Seattle-Area Home Prices Show Strength in February

Market Activity Overview

In February, the Seattle-area housing market continued to exhibit robust activity, driven by increasing pending and closed sales, along with rising median home prices. These trends were observed across most counties in the region, indicating a strong start to the spring season.

Factors Influencing the Market

The uptick in market activity can be partly attributed to seasonal trends, as the real estate market typically gains momentum after the beginning of the year. Additionally, a slight decline in mortgage rates earlier in the year attracted buyers who were hopeful for further rate decreases.

Median Price Movements

Median home prices experienced notable increases in several counties. King County saw an 8% uptick, while Pierce and Snohomish counties witnessed more modest 2%-3% increases. In contrast, Kitsap County recorded a 5.5% dip in median home prices.

Year-over-Year Price Comparisons

Compared to the previous year, median home prices in February showed significant year-over-year increases. King County saw a 14% jump, with the median home price reaching $914,500. Snohomish County’s median home price increased by 9% to approximately $751,000, while Pierce County and Kitsap County recorded 4% increases to $550,000 and $519,500, respectively.

Regional Price Variances

In King County, the southwestern area, including Burien and Federal Way, experienced the largest year-over-year jump in single-family home prices, with a 16% increase to a median price of $678,500. Seattle’s median single-family home price rose by 12% to about $927,000.

Condo Market Trends

Condo prices also showed an upward trend. The median price for Seattle condos increased by 8%, reaching $558,000, while the Eastside saw a substantial 23% increase, with the median condo price at $665,000.

Impact of COVID-19 on Condo Demand

The resurgence of interest in condos can be attributed to a better understanding of COVID-19 transmission and the affordability of condos compared to single-family homes.

Market Dynamics and Seller Behavior

Despite an increase in new listings in February, inventory levels remain below the peak of the recent housing frenzy. Many homeowners are holding onto their properties, possibly due to the favorable interest rates secured in recent years.

Buyer Demand and Bidding Wars

The limited supply of homes has led to a high level of buyer demand, resulting in bidding wars and offers above asking prices. Buyers are making higher down payments and are less likely to include contingencies in their offers.

Market Outlook

While the market is showing signs of strength, ongoing supply constraints and fluctuating mortgage rates may impact future market dynamics. However, with continued buyer demand and limited inventory, the Seattle-area housing market is expected to remain competitive in the coming months.