Seattle and the surrounding King County area continued steady population growth. According to the U.S. Census, Seattle’s population has grown by 27.58% in the last decade, the 14th largest population increase in the nation. This steadily increasing population and many other factors, such as interest rates, mortgage rates, Covid-19, and more, can make the Seattle real estate market fluctuate from month to month or even day today. For this reason, many prospective buyers and sellers are looking for as much information as they can about housing market trends to make the best decisions possible for their circumstances.
King County Median Home Prices
The population of King County is only expected to increase. The U.S. Census estimates that Seattle and King County will grow by another 1.7 million people by 2040. People are drawn to the Seattle area for work opportunities. Technology companies like Amazon, Microsoft, and Nintendo increase their workforces, pulling in workers from across the nation. All of these new residents are and will be searching for housing. Despite the county’s efforts to meet the housing demand, the supply of housing will inevitably decrease, which will lead to higher costs.
Inventory levels of homes for sale in King County remain lower than average in 2022, resulting in price growth. The strong job markets in the area continue to attract young professionals from Salt Lake City, North Carolina, San Jose, and multiple other tech hubs in the United States.
The Largest City in Washington: A Competitive Market
The Seattle real estate market follows the simple tenets of supply and demand. The rapid increase of people is causing a low supply of homes and, due to higher demand, an increase in average home prices. A competitive market generally favors sellers because their property is in high demand and can be sold at a higher price. As a buyer, this does not mean purchasing a home is impossible, but it will be more expensive due to the nature of a competitive real estate market.
Buyer Demand in Seattle
However, the Seattle real estate market is currently in a seasonal slowdown in the short term. This does not mean the market is drastically changing or is swinging in favor of buyers, but rather, due to the increase in prices and increase in current interest rates, fewer buyers are seeking to purchase larger homes. The rise in prices has reduced the number of people who could feasibly afford a home, so fewer people are searching. Additionally, the Omicron variant of Covid-19 has pushed back the date of many companies’ plans to return to in-person work for many tech jobs, which has made people understandably wary of making any real estate changes.
Median Sale Price in Seattle
So, what does all of this mean for 2022? Despite the current seasonal slowdown, housing prices are projected to increase in price. The competitive market will remain favorable for buyers because the supply of single-family homes is still low.
“King County still faces a housing shortage of over 300,000 units. We still have not nearly enough supply for the strong demand in our growing city.”
Eddie Change, a senior global real estate advisor
Nonetheless, other experts believe that buyers will continue to buy new homes as 2022 progresses because the supply problem is predicted only to worsen. Interest rates will be potentially higher than they even are today.
Single-Family Homes in Seattle
Based on data compiled by the NWMLS,
- median price of a single-family home in Seattle is $839,000
- the median price of a single-family home in King County is $810,000
- median price of a single-family home in Snohomish County is $700,000
- the median price of a single-family home in Pierce County is $520,000
In terms of price increase from 2021 to 2022:
- Seattle: 4.9 percent
- King County: 9.5 percent
- Snohomish County: 22.1 percent
- Pierce County: 18.5 percent
Single-family homes, in particular, are in demand as workers from San Francisco and Silicon Valley look to relocate their families for work. Generally, these tech workers have the financial means to afford these increased prices and are willing to enter bidding competitions to drive up prices further.
Overall in 2022: Low Housing Inventories and Higher Mortgage Interest Rates
The market will remain competitive, despite the current seasonal slowdown. Sellers will still have the price advantage due to the low supply of single-family homes. However, the supply shortage is only forecasted to continue, so many buyers will actively search for a home to buy.
