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Looking to buy in Federal Way in 2022? 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 2022. 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 December 2021, the median home value in Federal Way was around $537,152, making it much more affordable than in Seattle.
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 March 2022, the median home value in Federal Way was around $537,152, as already mentioned. In comparison, the median value in Seattle during that same month was closer to $874,877. Recent forecasts suggest that the market in Federal Way right now is very hot, with prices having increased 20.9% over the past year. As such, homebuyers who hesitate to get into the market in 2022 may find that they’ll be paying higher prices further into the year.
That’s the first thing to know about buying a home in Federal Way in 2022. While the average house price within the local real estate market is higher than the national average (which is currently at $312,728), 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.
There seems to be a common theme in the state of Washington these days: tight inventory. Housing supply is incredibly short throughout the state, and that includes Federal Way.
According to the latest real estate market and MLS reports, the overall King County had less than a 1-month supply of homes for sale as of December 2021. 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.
According to the Northwest Multiple Listings Service (NMLS), King County had just 1,855 active listings in January 2021, marking a 12.42% decrease from the same month in 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.
Typically, many buyers get into the market right after the new year rings in, but so far in 2022, we’re seeing an influx of homebuyers than usual. That, coupled with very low mortgage interest rates and a positive labor force, and increased wages, leads to an increase in home prices and a very hot real estate market.
Homes in the lower price range, in particular, are receiving multiple offers. Even homes in the luxury sector are seeing dwindling inventory, even as high as the $1 million to 1.5 million price range.
Home prices in Federal Way have increased 9.1% over the past months. And they’re expected to continue increasing over the course of 2022.
Right now, pending transactions are higher than new listings being added in all big counties in Puget Sound. Inventory is still on a gradual decline, making it tough to keep up with buyer demand.
Considering how fast prices are expected to rise in Federal Way and how low interest rates are right now, it makes sense to consider making a home purchase sooner rather than later.
If you’re in need of a mortgage in Federal Way, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, WA, and have been serving borrowers in Colorado, Oregon, Idaho, and Washington since 1992. We offer many mortgage programs for you to choose from that best suit your financial situation. Please contact us if you need a mortgage loan to buy a home in Federal Way, or anywhere else in Washington.
Whether you’re buying a home or ready to refinance, our professionals can help.
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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.