If you are thinking of buying a home in Seattle, you might be wondering how the mortgage rates affect your chances of finding your dream property. Mortgage rates are one of the key factors that influence the demand and supply of homes in any market, and Seattle is no exception.
In general, lower mortgage rates mean lower monthly payments for home buyers, which makes homeownership more affordable and attractive.
However, lower mortgage rates also have some drawbacks for home buyers, especially in a hot market like Seattle. Lower rates increase the demand for homes, as more buyers enter the market or decide to upgrade their current homes. This creates more competition among buyers, who have to bid higher and faster to secure their desired properties.
At the same time, lower rates reduce the supply of homes, as fewer homeowners decide to sell their homes or refinance their mortgages. This creates a shortage of inventory, which drives up the prices and makes the market more favorable for sellers.
According to Redfin, a national real estate brokerage, the Seattle housing market is very competitive, with many homes getting multiple offers, some with waived contingencies. The average homes sell for about 1% above the list price and go pending in around 7 days1.
The median sale price of a home in Seattle was $775K in October 2023, down 3.1% since last year, but still higher than the national median of $377K2. The median sale price per square foot in Seattle was $510, up 3.4% since last year2.
The inventory of homes for sale in Seattle was 1.4 months in October 2023, down 30% since last year, and well below the balanced level of 6 months3. The inventory constraints are expected to worsen as more buyers enter the market while sellers sit on the sidelines and wait for rates to fall even further4.
As a result, the market will likely become more competitive over the next few months, as buyers try to lock in low rates before they rise again, and sellers hold out for higher prices. This means that buyers will have to be prepared to act quickly, make strong offers, and be flexible on terms and conditions.
Some of the most competitive housing markets within Seattle are Northeast Seattle, where the median sale price was $1.1M, up 2.6% since last year, and the average homes go pending in around 6 days1; Northwest Seattle, where the median sale price was $825K, down 2.9% since last year, and the average homes go pending in around 8 days1; and West Seattle, where the median sale price was $775K, down 3.1% since last year, and the average homes go pending in around 8 days1.
If you are looking for a less competitive market, you might want to consider North Seattle, where the median sale price was $690K, down 8.0% since last year, and the average homes go pending in around 7 days1; or Southeast Seattle, where the median sale price was $600K, down 4.8% since last year, and the average homes go pending in around 10 days1.
Of course, these are just averages, and the market conditions may vary depending on the neighborhood, the type and condition of the home, and the price range. To get a more accurate picture of your local neighborhood market, message me and I’ll provide you with the latest data and trends, and help you navigate the complex and competitive process of buying a home.