Is the Eastside Experiencing a Housing Market Crash?
How the real estate tables have turned. In a tale as old as the pandemic, the formerly bonkers housing market in the Seattle suburbs is now falling back to earth. A few months ago, experts dubbed this normalization of inflated Covid-era prices the "Great Reversion."
That doesn't make it any easier to stomach, especially considering Seattle proper has already shown some surprising growth as of late. So who were the winners and losers of the Seattle suburbs in January?
Nestled between Renton and Tukwila, Skyway saw exponential year-over-year growth to kick off 2023. Only 10 homes closed compared to the 28 closed sales in same month the previous year, but the median sale price jumped by $164,875 nonetheless.
January 2023 median sale price: $709,375
Price growth year-over-year: 30.28 percent
Months of inventory: 1.4
1. Vashon Island
Can one home sale make a difference? When it comes to tiny Vashon, the answer is undoubtedly yes. Although there are a whopping nine months of inventory, only one sale closed in January. That was enough to swing the median sale price up by 37.4 percent.
January 2023 median sale price: $800,000
Price growth year-over-year: 37.4 percent
Months of inventory: 9
4. Kirkland and Bridle Trails
When we're talking about the falling price growth of million-dollar-plus properties, it's easy to lose perspective. But the numbers don't lie: In Kirkland and Bridle Trails, the median sale price plunged by $332,500 compared to January of 2022.
January 2023 median sale price: $1,175,000
Price growth year-over-year: -22.06 percent
Months of inventory: 2.84
3. Lake Forest Park
The Northwest Multiple Listing Service classifies just two suburbs as North King County: Lake Forest Park and neighboring Shoreline and Richmond Beach. Despite the same number of closed sales as January of 2022, both cities saw double-digit declines in price growth.
January 2023 median sale price: $678,000
Price growth year-over-year: -22.51 percent
Months of inventory: 2.26
The winter real estate market does tend to slow down, but compared to Enumclaw's $820,000 median sale price in October 2022, just three months ago, it's not so easy to chalk January's dramatic year-over-year decline to the seasons alone.
January 2023 median sale price: $485,000
Price growth year-over-year: -24.37 percent
Months of inventory: 2.77
1. Bellevue (East of I-405)
Yes, Bellevue and much of the Eastside is in a housing market decline, but context is important when looking at that -41.67 percent year-over-year price drop on the east side of Bellevue. Remember in January 2022, that same area had a year-over-year price growth of 100 percent.
January 2023 median sale price: $875,000
Price growth year-over-year: -41.67 percent
Months of inventory: 2.95