Summary: Seattle’s home prices are some of the highest in Washington State and the country. But they’ve actually dipped over the past year. That said, prices in Seattle are expected to rise into 2020. This article will outline the market in Seattle into the new year.
Seattle is notorious for having some of the highest home prices in the country. With prices in the mid-$700k’s right now, that’s far out of reach for many would-be homebuyers who simply can’t afford those prices.
But despite Seattle’s home prices being as high as they are, they’ve dropped over the past year. This has provided homebuyers with some relief, as housing prices in Washington’s largest city remain some of the highest in the country.
But current homeowners will enjoy the fact that prices in Seattle are expected to increase yet again into 2020, helping to build more equity into their homes. Will this be a short-term “blip,” or a sustained trend? Long-range forecasts for this market suggest that home values across the Seattle metro area will be higher later in 2020 than they are right now.
Seattle Home Prices Dipped Over the Past Year
According to real estate research firm Zillow, home prices in Seattle dipped 2.3% over the past year. Today, the average price for a home in the city is $741,800, which is quite a difference from the peak of $786,000 in May 2018. Despite this dip, prices are expected to increase 4.2% over the next 12 months, which is in line with the statewide pace.
A similar trend is being seen in King County as a whole. Prices in the county have dipped 0.4% over the past year, but are expected to climb 5.1% over the next year. As of the first week of February 2020, the average price for a home in King County is $638,400.
These trends are noteworthy because they suggest a shift in the Seattle real estate market. Home prices in the area have risen steadily, and significantly, for the last few years until mid-2018, when prices began to decline. But after sustained price decreases over the past year-and-a-half, a price increase is certainly a change.
Forecasts Predict Higher House Values in Late 2020
Despite the recent declines, most analysts and economists are predicting that home prices in Seattle will be higher toward the end of 2020 than they are right now. So that’s something to consider, if you’re planning to make a purchase in 2020.
As already stated, home prices are expected to rise quite a bit throughout the upcoming months.
The key takeaway here is that the Seattle real estate market — which has long been cited as one of the hottest markets in the country — may finally be breaking is cooling trend some time soon. This is good news for current homeowners. But it can also be great news for homebuyers who get into the market early in the year before prices start to take off.
And with the current low interest rates that buyers are enjoying these days, mortgage are more affordable than ever. Considering this fact, now may make a great time to buy a home and get into the housing market before prices and interest rates start to increase.
Signs That Housing Inventory Is Increasing
There’s another sign that the local real estate market is changing, and it’s one we’ve covered in the past. After years of suffering from record-low inventory levels, the Seattle area is now seeing an increase in the number of homes for sale. It’s happening across King County as well.
If inventory continues to grow, it could affect home-price appreciation in the Seattle metro area. It would also be welcomed news for buyers who are planning to enter the market in 2020. They might have more properties to choose from, compared to those who purchased in 2018 of 2019.
The city’s population continues to grow as well, creating more housing demand on both the rental and purchase side.
These are interesting times for the Seattle housing scene. We will continue to monitor these and other trends relevant to home buyers and homeowners in the area, and provide ongoing updates.
Need a Home Loan in Seattle?
Will you need mortgage financing to buy a home in Seattle? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest for more than 28 years. We offer a wide variety of mortgage products and programs with flexible qualification criteria. Please contact us today with any financing-related questions you have.