What Are Seattle Condo Prices Like in 2022?

Published:
June 15, 2022
Last updated:
June 15, 2022
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Thinking about buying a condo in Seattle? Better check those Seattle Condo prices first – the market in Seattle is still red hot for residential properties.

Knowing Seattle condo prices in 2022 can help you decide if it’s the right time to buy a condo in the city or to look further afield. Here’s what you need to know about buying a condo in Seattle this year, from what you can expect to pay to what your financing challenges will be.

Seattle Condo Prices in 2022

There are some advantages when it comes to looking at condos in Seattle in the current sellers’ real estate market. Condo inventory is slightly better than single residential homes, and condos are staying on the market a little longer as well. Condos are selling at or only a little over asking price, meaning there aren’t massive bidding wars going on.

Citywide, Seattle’s condo median sales price rose 3% year-over-year in March, hitting $510,025, somewhat down compared to February of 2022. The number of Seattle condos for sale improved 21.3% to 290 units, which is a big jump over February but still 48.6% fewer listings than in 2021.

Queen Anne and West Seattle, Ballard, and Capitol Hill are all down 54% to 64%, but other neighborhoods have enough inventory to keep the overall supply rate even at 0.8 months. Again, this is extremely tight, but still better than the general housing market.

Construction costs and strict zoning and bylaws keep new build growth in Seattle to a minimum, and it’s been a sellers market almost unceasingly for the past decade. Condo owners tand to hang on to their investments seeing as how the appreciation rate has been extremely favorable.

Higher prices and mortgage interest rates are expected to deter some buyers from the market, which can mean it’s easier to find a Seattle condo later this year. With the sale price just over half what you’d pay for a single family residential home, a condo for family living may be a more palatable option.

Today’s Seattle Mortgage Rates

Getting Financed for a Condo in Seattle

Wondering about the differences between buying a house or a condominium? Condo loans usually require a minimum of 10% for the down payment. This is much higher than the minimum of 3% down payment for single family residential homes with certain loan types.

That said, you might be able to buy a condo more cheaply, meaning the 10% down won’t be as steep as if you were buying a detached single family home. This is definitely something to consider.

You’ll also probably pay a higher Interest rate on a condo mortgage than you’d be offered on a single family home. The better your credit, and the higher your down payment, the better your interest rate will likely be.

Homeowners association (HOA) dues will be counted as part of your monthly mortgage payment. For condo purchases, this is always included in your debt-to-income (DTI) ratio calculations, which can affect the maximum amount a lender will give you to buy a condo.

Important: FHA and VA Loans Require a Warrantable Condo

A condo is only eligible for financing backed by a government entity like the Federal Housing Association (FHA) or the Department of Veterans Affairs (VA) if it is warrantable. Loans that will be purchased by Fannie Mae or Freddie Mac also require that buyers select condos that meet specifications that have been laid out by one or both of these organizations.

You can easily find and use this list of warrantable condos published by The Department of Housing and Urban Development (HUD) if you are looking into an FHA condo loan. For Fannie and Freddie destoned loans, there is no published list, but you can tell your real estate agent to restrict condo showings to warrantable units only so you don’t waste your time on an unwarrantable condo.

What makes a condo warrantable?

For a condo to be warrantable, no more than 20% to 25% of the total number of units in the project can be owned by any one person or entity (unless it’s only a 2-4 unit property, in which case this can be waived.)

Warrantable condos include detached units that don’t share walls with other units but remain part of a condo development. Owner occupancy must apply to at least 50% of all units. A condo cannot be owned by more than one person per unit (no timeshares) and it can’t be included in a houseboat project. If the condo development has any commercial space, it can’t be more than 35% of the building’s square footage.

A reserve account must be set up to hold a minimum of 10% of the annual budget for project protection. Units in arrears 60 days or more with association dues can’t add up to 15% or more of the total, and there can’t be any legal issues with the condo or HOA at the time of purchase.

Now you know everything there is to be known about current Seattle condo prices, home financing options and challenges, and where to get started with your condo search. You’re ready to apply for a condo mortgage and begin your journey to home ownership in a high rise.

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Why Choose Sammamish Mortgage?

At Sammamish, we believe educating homeowners is the best path forward to financial success. That’s why we put so much effort into our blog articles, to help create a resource for homeowners and homebuyers. Whether you’re looking for a condo mortgage or planning on becoming a real estate investment buyer, we can help.

Sammamish Mortgage has been in business since 1992, and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon and Washington.

Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.

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