This blog entry is part of an ongoing series for home buyers across the Seattle metro area. In previous articles, we’ve examined housing market conditions in places like Bellevue, Kirkland and Lynnwood. Today, we’ll look at the current real estate market in nearby Redmond, Washington.
The following information will be useful for anyone planning to buy a home in Redmond in 2018 or 2019.
At a glance: Redmond is a city of around 62,000 people located in King County, Washington, about 16 miles east of Seattle. Microsoft is headquartered in Redmond and is the city’s top employer by far. As of September 2018, the median home price in the city was around $856,000. That was higher than the median price in Seattle during the same month.
The Redmond Housing Market in 2018 and 2019
In many ways, the Redmond real estate market is similar to Seattle’s. In both cities, housing inventory is very tight right now and homes tend to sell quickly as a result. House prices in both areas have risen steadily and significantly over the last few years.
According to Zillow, the median home value in Redmond, Washington was around $856,800 as of September 2018. That was 8.7% higher than the same month a year earlier. The median sales price (a slightly different metric) was around $880,000 in August.
That’s the first thing you should know about buying a home in Redmond. On average, homes are more expensive now than they were last year.
Price growth appears to be slowing down within the local housing market. While values in Redmond and other Seattle-area cities will probably continue to rise over the next year, they are doing so at a slower pace. This is another important trend that’s relevant for those planning to buy a home in Redmond in 2018 or 2019.
In 2019, we will probably see continued home-price appreciation in this market. That’s the general consensus among housing analysts and economists. But the year-over-year gains might be smaller in 2019 than they were this year and last. Zillow, for example, recently predicted that the median home value in Redmond would rise by around 2.1% over the next 12 months (ending in August 2019). That’s a more “normal” rate of appreciation, compared to the 8% to 9% gain of the last 12 months.
Inventory Situation Has Improved for Home Buyers
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 August 2018, 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.
With that being said, housing inventory has increased a bit over the last year or so. According to a September 2018 report from the Northwest Multiple Listing Service:
“The latest numbers from Northwest MLS show wide-ranging changes in the volume of active listings when comparing the 23 counties in the report. In Clark County, inventory doubled from a year ago to lead the list based on percentage gains. King County was runner-up with a 74.3 percent increase, rising from 3,329 active listings a year ago to 5,803 at the end of August.”
So there are more homes listed for sale in Redmond today than a year ago, and that’s a positive sign for home buyers. Still, the local housing market will remain tight for the foreseeable future.
Conclusion: What does all of this mean for those planning to buy a home in Redmond? Among other things, it means you can expect a “lively” house-hunting experience with plenty of competition from other buyers. During early summer 2018, homes listed for sale in Redmond spent a median of just seven days on the market. That means they’re selling quickly — much faster than the national average.
Disclaimer: This article includes data, forecasts and commentary from third-party sources not associated with our company. We have presented them here as an educational service to our readers.