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.
Condos provide buyers with a more affordable housing option while offering certain convenience that traditional single-family homes might not. The question is, what is the Seattle condo market forecasted to be like in 2021?
We’re well into January, and that means a lot of Seattle condo buyers are starting to come out of the woodworks following the holidays. And many are wondering the same thing: What will the Seattle condo market be like in 2021? Are prices expected to continue rising? And what about inventory?
In order to create a forecast for the Seattle condo market in 2021, we have to look at what’s happening right now. So let’s start with some current trends.
Seattle Condo Market Trends at the Start of the Year
Seattle’s condo market remained tight in December 2021 due to tight inventory. This supply-and-demand imbalance is pushing prices north.
Condo inventory is not expected to get much better in Seattle and surrounding areas. Right now, there is just a 2-month supply of condos. Four to six months of supply is considered a balanced market, while anything under three months is considered a seller’s market. Clearly, we are still in seller’s market territory for condos, despite the overall Seattle housing market experiencing some cooling right now.
That said, there are a few new high-rise development projects in the works for Seattle and nearby Bellevue, which may help to beef up inventory and relieve the situation slightly. However, demand continues, so it will still be a competitive market in Seattle in the coming months.
But most of Seattle is zoned for low-rise complexes, which puts a cap on the number of high-rise buildings that can go up in the city, thereby limiting the number of condo towers that can be built. In turn, this keeps Seattle rental rates pretty high.
In Seattle, the median price for a condo is roughly $505,000. Condos that are considered “hot” are selling really quickly. , which is down by 11% from the same time last year.
Inventory is the big story here — or lack thereof. The close-out of certain condo complexes over the recent past – such as Insignia and Luma (the only new condominium towers completed in Seattle within the last few years) – has also contributed to the inventory crunch.
These trends are forcing condo buyers to compete fiercely for limited inventory. Units that come onto the market are typically sold quickly, at or near the asking price.
Forecast for the Condo Market in 2021
With inventory tight and demand soaring, condo prices in Seattle will likely continue rising in 2021. Prices will probably rise most in the downtown area, where there is typically a higher level of demand for condominium units.
Despite the ongoing pandemic, housing prices – including condos – have gone up amid strong buyer demand and limited inventory. Overall, home prices have increased 10.9& over the past year and are expected to rise by another 11.1% over the next 12 months. The year 2021 will likely see some major gains in condo and single-home prices.
Get Your Financing Lined Up Early
The 2021 forecast for Seattle’s condo market suggests that conditions will remain tight over the coming months. Limited supply and strong demand will likely continue to drive prices north. Properties will sell quickly (faster than the historical average) for much of 2021.
As a result of these conditions, Seattle condo buyers would be wise to arrange their financing before entering the market. For cash buyers, this means having the money in the bank with documents to verify it.
Condo buyers who use mortgage loans can get a head start by getting pre-approved for a loan. In a competitive real estate market like Seattle, a pre-approval letter can make the difference between a purchase offer being accepted or rejected.
Have Questions About Mortgages?
If you have any questions about home loans in Seattle or anywhere else in Washington State, Sammamish Mortgage can help. We are a family-owned and operated Mortgage Company who has been proudly serving the Pacific Northwest since 1992. We currently lend in all of Washington, Oregon, Idaho, and Colorado. With their wide offerings in mortgage programs and flexible qualification criteria. Get in touch with Sammamish Mortgage today!