing. Here are five more affordable cities in the metro area, along with the percentage of income needed to cover mortgage and housing costs:
As of December 2021, the median home price in Marysville, Washington was $564,217. In Seattle, it was $888,202 at the same time. That goes to show how much more affordable housing becomes when you drive a little further north (in this case).
With a median home price of around $473,206, Tacoma is another affordable option for those who want to live in the Seattle area.
On the other end of the spectrum, the least affordable city in the Seattle area was Bellevue, Washington. People there spend nearly 30% of their income to cover their mortgage and housing-related expenses. As of December 2021 the median home price in Bellevue was $1,321,493.
“Seattle is certainly a very hot housing market right now,” said Dr. Svenja Gudell, Chief Economist for Zillow. “We’re seeing a lot of demand, a lot of newcomers to the area and as that continues, we’ll see even more of these outlying communities start to heat up a bit and get more expensive.”
Even though the Seattle area no longer has the highest bidding war rate in the country, it’s still a competitive market. Many buyers are interested in moving to Seattle. That’s just one reason why home buyers should be pre-approved for a mortgage loan, before making an offer on a house.
There’s a high level of demand for homes in the Seattle metro area. Demand has tapered off a bit due to high prices, but many properties still receive multiple competing offers within days of coming onto the market.
This is known as a real estate bidding war. Previously, Seattle was among the toughest markets in the country when it came to dealing with multiple competing offers.
In the Seattle metro area, thanks to rising prices in the area, shrinking inventory, and increased demand, bidding wars are commonplace. Buyers are encouraged to put their foot forward and get their finances in order before putting in an offer on a home in Seattle.
By definition, a real estate bidding war occurs when there is strong demand for a property listed for sale. This often coincides with housing inventory shortages, which results in an imbalance between supply and demand. Inventory in King County is very tight, and demand is high.
It’s not uncommon for Seattle homes to see multiple competing offers within days of being listed. Competing offers tend to drive home prices up, which is what we’ve seen a lot in the Seattle real estate market. 63,0
Within the city itself, the median price for a single-family home is now $960,925 and prices may continue to rise through early 2023.
In a competitive market like Seattle, where bidding wars are still likely to happen, home buyers need to bring their ‘A’ game. Among other things, this means having your financing lined up before you start shopping for a home.
Buyers making cash offers should have sufficient funds in the bank, with bank statements to prove it. Buyers using mortgage loans should get pre-approved by a lender.
Pre-approval is when a mortgage company reviews your financial situation to determine if you’re a good candidate for a home loan, and how much you’re able to borrow. Sellers have come to expect pre-approval letters from buyers, especially in active real estate markets like Seattle. If you make an offer to buy a house in Seattle, but you don’t have your financing lined up, the sellers will be more inclined to reject it.
Summary: Recent predictions from housing analysts suggest that the Seattle real estate market could increase throughout 2023 in terms of home price valuation. While there are factors which could turn this around, most analysts project slowing increases in home values over the course of the next 12 months.
In fact, a recent forecast for the Seattle housing market extending throughout 2023 suggests that the city will increase in median home value quite a bit. Strong demand is a contributing factor to this market trajectory.
Home sales are slowing as mortgage rats rise and that’s opening up inventory. In 2023, home values may peak and then start to drop as the landscape shifts to a seller’s market.
Clearly, there continues to be a high demand for housing in the Seattle Metro Area. The Seattle market has become less accessible given the rapid, abnormal gains we saw in previous years, and the market continues to be tough for some to get into because of continued high home prices in the Seattle metro area and ongoing increases in prices.
Of course, the market may be impacted by factors unforeseen by market analysts. The recent expansion of Amazon to Bellevue may drive up prices in the Bellevue market, and we may see some tech employees flock to Seattle as a response. The Bellevue area already has 10,000 Amazon employees living in the area.
While the inventory situation in the Seattle market improved in 2018 and 2019, inventory is very tight right now in Seattle, the Seattle Metro Area, and King County as a whole. There is around a 1.6 to 2.2-month supply of housing available in the region right now, which is a far cry from what a “balanced” market is supposed to look like at 5- to 6-months supply.
Buyers should still expect competition when they try to enter the Seattle market. Demand may very well increase. In short, buyers should expect quite a bit of competition.
Predictions for the Seattle real estate market in 2023 send a clear signal to home buyers: When entering the market, you should be prepared for stiff competition. In this context, “preparation” means having your financing lined up ahead of time, and also having a good understanding of current market conditions.
DISCLAIMER – This article contains forecasts and predictions relating to the Seattle Metro Area real estate scene through 2023. These forward-looking statements were provided by third parties not associated with our company. We have presented them here as an educational service to our blog readers.
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington serving the entire state, as well as Oregon, Idaho, and Colorado since 1992. We offer many mortgage programs to buyers all over the Pacific Northwest. Contact us today with any questions you have about mortgages.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.