Three Seattle Housing Market Trends to Watch in 2023

Published:
February 10, 2017
Last updated:
December 6, 2022
In This Article

Seattle has traditionally been one of the hottest housing markets in Washington States, and arguably has some of the most expensive homes in the state. This article will look at some of the trends we can expect to see in Seattle in the latter half of 2023.

The Seattle housing market continues to generate headlines. And even though the market may have cooled from mid-2018 to mid-2019, the market has since been very active. That said, the market has cooled somewhat over the second half of 2022.

That’s just one of the Seattle housing market trends we are following in 2023. Here are three important trends that could define the local real estate scene through 2023.

Seattle Housing Market Trends in Late 2023

Home prices in Seattle are still very high relative to other centers in the state and across the nation, and inventory is still tight. Even though home prices have actually dipped since May 2022, the tight inventory continues to keep Seattle in a seller’s market.

The city was recently singled out for having the biggest housing shortage among 150 of the largest cities in America, which means home buyers are competing fiercely for limited inventory. Here are some more notable trends.

1. High Prices Have Reduced Affordability

According to the real estate data company Zillow, the median home price in Seattle sits at $927,525. Prices in the city increased 7.1% over the past 12 months, showing that the market is still relatively healthy.

These high prices are making it difficult for buyers to get into the market because of affordability issues. That said, buyers are still in the market as demand remains high, which is a big reason why prices continue to appreciate quickly.

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2. Continued Home-Price Gains Are Expected During 2023

The local real estate market is expected to remain healthy this year, at least where appreciation is concerned.

According to the latest data from Zillow, the median house price in King County rose 10.8% compared to a year ago in December 2021. That’s a healthy annual increase.

The market in Seattle is just as strong. Despite the ongoing health crisis, there has been an unusually high number of prospective buyers in the Seattle market, all of whom are competing for very little inventory. Many industries have been negatively impacted by the pandemic, but not the real estate market in Seattle.

In fact, the high-paid tech workers in the area who can afford to compete with other homebuyers are helping to keep the fire lit under home prices in Seattle.

3. The Housing Market Will Remain Very Competitive Due to the Inventory Shortage

Recent Seattle housing market trends suggest that the real estate scene will continue to be characterized by limited inventory. The housing supply in Seattle currently sits at about 2-months’ supply, which is far below a balanced market of about 5 to 6 months’ worth of inventory. Local home buyers should still expect a high level of competition in 2023. There’s a lot of demand for housing in Seattle, but supply is limited.

The message to home buyers is clear. Due to current housing market trends in Seattle, including the inventory situation, buyers should be prepared for competition. This means having your financing lined up ahead of time, and studying the market so you can move quickly with a strong offer.

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Need a Loan?

Do you need mortgage financing to buy a home in the Seattle area? We can help. Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington that has been helping buyers across the state since 1992. We offer many different mortgage programs to suit your individual needs. Please contact us with any questions you have, or to receive a rate quote on your next home loan.

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