Summary: What will the real estate market in Seattle be like in the next few months in 2020? Has inventory increased, or will there continue to be a shortage in housing supply? We will go over these questions throughout this article.
There are so many questions that Seattle homebuyers have about the housing market in the city. And one of those questions is, how much inventory will they have to choose from in 2020? After all, the housing supply plays a key role in the temperature of the market and what the average price of homes in Seattle are. There are some new trends and developments to report.
Seattle Housing Market Has Less Inventory in 2020
Recent forecasts suggested that home prices will keep climbing in Seattle throughout 2020, though at a slower pace than in previous years. That was true up until just last week, when Zillow predicted a healthy increase in home prices over the next 12 months in Seattle as the market started heating up over the past few months.
But the coronavirus pandemic is having a big impact on home price appreciation in Seattle, and the rest of the state and country. Zillow now predicts that home prices will dip 0.1% over the next 12 months.
A big factor in the Seattle housing market right now has to do with inventory. For the past few years, the city has experienced a severe shortage of homes for sale. That’s partly why prices have risen so fast. But despite a slight rise in inventory growth within the Seattle-area real estate market recently – which we reported on before – inventory still continues to be very tight, and will likely continue that trend into the near future.
Health Pandemic Having an Impact on Inventory in Seattle
The current health crisis plaguing the nation and the world as a whole is having an effect on housing markets across Washington State, including Seattle.
According to Realtor.com, national housing inventory dropped by 15.7% year-over-year, and inventory in larger markets – like Seattle – declined by 17.1%. The number of new listings also declined, and price increases slowed over the last two weeks in March.
As far as the Seattle Metro Area is concerned, active listing counts dropped 27.1% year-over-year, making it one of the top 10 metros areas with biggest decreases in inventory.
The news is much more dire in the surrounding King County. According to the Northwest MLS, inventory in King County is down a whopping 40.7% from the same time last year.
There is barely a 1-month supply of homes available for sale in King County, leaving buyers with little to choose from.
It’s possible that homeowners who were planning to sell soon are deciding to hold off until after the health crisis dies down. Based on this notion, there are fewer homes being listed on the market, and therefore fewer homes for buyers in Seattle to choose from.
This means that home buyers today do not have as many properties to choose from. This shortage in inventory has made Seattle a very competitive housing market right now, according to Redfin. Most homes are receiving multiple offers and are selling for about 1% over the asking price, on average. Homes are going pending in an average of 8 days, while hot properties are selling in as little as 4 days ate sale prices 4% over the listing price.
But it will be interesting to see what the housing market does in reaction to the current pandemic and how it will be when it subsides. In the meantime, home prices are still high in Seattle at a current average home price of $767,900, though forecasts suggests that prices will not stray too far over the coming months.
Related: Seattle vs. Portland home prices
Disclaimer: This article contains data and forecasts provided by third parties outside of our company. Housing and economic forecasts should be viewed as an educated guess, not a certainty. We have gathered them here as a service to our blog readers.
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