Real Estate Report

Where Did Home Prices Fall the Most in Seattle Last Month?

Housing prices are softening throughout the region, but don't call it a real estate crash just yet.

By Seattle Met Staff September 13, 2022

The downtown core has yet to recover from the pandemic-induced flight to the suburbs.

What a difference a few months can make. Back in 2021, we marveled at the unrelenting competitiveness of the local real estate market. Now, housing prices aren't only slowing in year-over-year growth, they're actually falling in some neighborhoods, according to the latest data from the Northwest Multiple Listing Service. (Rents, we're sorry to say, are still rising.)

"The market is simply reverting to its long-term average as it moves away from the artificial conditions caused by the pandemic," explains Windermere's chief economist Matthew Gardner.

What that means is the real estate market isn't exactly in a free fall, but it's certainly normalizing. Here's where prices rose and fell the most last month.

Rising

3. North Seattle

Back in June, traditionally a brisk month for the real estate market, this northeast quadrant of Seattle saw glimmers of 2021's bonkers numbers: a year-over-year median sale price growth of 19.55 percent. The 4.3 percent price growth in August may seem tame in comparison, but it still shows the popularity of places like Ravenna, Wedgwood, and Laurelhurst.
August 2022 median sale price: $897,000
Price growth year-over-year: 4.3 percent

Home prices are rising in West Seattle. Hey, at least the bridge is almost back.

2. West Seattle

A steady climb of inventory throughout Seattle has allowed would-be buyers to be more choosy than they could in recent memory. Which makes that modest 5.74 price growth all that more impressive as West Seattle's median sale price hovers near the $800,000 range.
August 2022 median sale price: $792,500
Price growth year-over-year: 5.74 percent

1. Central Seattle

At 2.17 months, inventory is the highest it's been all year in this core part of Seattle encompassing enclaves like Capitol Hill, Madison Park, and Montlake. Expensive single-family residences combined with luxury condo sales? That's a recipe for rising home prices.
August 2022 median sale price: $875,000
Price growth year-over-year: 11.46 percent

Falling

3. Queen Anne and Magnolia

These northern hoods seem to live and die by their single-family home sales, where properties are some of the most expensive in the city. In August, robust condo sales weren't enough to push Queen Anne and Magnolia into the black.
August 2022 median sale price: $950,000
Price growth year-over-year: -1.04 percent

2. SoDo and Beacon Hill

Inventory isn't everything. Although SoDo and Beacon Hill are rolling in home listings, with 2.63 months of inventory, 50 percent fewer home sales closed in August than the same time last year. That was enough of a difference to bump that price growth down a smidge.
August 2022 median sale price: $659,999
Price growth year-over-year: -1.27 percent

1. Belltown and Downtown

The core of the city was hammered during the pandemic as residents fled their close quarters to find more space out in the suburbs. But with steady and consistent gains in 2022 it seemed like downtown was finally making a comeback—until now. Even with 4.19 months of inventory, it might take a few months yet to see the heart of Seattle back to pre-pandemic demand.
August 2022 median sale price: $619,000
Price growth year-over-year: -15.21 percent

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