Washington State Housing Forecast for 2022-2023

Published:
May 20, 2019
Last updated:
September 30, 2022
In This Article

Home prices are up from last year in Washington State and now sit at $616,529 as of September, 2022. Prices increased throughout the year, and they’re expected to continue in 2023. Low inventory is a big driver of rising home prices, which continues to be very tight in many housing centers across the state, especially in King and Pierce Counties. 

With mortgage interest rates having more than doubled since the start of 2022, and expected to rise still further, affordability is going to get worse for the average homeowner heading into 2023.. As such, buyers may want to get into the Washington real estate market now before home prices and interest rates continue to increase even more.

Median Prices Up

The median sales price for a typical house in Washington State as of September 2022 is $616,529, up15.1% from last year.

Closed Sales Are Up

The number of closed sales increased in the Pacific Northwest by 14% from September 2021 to September 2022.

King and Pierce Counties to Remain the State’s Hottest

Real estate experts say low inventory will mean the hottest housing market in years in King and Pierce Counties. Home prices are up 13.8% and 12.6% in King County and Pierce County, respectively.

Days on the Market

According to RedFin, listings spend an average of 16 days on the market before selling.

30-Year Fixed-Rate Mortgage Rate

Current mortgage rates in WA are currently 5.91% for conforming 30-year mortgages, 5.06% for 15-year mortgages, and 5.13% for 5/1 ARMs. For jumbo loans, the numbers in the state are 5.60% for 30-year mortgages, 5.08% for 15-year mortgages, and 5.01% for 5/1 ARMs.

Expect Slowing Sales in 2023

Homes on the market in Washington State are forecasted to sell a little slower in 2023, as home prices and interest rates will continue to increase.

Seattle Metro Area See Major Price Gains

According to Zillow, home values in the Seattle-Tacoma-Bellevue metro area increased to:

  • Seattle $960,925
  • Tacoma $514,336
  • Bellevue $1,574,090

Tight Housing Supply in Seattle

Seattle continues to see a shortage of housing inventory, with only a 0.97-month supply of homes available right now.

Homes in Seattle Sell Quickly

In Seattle, homes sell 7 days after hitting the market, down from 14 days last year.

Increase in Homes Sold in Seattle

Seattle saw 900 home sales in August 2022, down from 1300 last year.

Today’s Mortgage Rates

Need a Home Loan in Washington State?

If you have questions about mortgages in Washington State or are ready to apply for one, we’re happy to help. Sammamish Mortgage is a mortgage firm in Bellevue, Washington, serving the entire state, as well as Colorado, Oregon, and Idaho since 1992. Our experts will walk you through our mortgage programs to see which one is best for you. Contact us today with any questions you have about home loans in Washington State.

Get an Instant Mortgage Rate Quote Today

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