Seattle Real Estate Market Takes a Breather
Seattle home shoppers are taking it slow this summer, even as for-sale inventory reached its highest levels in 12 months, the latest data from the Northwest Multiple Listing Service (NWMLS) shows.
Closed sales in the city were down 16.5 percent in June year-over-year, while for-sale listings soared 40 percent during the same time period. Seattle’s median home price came in at $859,000, up 3.7 percent from a year ago.
While an ebb in transactions is not unheard of this time of year, the NWMLS data suggest this was less a typical dip into the summer doldrums and more like a belly flop into burnout. Would-be Seattle buyers reached their limit after months of competing through increasingly-difficult market conditions—historically-low inventory, ever-climbing prices, and sticky high interest rates, to name a few.
The NWMLS notes, “Higher levels of for-sale inventory should have an impact in stabilizing price levels over the summer months.” But after prices reached record-highs in May, June’s small month-over-month price dip (-1.8 percent) did little to entice embattled home buyers. Closed sales in the city plunged almost 21 percent month-over-month, while active listings increased 8 percent.
Even though every Seattle neighborhood experienced a version of June’s buyer-pull-back and inventory bump, price growth was up and down all over the map. Here’s the list of neighborhoods with the largest price gains and losses. If you squint, maybe you’ll start to see the beginnings of more stabilized pricing.
List ordered by annual price growth.
Fastest Falling
3. Ballard/Greenlake
Not that long ago, the idea of a price drop in these popular neighborhoods would have caused a feeding frenzy. But June’s dip wasn’t enough to bring buyers and sellers together. Closed sales were down 17.7 percent year-over-year, while active listings increased by 30 percent.
Median price: $875,475
Year-over-year price growth: -2.3 percent
Months of inventory: 2 months
2. North Seattle
The area that encompasses everything north of Portage and Union Bay and east of I-5 was again one of Seattle’s busiest. Active listings increased 49.3 percent year-over-year, while closed sales dropped 12 percent. North Seattle was the only area where pending sales grew in June. They were up 20 percent year-over-year.
Median price: $868,000
Year-over-year price growth: -3.8 percent
Months of inventory: 2
1. Queen Anne/Magnolia
Buyers took a large step back from purchasing homes in this sought-after neighborhood. Closed sales were down 14.9 percent over last year. At the same time, active listings skyrocketed 66.7 percent, the most of any neighborhood in the city. After a stint of growth this year, June’s price drop may not be the last one this summer.
Median price: $874,975
Year-over-year price growth: -10.5 percent
Months of inventory: 3.13
Fastest Rising
3. Belltown/Downtown
Sitting on 7.4 months of condo inventory, the city’s core is out of balance, again—this time with too much supply. A market is considered “balanced” with four to six months of inventory. Active listings were up 43 percent over June 2023, while closed sales dropped 30 percent. Even so, June was one of the few positive growth months this year, but it may be fleeting. Pending sales tumbled 40 percent, the most in the city.
Median price: $649,000
Year-over-year price growth: 9.7 percent
Months of inventory: 7.4
2. Central Seattle
Prices continued to go up in Seattle’s most expensive neighborhoods. At the same time, closed sales continued to dip. In June, they fell 15.7 percent year-over-year, while active listings in and around Madison Park and Capitol Hill jumped 40.5 percent. Even with a much-needed inventory bump, we’re still crossing our fingers for more balance in the months ahead.
Median price: $957,000
Year-over-year price growth: 9.8 percent
Months of inventory: 3.1
1. SoDo/Beacon Hill
These neighborhoods can finally say they’re back in balance, as far as for-sale inventory is concerned. Building on May’s momentum, prices here surged in June. Active listings increased 26.2 percent, and closed sales dropped nearly 55 percent year-over-year. We’re watching price growth closely especially with the infusion of inventory into this market.
Median price: $840,000
Year-over-year price growth: 17.5 percent
Months of inventory: 4.1
