Summary: Looking to buy in Federal Way in 2019 or 2020? Read on to find out what the market is like today and what it’s forecasted to be in the coming months.
This blog post is part of an ongoing series for home buyers across the Seattle metro area. In previous reports, we examined current real estate conditions in places like Lynnwood, Bellevue, and Kirkland. Today, we will take a look at the housing market in nearby Federal Way, Washington.
The following report will be helpful for anyone who is planning to buy a home in Federal Way in 2019 or 2020. It contains the latest data and trends for this real estate market.
At a glance: Federal Way is a city of about 95,000 located at the southern end of the Puget Sound. It is situated just north of Tacoma, and about 23 miles south of Seattle. As of July 2019, the median home value in Federal Way was around $362,500, making it much more affordable than Seattle.
The Federal Way Housing Market in 2019 – 2020
Home prices in Federal Way, Washington have risen steadily over the last few years, and at a faster pace than most other cities in the U.S. That’s something the city has in common with other housing markets in the Seattle metropolitan area. But it’s also a more affordable real estate market when compared to Seattle itself.
As of July 2019, the median home value in Federal Way was around $362,500. The median value in Seattle during that same month was closer to $717,800. Recent forecasts suggest that prices in Federal Way may rise slightly through 2019 and into 2020, and po.
That’s the first thing to know about buying a home in Federal Way in 2019 or 2020. While the average house price within the local real estate market is higher the national average, it’s still fairly low by Seattle metro area standards. So it could be an affordable alternative for those who want to live in the area but cannot afford Seattle’s much higher home prices.
In Federal Way, tight inventory conditions are fueling competition among home buyers — and leading to quick sales. But in Seattle, the market has cooled somewhat, and the competition among homebuyers is not as fierce as it once was.
Low Supply, Fast Home Sales
According to the latest real estate market and MLS reports, the overall King County had about 1.7-month supply of homes for sale as of July 2019. That’s much lower than the five to six months that is considered to be a balanced market. So the local real estate scene still favors sellers over buyers, from a supply-and-demand perspective.
However, King County has also experienced a big increase in active listings compared to the same time last year. More specifically, inventory in King County increased by 24.4% year-over-year.
This is another important factor for those planning to buy a home in Federal Way in 2019 or 2020.
As you might imagine, the lopsided supply-and-demand situation within the Federal Way real estate market is resulting in fast home sales. Houses and condos listed for sale in the area typically go under contract within the first week.
During the summer of 2019, homes listed for sale in Federal Way spent a median of about 10 days on market. That is significantly lower than the national median during the same time period, which was closer to 35 days. So we’re talking about a fast-moving housing market where homes tend to sell quickly, especially when they’re located in popular neighborhoods.