Seattle saw the nation's 3rd-largest spike in home prices in August
SEATTLE - The Seattle housing market continues to experience strong price growth, with home prices rising 8.5% year over year in Aug. 2024, according to the latest data from RE/MAX and MLS reports.
This surge places Seattle third in the nation for price increases, with the median sales price reaching $745,000, up from $686,500 in Aug. 2023.
The surge in home prices places Seattle third in the nation in August, with the median sales price reaching $745,000, up from $686,500 in Aug. 2023. (RE/MAX National Housing Report)
Despite the increase in home prices, home sales have slowed. Seattle saw a 2.6% decrease in transactions compared to the same time last year, with 4,189 homes sold in August. This reflects a broader national trend in which the number of home sales fell 3.8% across 49 metropolitan areas.
The rise in prices is partly attributed to the limited supply of homes. Active inventory in Seattle surged by 41.4% year-over-year, with 7,668 homes available in Aug. 2024, up from 5,423 homes in Aug. 2023. The increased inventory provides buyers with more options, but it hasn’t curbed rising home prices due to sustained demand.
John Manning, managing broker of RE/MAX Gateway in Seattle, noted that the lowering mortgage rates have helped keep demand strong despite the traditionally slower late summer months.
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"End-of-summer demand shows no signs of slowing down, especially in the upper markets, with a sustained shortage of available homes and continued buyer demand growth," Manning said. "Mortgage interest rates have been trending downwards, providing support for continued price appreciation. We expect demand to remain strong into the fall, and further reductions in interest rates will likely boost demand further."
Homes in the Seattle-area continue to sell close to the listing price, with a list-to-close price ratio of 99.9%. This is nearly identical to the ratio recorded a year ago, suggesting that buyers are still willing to pay near-asking prices amid limited availability.
However, homes are sitting on the market longer than last year. According to the report, the average time to sell a home in Seattle is now 50 days, four days longer than in Aug. 2023. Nationally, the average number of days on the market has also increased, with homes taking 38 days on average to sell in August.
Seattle's price growth ranks fourth in the U.S., behind only San Francisco, Los Angeles, and San Diego, where the median sales prices have reached or exceeded $940,000. Although the increase in active inventory provides some relief to buyers, the continued price escalation signals that Seattle remains one of the country’s most competitive housing markets.
Key metrics for Aug. 2024 in Seattle
- Median sales price: $745,000 (+8.5% YoY)
- Active inventory: 7,668 homes (+41.4% YoY)
- Home sales: 4,189 (-2.6% YoY)
- Average days on market: 50 days (up 4 days from last year)
- List-to-close price ratio: 99.9%
Looking ahead, experts predict that a further reduction in interest rates could boost buyer demand even more as the Seattle housing market heads into the fall season.