Seattle Real Estate Market Update | March 2023

February 2023 Closed Home Sales Showed Some Signs of Life

The NWMLS just released their monthly sales stats and closings in Seattle picked up in February, partially spurred by a drop in interest rates in January. The median price of detached homes closed in Seattle increased slightly from $810K in January 2022 to $815K in February 2023. Keep in mind that February closing data reflects January market activity which is now almost two months old.

February's Home Prices have dropped 18% from their April/May 2022 Peak

You can expect some very negative headlines from news outlets covering Seattle real estate in the next 3 months as they report year-over-year price comparisons against peak March, April and May 2022 prices. These reports may or may not reflect what's actually happening in the market at the time they are released. Details and charts on Seattle's median home prices can be found below.

30 Year Fixed Rates near 7% (again)

The average 30 Year Fixed rate is 6.99% as of March 7, 2023, up substantially from a February low of 5.99% according to  Mortgage News Daily. Rates increasing from 6% to 7% raises monthly payments for most buyers by approximately the same amount a 10% home price increase does.

Buyer Activity has Slowed in the Last 3 Weeks

Informal activity surveys from local real estate brokers suggest late February and early March buyer activity has slowed since January, hurt by rates rising close to 7% again and overall low inventory of homes to go tour.

Seattle Inventory is Still Low, Frustrating Buyers

The total inventory of detached homes for sale in Seattle is 584 as of March 7, 2023 which is in-line with 2016 through 2022 numbers. For comparison, during the last major housing market decline, the number of active detached homes for sale in Seattle was over 5 times higher than it is now, hitting 3,200 active for sale several times between 2008 and 2011.

Softer prices have helped bring buyers back to the market but interest rates in the high 6s and limited homes to choose from have left many buyers frustrated and on the sideline or, finding themselves in competition with other buyers when they do pursue a home.

Bedroom and Bathroom Diagrams Added to Listings on WickundRE.com

Seeing which floor bedrooms and bathrooms are on is one of the most critical things our clients evaluate when looking at a home. To make it easier to visualize this information, we added a diagram to every listing on our site which shows the floor each bedroom and bathroom is on. This diagram is available on the listing detail page and on the tooltip listing preview on the map. We're always looking for ways to improve our site, please email me with any suggestions!

Evergreen Point Medina Waterfront Home Sells for $20,000,000

This 4,310 sqft house with 115' of waterfront closed for $20,000,000 on Feb 10, 2023.

February Single Family Home Prices in Seattle Down 18% from May 2023 Peak

New sales information compiled from NWMLS data shows the median price of single family detached homes in Seattle in February 2023 was $815,000. The median price is down 9% from February 2023 and down 18% from the all-time high of $996,000 reached in April and May of 2023. Median prices ended February 2023 in-line with December 2021 prices.

February Condo Unit Sales Volume Down 45%, Prices Down just 3% from a Year Ago

The number of condo units closed in Seattle in February 2023 was 149, down 45% from February 2023 unit volume of 269. The median price of condos in Seattle in February 2023 fared better, coming in at $523,000, down 3% from February 2022 median of $540,000. image.png (Condos Closed Sales, Seattle Jan-2020 through Feb 2023)