2021 Seattle Real Estate Market Forecast

2020. What a year, right? One thing’s for sure—the pandemic didn’t do much to stop Seattle’s hot housing market. If anything, the pandemic had the opposite effect. The typical fall real estate market slowdown hasn’t happened at all in a year that continues to be filled with exceptions.

So, what does that mean for the 2021 Seattle real estate market? Here’s what we’re anticipating in the coming year.

 
Seattle Home Prices Will Continue to Rise

Single-family home prices have continued to rise, and Seattle is actually the city with the second-highest home price growth in the nation right now (10.1% price growth, year over year). Usually, home prices rise throughout the spring and level off in the fall, even in a hot market like Seattle, but that has not happened. That means that the 2021 Seattle real estate market will start strong.

Median list prices will likely continue to rise in the coming months, especially as remarkably low interest rates continue to bring new buyers to the market.

It’s a Seller’s Market and Will Stay that Way

As we just mentioned, Seattle’s home inventory levels are low due to high demand from buyers, and that likely won’t change any time soon. We have around a month’s worth of home inventory available right now. For reference, six months’ worth of inventory is considered a perfectly balanced market between buyer and sellers.

This means that buyers who are interested in buying in 2021 will need to know exactly what they’re looking for and be ready to put in an offer as soon as the right thing comes on the market.

And as a seller, well, it will continue to be easy to sell homes in Seattle. If you’re interested in selling a home now, there’s no need to wait for the spring. For a free, no-obligation home value report from our team, just go here to get started. This is a great first step in the process of getting ready to sell your home. You might just be surprised by what your home is worth!

The Condo Market Will Continue to Favor Buyers

We recently wrote a whole article about the downtown Seattle condo market and how it’s actually a great spot to be a buyer right now. This is because people are leaving the city in favor of suburban homes. When you can work remotely, there’s no need to worry about commute time, and people are taking advantage of that.

So, if you’ve wanted to buy a downtown Seattle condo (and we’ve got lots of reasons why that’s a good idea), now is the perfect time to do it because you’ll have many options, which may not always be the case in the future.

Interest Rates Will Likely Stay Low

Interest rates will likely stay low for a while (we wrote more about that and the effects of the election here), which gives buyers more buying power. If you’ve considered buying a Seattle home in the past but weren’t sure that you could afford it, it’s worth seeing if the drop in interest rates (truly, they are historically low) changes your situation.

And if you’re a homeowner who hasn’t yet refinanced, what are you waiting for? It’s a good opportunity to look into lowering your monthly payment or shortening your loan term. If you’d like a recommendation for one of our trusted lenders, give us a call at (206) 353-7625.

There Won’t Be a Mass Exodus from Seattle

While it’s true that some people have left Seattle for the suburbs during this pandemic (in search of more space with all the staying at home we’ve been doing), there hasn’t been a mass exodus that will completely reshape Seattle for years to come.

Additionally, although some people are leaving the city, we’ve also seen people coming from higher-cost-of-living areas like San Francisco and settling here in Seattle. Our population numbers will continue to rise in 2021 and beyond.

Rental Demand Will Surge

Speaking of population increases, there’s a lot of expectation that rental demand is going to surge in the coming years due to more and more people moving to the Seattle area. If you’ve considered buying an investment property, now is a really good time to enter the market for a couple of reasons.

First, interest rates are low, which means that you’ll be spending less on monthly payments. Second, investing in real estate during a time when there are certain to be renters helps you build a portfolio of assets that will bring in passive income. If you’re interested in building a real estate portfolio, connect with us at (206) 353-7625, and we’ll help guide you get started!

2021 Seattle Real Estate Market Will Stay Strong in 2021

There’s no need to worry about a housing market bubble in Seattle right now. All indicators point to a strong 2021 for our market due to the factors mentioned above.

This means that whether you’re looking to buy or looking to sell, it’s a good time to do either one (or both). If you’re interested in doing anything real-estate related in 2021, just connect with us here.

Let’s have a quick chat to discuss how the Sweet Living team can help you best accomplish all of your real estate goals for the year!