SEATTLE — According to Redfin, Seattle's housing market is cooling faster than any other city in the U.S.
“I don't think Seattle is that different," said Dylan Fairweather, Redfin's chief economist. "It is more expensive than a typical market, so that makes it more susceptible to these swings in mortgage rates."
The company attributes the cooldown to the high mortgage rates, inflation and economic uncertainty.
"Those high mortgage rates really do add up to a lot of dollars in a market as expensive as Seattle," said Fairweather.
We're now seeing the results.
According to the Northwest Multiple Listing Service, a non-profit that tracks Washington real estate, houses are on the market longer than they were in 2021. In September 2022, the housing inventory was about two months.
“In April, we had about 10 days, at the most 14 days of inventory,” said Ginger York, with Marketplace Sotheby's International Realty. “So, a very big difference between now and the peak of the market.”
York said homes are also decreasing their listing prices, allowing buyers more opportunities to negotiate.
“Back in April, they had two to three homes to choose from, now they have 10 to 20 homes to choose from, and that might allow them to get into their favorite neighborhoods," explained York.
While houses are decreasing in price, the median price for a home is still higher than last year in Seattle. In September 2021, the median sales price of a home in Seattle was $765,000. In September 2022, it was $815,000.
"Our markets of King, Pierce and Snohomish counties are still up 5.1% as of September, and that's over 2021, so sellers still have gains," said York.
Interest rates are now at 7%, which is cautioning some from diving into this market. With so many unknowns, KING 5 asked Fairweather about future predictions.
"For the most part, we're expecting home prices to be flat, and what that means is that it's as likely that home prices go up as they go down. Both scenarios are likely," said Fairweather.