Seattle’s fall housing market heats up: Here's why

Mortgage rates fall to lowest level this year

Mortgage rates are at the lowest level this year as inventory hits a post-pandemic high.

SEATTLE - Lower mortgage rates and increased housing inventory are providing Seattle homebuyers with new opportunities, making the fall housing market more competitive than usual, according to Zillow's latest market report released Thursday.

Mortgage payments have decreased nationwide, with the typical monthly payment on a Seattle home dropping 3.4% in August. This shift has reduced payments by more than $100 per month compared to their peak in May, opening the door for buyers who had previously been priced out.

"Late summer may be an opportunity for buyers who have been waiting in the wings for a monthly mortgage payment they can qualify for," said Skylar Olsen, Zillow’s chief economist.

The median home value in Seattle stands at $740,004, with the typical mortgage payment around $3,718. This reduction has made home buying roughly affordable again, meaning monthly payments generally cost less than one-third of median household income.

Inventory in Seattle has increased significantly, although it still remains below pre-pandemic levels. About 27.5% of listings experienced price cuts in August, which is high for this time of year but marks a decline from the trend seen in recent months. Despite these cuts, more than one-third of homes in Seattle sold for over the asking price in July, reflecting continued competition among buyers for desirable properties.

Homes in Seattle are spending an average of 14 days on the market before going pending, a slight increase from July but still faster than the pre-pandemic norm, the report highlighted. The overall inventory has also grown since September 2020, with nearly 1.18 million homes available nationwide.

"Buyers have more options to choose from for two reasons," said Olsen. "For one, it's easier to qualify for more of the homes on the market now that mortgage rates are a bit lower. Beyond that, more inventory is becoming available — enough to improve buyer negotiating power. Attractive properties in hot markets are still selling quickly, but some metros — or neighborhoods within them — have flipped further in favor of buyers."

Featured

Seattle among top U.S. cities for fastest home sales, study shows

article

Seattle among top U.S. cities for fastest home sales, study shows

The fast-paced housing environment shows no signs of slowing down for these two Washington state cities.

While the market has been traditionally dominated by sellers, Seattle is showing signs of shifting towards a more balanced state, providing buyers with increased leverage. Lower mortgage rates are expected to sustain this trend into the fall, delaying the typical seasonal cooldown.

With these changes, buyers and sellers in Seattle are adjusting their strategies. Buyers are gaining more time to decide and negotiate, while sellers may need to be more competitive with pricing and marketing strategies to attract offers quickly.

For those looking to buy or sell in Seattle, the evolving market dynamics suggest that now might be a strategic time to act, as both sides adjust to a new balance of power.