Back to Blog

Why Seattle Will Remain a Seller’s Market in 2021

Sammamish Mortgage
Published:
December 13, 2017
Last updated:
February 26, 2021
In This Article

Are you planning to buy a home in Seattle? If so, you’ll want to know the temperature of the market first. According to certain indicators, it seems that Seattle will remain a seller’s market in 2021. This article will explain why.

Seattle, Washington has been a seller’s real estate market for the last couple of years, and the scales will probably stay tilted in that direction during 2021. This is the result of strong demand from buyers and a limited inventory of homes for sale.

Seattle Still a Seller’s Market in 2021?

It should come as no surprise to anyone who lives in Seattle that the local real estate market currently favors sellers or buyers. This has been the number-one real estate news story of the last couple of years, generating a slew of headlines and media coverage.

Related: Tips for Seattle home buyers

But what about 2021? Will Seattle continue to be a seller’s market this year? Based on current conditions, the answer is a resounding yes.

Exhibit ‘A’ — The Supply Situation

Let’s start with the supply situation. According to housing experts and economists, a balanced real estate market has somewhere around five months worth of supply. When inventory levels drop far below this level, the market tends to favor sellers over buyers.

As of December 2020, Seattle had less than a one-month supply of homes for sale. So the market is still very constrained, from an inventory perspective. This is true for many cities across the country. In fact, the national average was around three months worth of supply in January. And even that is below what’s considered to be a balanced market.

But few cities can rival Seattle in this department. The city currently has one of the lowest levels of housing supply of any city in the country. That’s one of the reasons why Seattle will remain a seller’s market in 2021. There just aren’t enough homes listed for sale to satisfy the current level of demand.

Today’s Seattle Mortgage Rates Apr, 16, Fri, 2021

Exhibit ‘B’ — The Demand Situation

And speaking of demand, homes across the Seattle metro area are selling quickly and often above the original asking price.

Real estate analysts use the “median days on market” measurement to get a sense of how quickly homes are selling in a particular area. More than half of new listings go pending in the first 30 days that they are on the market. This is yet another indicator that Seattle is still a seller’s market.

Demand for homes remains strong across the metro area, with a boost from tech workers.

Prices Expected to Start Rising Again

For about a year-and-a-half from mid-2018 to late 2019, home prices in Seattle actually decreased. Some might say that this price cooling was bound to happen after the few years of double-digit gains that we saw in prices in Seattle.

But home prices in Seattle have been increasing over the past year.

As of December 2020, the average price for a home in Seattle is $783,969. That’s a 10.6% increase from the same time last year. According to Zillow, home prices in Seattle are expected to rise 8.7% over the next 12 months.

That’s one of the reasons why Seattle got higher loan limits for 2020.

Here’s the bottom line to all of this. Due to the high level of demand and severely low inventory, Seattle will likely remain a seller’s market through much or all of 2020.

Not long ago, we created a survival guide for home buyers who were planning to enter the Seattle real estate market. That guide is still very relevant to current market conditions, so it is well worth a read.

Get an Instant Mortgage Rate Quote Today

Ready to Apply For a Mortgage in Seattle?

Whether it’s a buyer’s or seller’s market, teaming up with the experts in real estate and mortgages can help you get a great deal and secure the right mortgage for you. At Sammamish Mortgage, we offer many mortgage programs for borrowers across the Pacific Northwest, including Washington, Oregon, Idaho, and Colorado. We’d love to help. Get in touch with Sammamish Mortgage today to get started.

 

Other Blogs You May Like
Portland Home Prices Rising Steadily in 2021 Portland Home Prices Rising Steadily in 2021
April 14, 2021

Home prices in Portland, Oregon rose very quickly from 2012 to 2017, then slowed down until mid-2019. But since late 2019, home prices in Portland have been rising quite quickly. This article will outline where prices are today and where they are expected to go throughout the remainder of the year.

Read more
2021 Housing Forecast Update 2021 Housing Forecast Update
April 14, 2021

The year 2020 has been a busy one for the real estate market. But what will 2021 be like? Check out this infographic to learn more.

Read more
Salem, OR Housing Forecast: Prices Climb Due to Supply Shortage Salem, OR Housing Forecast: Prices Climb Due to Supply Shortage
April 14, 2021

We’ve written about the Salem, Oregon real estate market in the past, pointing out that limited inventory was driving prices north. More recent forecasts for the Salem housing market suggest that prices will continue to rise throughout 2021. Salem’s housing…

Read more
Top 5 Mortgage & Housing Trends Affecting Buyers in 2021 Top 5 Mortgage & Housing Trends Affecting Buyers in 2021
April 14, 2021

Curious about what sort of trends will impact home buyers in the new year of 2021? You’re in luck! Read this list of the top 5 mortgage and housing trends that will affect buyers in 2021 and get in touch with Sammamish Mortgage for more information.

Read more
The Most Popular Cities In CO For Relocating To Get A Better Deal On A Home The Most Popular Cities In CO For Relocating To Get A Better Deal On A Home
April 13, 2021

Relocating to different cities in CO is often motivated by the cost of home prices. People don’t necessarily move out of their home town because they’re undesirable, but because they’re able to find better prices elsewhere.

Read more
South Beaverton: Popular Portland-Area Neighborhood for Buyers South Beaverton: Popular Portland-Area Neighborhood for Buyers
April 13, 2021

A Recent Report Suggests That South Beaverton Is The Most Popular Neighborhood / Community Within The Portland Area, Particularly Among Home Buyers.

Read more
Is Now a Good Time to Buy a Home in Portland, OR? Is Now a Good Time to Buy a Home in Portland, OR?
April 8, 2021

Summary: Is now a good time to buy a home in Portland, Oregon? It’s a question that many homebuyer hopefuls ask themselves, and for good reason. In this article, we’ll help you determine if 2020 is your year to jump…

Read more
Portland Real Estate Prediction: Low Inventory Will Boost Prices Portland Real Estate Prediction: Low Inventory Will Boost Prices
April 8, 2021

Summary: Buyers want to know how much they can expect to pay for homes and what kind of competition they face, while sellers want to know what their homes are worth and how much they can sell their homes for.…

Read more
Given The Current Mortgage Rates, Should You Refinance? Given The Current Mortgage Rates, Should You Refinance?
April 6, 2021

There are several important factors you should consider before you refinance your mortgage this year, including current rates and your financial situation.

Read more
The Most Popular Cities In OR For Relocating To Get A Better Deal On A Home The Most Popular Cities In OR For Relocating To Get A Better Deal On A Home
April 5, 2021

Many people are looking to buy homes, not across the street, not somewhere else in town, but in other parts of the country. The motivator for this is that there are significant differences in the median prices for home sales in different parts of America. This is not a result of the places being undesirable.

Read more

Begin your home loan process today! Our mortgage advisors are standing by. Request a free personalized rate quote. (425) 401-8787