Seattle is notorious for having one of America’s hottest housing markets. Between 2016 and 2018, the city topped the country’s home price increases chart for 21 consecutive months. While the market has cooled down since then, the median home price in Seattle remains considerably higher than most other American cities. Currently, Seattle’s median home price seats at $749,000, according to RedFin. Home values rise by more than 10.3% every year, and if the projections are anything to go by, they will continue to rise for many years to come.
If you’re thinking about buying a home in Seattle, WA, an expert realtor with a thorough knowledge of the market is an invaluable resource. You will also need mortgage brokers that can offer you a variety of financing options to choose from. That’s where Seattle’s Mortgage Broker can come in. Our company offers potential homeowners different types of loans to choose from, and we can help you close the deal within a week or less.
Why are Seattle home prices so high?
By now, you already know that the best real estate for sale in Seattle will not come cheap. Still, people often wonder why the price of homes in Seattle is significantly higher than the country’s average. Below are a few possible explanations for the sky-high real estate prices in Seattle:
Not enough homes for sale
The law of demand and supply predicts an increase in price if the supply of any commodity is dwindling. And that’s easily observable in the Seattle real estate market. The number of homes available for sale has progressively decreased over the years, reaching an all-time low in 2018.
Many people want to buy homes in Seattle
The low supply of homes accounts for only half of the equation. On the other side, there is a rising demand that further jacks up home prices in the Seattle real estate market. Since the turn of the century, the city has experienced marginal increases in population and high-paying employment opportunities. As a result, more people with more purchasing power are competing for the few homes available.
Record competition for homes
In the not so distant past, there appeared to be enough homes in the market for everyone. However, the story is no longer the same. A city that used to have one home for sale for every 230 people can no longer offer more than one home for 1060 people. This creates a bidding war that sparks an increase in real estate prices. Consequently, the losers of a bidding war become more aggressive with their next opportunity, even if the home is not as gorgeous as the one they previously lost.
Are you thinking about buying a home in Seattle, WA? Do not hesitate to get in touch with us at Seattle’s Mortgage Broker. We take pride in being one of the best real estate companies in Seattle, and we offer diverse financing options for potential homeowners. Call Seattle's Mortgage Broker today: 206-251-0818.
Median Home Price Seattle