Washington State Housing Forecast for 2023

Published:
May 20, 2019
Last updated:
January 27, 2023
In This Article

Home prices are up from last year in Washington State and now sit at $608,350 as of January 2023. Prices increased throughout the year, and they’re expected to continue in 2023. Low inventory is a big driver of rising home prices, which continue 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.

Washington State Housing Forecast for 2023

Median Prices Up

The median sales price for a typical house in Washington State as of January 2023 is $608,350 up 6.6% from last year.

Closed Sales Are Up

The number of closed sales increased in the Pacific Northwest by 14% from January 2022 to January  2023.

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 10.7% and 5.1% 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 5.93% for conforming 30-year mortgages, 4.87% for 15-year mortgages, and 5.13% for 5/1 ARMs. For jumbo loans, the numbers in the state are 6.04% for 30-year mortgages, 5.65% for 15-year mortgages, and 5.96% for 5/1 ARMs.

View WA State Mortgage Rates

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 $929,964
  • Tacoma $497,619
  • Bellevue $1,539,597

Tight Housing Supply in Seattle

Seattle continues to see a shortage of housing inventory, with only a 1.78-month supply of homes available right now.

Homes in Seattle Sell Quickly

In Seattle, homes sell 39 days after hitting the market, up from 18 days last year.

Increase in Homes Sold in Seattle

Seattle saw 481 home sales in December 2022, down from last year’s 1,153

Get an Instant Mortgage Rate Quote Today

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.

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