So what’s in store for 2022? Here’s our Seattle real estate forecast for the upcoming year.
Available inventory in the Seattle area remains drastically low, and is expected to stay around these record-breaking low numbers for most of 2022. This constraint on inventory is a big part of what makes Seattle’s real estate market hot — and the end isn’t exactly in sight.
The addition of housing units would help balance the market, but high costs for construction provide another obstacle for increasing inventory. Seattle’s housing inventory is currently at .43 months, and .27 months in all of King County. The area can only become a buyer’s market if the supply increases to more than five months of inventory, which doesn’t look likely anytime soon because of the drastic imbalance.
Tip: If you’re a homeowner thinking about selling your home, now might be a good time.
Since inventory is so low, homebuyers continue to compete to snag a sale. Even with high prices and the market in the seller’s favor, people are still looking for Seattle homes. Low mortgage interest rates and tech jobs are elements that draw homebuyers to the area.
With Seattle’s inventory at record lows and the levels of new buyers above average, it’s estimated that Seattle should continue to see an unbalanced, hot market at least through the spring and summer of 2022.
[Related: The Eight Best House Hunting Apps]
Home Prices and Values
Although buyers are scrambling to make offers on properties, and homes are selling at a rapid pace, that’s not because they’re cheap. Seattle is a seller’s market, and they’re getting their money’s worth. From the end of 2021 to the first couple of months of 2022, house prices have remained relatively the same. These numbers are still higher than in 2020.
The median sales price for a home in Seattle in December 2021 was $762,475, which is a 3.74% increase year-over-year from $735,000 in December of 2020. Seattle continues to be one of the pricier locations to buy a home, snagging a spot as the ninth most expensive city in the U.S. for real estate in December of 2021.
Home values are increasing as well. Zillow predicts that the already high home values in the Seattle-Tacoma-Bellevue metro area will continue to rise almost 15% over the next 12 months.
One main component of the demand for sales is historically low mortgage rates. Seattle’s interest rates on mortgages hover around 3%. This low rate is a big incentive for homebuyers who want to invest in Seattle real estate. According to The Mortgage Bankers Association, that low percentage shouldn’t budge that much, but is expected to rise closer to 4% by the end of 2022.
If interest rates were to significantly rise, Seattle might see the buying pool decrease and the market start balancing out. However, experts believe interest rates will continue to stay low and in the homebuyers’ favor at least through 2022.
[Related: Your Seattle Down Payment Guide]
The Seattle Housing Market Remains Hot
In conclusion, 2022 looks to be a continuation of 2021 when it comes to Seattle real estate.
The market leans heavily in favor of the seller because of high demand and low inventory. Home prices aren’t drastically increasing but remain some of the highest in the country. The combination of tech jobs and low interest rates continues to move the frenzied market forward.
[Related: Guide to Buying a Home in Seattle]
Contact Seattle Mortgage Planners Today!
If you’re interested in purchasing a home in Seattle, Seattle Mortgage Planners is your top resource. We’ll help you track down the best rates, the right loan options for you, and even inform you about some of the greatest neighborhoods in the Seattle area.
Contact Seattle Mortgage Planners today to get started.