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COVID-19: IS IT REALLY IMPACTING THE SEATTLE HOUSING MARKET?

May 26, 2020May 27, 2020
by ryanforbus

As a real estate broker in the Seattle market for several years, I frequently tell my clients they can compare Seattle’s housing market to a sine wave. What do I mean by that? Well, typically, beginning in the Spring (usually mid-March), much of Seattle’s real estate activity begins to rise as nature starts to bloom, allowing potential sellers to present their best foot forward with freshly manicured yards and excellent curb appeal. Activity remains hot throughout June, and then generally slows down as summer comes to an end. Once the last-minute vacations are over and school is back in session, we generally see Seattle’s real estate activity kick back into its normal pace.

This year, the market threw us a bit of a “curve-ball.” With COVID-19 making its debut during Seattle’s normal peak season, many Seattleites presumed our housing market would suffer as a result of all the restrictions placed on our normal activities. However, as a surprise to many of us, that couldn’t be further from the truth. At this moment, our housing market is still continuing in the same upward trend we’ve witnessed in this area over the past 6+ years! But how? Let’s dive into a few key factors that I feel have allowed our market to continue with this progression…

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1 – TREMENDOUS POPULATION GROWTH

For the past 6 years (2013 to 2019), Seattle was recognized in the top 2 in growth among the 50 most populated cities in the United States. Over the past decade, the Seattle area amassed 145,000 residents with an astounding growth rate of 23.8%, earning Seattle the well deserved title of fastest growing city of the 2010s. Many attribute this tremendous population growth period to the local economy, as large tech and manufacturing giants established deep roots here, such as Amazon, Microsoft, Google, Facebook, and Boeing, among others.

2 – LACK OF INVENTORY IS DRIVING FIERCE COMPETITION AMONGST OFFERS, WHICH ULTIMATELY IS BENEFITTING SELLERS

With the added growth, the Seattle area has suffered a severe lack of inventory. Currently, in the central Puget Sound region (includes King, Kitsap, Pierce, and Snohomish counties) NEW listings have dropped 32.3% this year, compared to 2019. This direct correlation means there are not as many homes to choose from, which consequently breeds stiffer competition (…even in homes that might otherwise appear undesirable). Our market is also starting to see numerous additional listings with an “offer review date,” which in this market, means that the sellers of these homes will likely receive multiple competing offers going above and beyond their original listing price.

3 – MORTGAGE RATES ARE MORE ATTRACTIVE THAN EVER

As we sit currently, a 30 year fixed mortgage is the cheapest it has EVER been (since Freddie Mac has been tracking rates from 1971) with current rates averaging around 3.25%. This has created the perfect storm for both buyers and potential sellers in the Seattle housing market. Translation? With as inexpensive as rates are right now, it has never been a better time to buy or refinance a home with borrowed money.

With all of these factors combined, it’s clear to say that the greater Seattle area is a fantastic place to invest in real estate. If you have any questions or would like to know more on this topic, contact me here or visit www.ryanforbus.com.

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COVID-19: IS IT REALLY IMPACTING THE SEATTLE HOUSING MARKET?