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Condos provide buyers with a more affordable housing option while offering certain convenience that traditional single-family homes might not. The question is, what is the Seattle condo market forecasted to be like in 2024?
We’re heading into 2024, and that means a lot of Seattle condo buyers are starting to come out of the woodworks following the holidays. And many are wondering the same thing: What will the Seattle condo market be like in 2024? Are prices expected to continue rising? And what about inventory?
In order to create a forecast for the Seattle condo market in 2024, we have to look at what’s happening right now. So let’s start with some current trends.
Seattle’s condo market remained tight in January 2024 due to tight inventory. This supply-and-demand imbalance is pushing prices north.
Year-over-year sales trends in the Seattle condo market have been relatively the same as they were the same time last year, along with a high number of pending transactions.
Condo inventory is not expected to get much better in Seattle and surrounding areas. Right now, there is just a 3.8-month supply of condos. Four to six months of supply is considered a balanced market, while anything under three months is considered a seller’s market. Clearly, we are still in seller’s market territory for condos.
That said, there are a few new high-rise development projects in the works for Seattle and nearby Bellevue, which could help to beef up inventory at some point and relieve the situation slightly. However, demand continues, so it will still be a competitive market in Seattle in the coming months.
But most of Seattle is zoned for low-rise complexes, which puts a cap on the number of high-rise buildings that can go up in the city, thereby limiting the number of condo towers that can be built. In turn, this keeps Seattle rental rates pretty high.
In Seattle, the median price for a condo is roughly $492,500, which is 2% higher than what it was year-over-year. Condos that are considered “hot” are selling really quickly.
Inventory is the big story here — or lack thereof. The close-out of certain condo complexes over the recent past – such as Insignia and Luma (the only new condominium towers completed in Seattle within the last few years) – has also contributed to the inventory crunch.
Related: Low inventory lifting prices in housing markets
These trends are forcing condo buyers to compete fiercely for limited inventory. Units that come onto the market are typically sold quickly, at or near the asking price.
With inventory tight and demand soaring, condo prices in Seattle will likely continue rising in 2024. Prices will probably rise most in the downtown area, where there is typically a higher level of demand for condominium units.
Overall, home prices have dipped 1.3% in Seattle over the past year. However, the year 2024 will likely see some gains in condo and single-home prices.
Given the high prices for homes, condos remain the only price option for many buyers. This fact alone could drive up condo prices due to strong demand.
Condo inventory has declined significantly over the past year, which means we will be starting 2024 off with a dramatically reduced condo supply.
The 2024 forecast for Seattle’s condo market suggests that conditions will remain tight over the coming months. Limited supply and strong demand will likely continue to drive prices north. Properties will sell quickly for much of 2024.
As a result of these conditions, Seattle condo buyers would be wise to arrange their financing before entering the market. For cash buyers, this means having the money in the bank with documents to verify it.
Condo buyers who use mortgage loans can get a head start by getting pre-approved for a loan. In a competitive real estate market like Seattle, a pre-approval letter can make the difference between a purchase offer being accepted or rejected.
A new flood of inventory could have a cooling effect on home prices across the metro area, and especially within Seattle and Bellevue.
For the last few years, this region has experienced a supply-and-demand imbalance that has led to skyrocketing home values. This in turn has created affordability issues for a large portion of the population.
Population growth is a contributing factor in all of this. From 2011 to 2016, the Seattle metro area’s population grew by 8.5%. That was more than double the national growth rate of 3.7% during that same period of time.
It stands to reason that a significant increase in housing supply across Seattle and Bellevue would tip the scales, bringing annual home-price appreciation down closer to historical norms. And that would be a positive development, from an economic standpoint.
But as things stand right now, we’re seeing tight inventory, which is contributing to continued increases in condo prices in Seattle.
If you have any questions about home loans in Seattle or anywhere else in Washington State, Sammamish Mortgage can help. We are a family-owned and operated Mortgage Company who has been proudly serving the Pacific Northwest since 1992. We currently lend in all of Washington, Oregon, Idaho, and Colorado. With their wide offerings in mortgage programs and flexible qualification criteria. Get in touch with Sammamish Mortgage today!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.