News Update : Seattle-Area Home Prices Fell In 2023 After Years Of Growth

Victor K • Jan 23, 2024

2023 saw a dip in the housing market in Seattle, something that has not been seen over the last few decades. This was mostly due to the impact of higher mortgage rates, affecting both buyers and sellers alike. The extreme double-digit price spikes of the early pandemic years had given way to a more modest correction. However, there was a cooling trend observed in 2023 but it varies across the state of Washington. However, it declined in the areas near and around Seattle. King County, Snohomish County, and Pierce County experienced year-over-year drops in median home prices, marking the first time since 2011 that all three counties saw declines. Kitsap County was an outlier, maintaining a flat median price from 2022 to 2023.

 

Even with a small cool-off period, the affordability of house buying remained a challenge as median-income households could not afford the mortgage on average home prices. Only three out of forty-nine Washington counties were deemed possible for house purchase keeping a 20% down payment in the picture along with limiting mortgage payments to 25% of the household income (gross).

 

However, as per research and analysis carried out by a team at United Seattle, the price dips were not enough to cater to the rapid price increase seen in the pandemic era. For example, King County saw a 30% increase in home prices as compared to 2019. The sudden rise of work from home made the property value of outlying areas of Seattle see a sharp increase as well such as Snohomish County (48%) and Pierce County (45%) as compared to 2019. 

A  new trend was seen as buyers shifted their focus to affordable condos and renting spaces. While single-family home prices dropped in King County, the median condo price increased by 2% in 2023. Seattle experienced a 4% increase in median condo prices, reaching $558,000, while the Eastside saw a 1% dip to $617,000. Buyers who could have afforded single-family homes in 2020 or 2021 found condos to be a more accessible option.

 

The reduction of the market was seen through the lesser amount of house-selling deals in Seattle due to higher interest rates. Year-on-year condo sales dropped in King County (24%), Snohomish County (26%), Pierce County (27%), and Kitsap County (22%). Furthermore, rising mortgage rates (around 8% in October 2023) made buyers change their minds. This was reflected in a lesser number of listings which contributed to the shortage of available homes, preventing prices from falling further.

New construction in 2024 could change the market scenario reducing the shortage on the market. However, increased interest rates and construction costs across the state might have yet another say in this. In 2023, homebuyers in King County experienced relief with fewer bidding wars. Single-family homes sold for just half a percent above list prices, a departure from the competitive 2021 and 2022 environment. Listings also took five to six weeks to sell, offering buyers more decision time compared to the rapid sales of less than two weeks in 2021.

 

The housing market has started showing signs of improvement in the early part of 2024 as buyers and sellers walk into a more stable market. This will also give a little more financial room for buyers to include home inspections and renovations in their buying plans. Even with the current challenges, the Seattle housing market seems to be moving in a positive direction calling out for cold buyers who were waiting for the right time to move from rental to permanent housing situation.

By Victor K 12 Mar, 2024
Seattle is set to grow at an alarming pace in terms of population and job opportunities. Therefore, keeping this in hindsight, Mayor Harrell is lobbying hard to accommodate the anticipated growth through an increase in housing density. This not only includes medium and small-income households but also more corner stores making it one of the most significant overhauls of the city building code in the last three decades. The proposal includes the establishment of 24 new "neighborhood centers" within 800 feet of transit and commercial areas. These centers would allow for the construction of apartments up to six stories high, potentially transforming neighborhoods like Maple Leaf. As per the projected plan, a staggering 100, 000 homes will be built in the next twenty years. Moreover, the major share of this (around 60%) is in King's County. This number has already been thrown around but never made up with the actual constriction. However, the new plan indoctrinates fast-paced construction to meet the growing population needs of Seattle.
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By Victor K 10 Mar, 2024
Any commercial subcontractor Seattle in the Settle construction industry will tell you that AI has and will shift the ground soon. The Seattle construction industry is a huge money-making machine and coupled with AI will become even more efficient and huge at the same time. With this enormous prospect, construction management companies are finally moving towards smarter construction. Here are some of the most common notions about AI and the Seattle construction industry, that are true. AI And Construction Management AI is a game changer for construction subcontracting services in Seattle as it is revolutionizing every part of the industry as per experts at United Seattle . These technologies enable commercial project management Seattle to focus on other ventures whereas smart machining takes care of site monitoring for hazards, design optimization, timeline management and early warning of problems coming up. Automation of repetitive tasks is another aspect of AI that any construction management subcontractor thrives upon reducing the use of allocated resources and superior time management.
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