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Summary: While home prices in Redmond, WA have increased over the past year, the market is still considered ‘cool’ right now. While things were expected to pick up over the next few months, it looks like the market may remain cool over the next few months as a result of the coronavirus pandemic. In this article, we’ll discuss the housing market in Redmond in 2020.
According to the real estate data analysts at Zillow, the Redmond, Washington housing market is cool right now, with home prices having increased just modestly over the past year. Prices are expected to remain stagnant over the next 12 months as a result of uncertainty over the current health crisis. That’s the company’s latest forecast for Redmond real estate market, extending through April 2020.
Redmond Housing Market Forecast Further Into 2020
Redmond is an attractive city to live and work in thanks to its strong job market, natural beauty, and quality of life. Demand is certainly healthy in Redmond, and inventory continues to remain very tight in the city and surrounding King County, though the market is considered cool as of this moment. The slight increase in inventory may have contributed partly to cease on price increases, albeit for now.
According to Zillow, home prices in Redmond have increased 4.7% over the past 12 months, but may dip very slightly over the next 12 months. The average price in Redmond continues to remain high relative to other cities in Washington State, and currently sits at $897,800.
The forecast for the Redmond, Washington real estate market mirrors similar predictions for other cities across the Seattle metro area and King County as a whole. That seems to be the common thread for local markets in the area, from a forecasting perspective.
However, for other markets, the forecasts are quite the opposite. Other nearby cities are experiencing a much hotter market, including the likes of Tacoma where prices have increased by 9.1% over the past year and are now sitting at $354,000.
Meanwhile, the population in Redmond continues to grow. According to Census Bureau data, the city’s population grew 11.6% from 2010 to 2015. This contributes to the imbalance between supply and demand, which is another common theme across the Seattle metro area.
Inventory Situation is Still Tight
The incredibly high prices for homes in Redmond is largely a result of the very tight inventory in the area.
Like many cities in the Seattle area, Redmond has a shortage of homes for sale relative to the number of buyers in the market. As of April 2020, the real estate market in Redmond had just over a one-month supply of homes listed for sale. That’s well below the five to six months of supply that’s considered to be a “balanced” market. So it’s still a pretty strong seller’s market.
The number of listings is also an issue, as they are being directly affected by the COVID-19 pandemic. Sellers may be holding off on listing, leaving fewer homes available for buyers. Supply simply cannot keep up with demand. While there is quite a bit of residential building expected in the Seattle Metro Area, it still may not be enough to resolve the supply shortage that has characterized the area over the years.
According to the Northwest Multiple Listing Service (NMLS), pending sales in Western Washington outweigh new listings. Record-low inventory is characterizing the area, with inventory down 33% from the same time last year.
The local housing market appears to remain tight for the foreseeable future.
What Will Happen During the Remainder of 2020?
Redmond and the rest of King County may have seen a hot real estate market in years past, but right now things are cool, though still competitive. Demand in Redmond and surrounding areas is expected to continue, though how strong this demand will be remains to be seen. There’s so much uncertainty surrounding the housing market as a result of the current pandemic.
The bottom line: Home prices in the Redmond area show signs of cooling, and will likely remain so into foreseeable future. But housing inventory is the big story here. Home buyers entering Redmond real estate market in 2020 should be prepared to compete with other buyers.
Disclaimer: This article contains trends, predictions and forecasts for the Redmond, Washington real estate market through 2020. Data and commentary were provided by third parties not associated with our company. We have presented them here as an educational service to our readers.
Looking to Apply For a Mortgage in Redmond?
Are you ready to apply for a mortgage in Redmond? Sammamish Mortgage can help. We are a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.