How Coronavirus affected the Seattle Housing Market

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The onset of the Coronavirus pandemic changed every part of life globally, but the Seattle area real estate market remained strong and has been on the rise ever since. People still bought and sold their houses, families grew, and people relocated.

House prices are up, home showings are all over the internet, and several cash offers have been presented to real-estate agents. More people are working from home, therefore, creating the need for more space for home offices.

Are More People Moving to Seattle?

Seattle is a hub representing both business and culture, making it an attractive option for homeownership. There has been a mass exodus from urban areas due to the pandemic, but Seattle’s housing market was strong in 2020 and continues to be so.

Since 2020, home prices in the city have risen by83.2%, which is twice as much as the national average increase of 42% over ten years. A significant reason for this growth is that between 2014 to 2019, Seattle was the 3rd fastest growing American city.

Corporate opportunities in Seattle are attracting more and more people every year. Huge companies like Amazon, Boeing, Microsoft, and Starbucks have their massive headquarters based in Seattle. These companies make up a considerable portion of Seattle’s economy.

Many of these people are young and educated. Some of the best companies employ them to work, meaning that they bring them money to the market.

Buyers in Seattle are very competitive and eager to close these deals quickly. This competitiveness is brought about by high demand and low inventory, thus raising house prices.

There are many corporate opportunities in Seattle, and these combined with a desirable city that is walkable and the local culture makes it a crucial part of America. Population growth continues to rise, leading to the massive growth of Seattle’s real estate market.

Is It a Good Time to Buy?

Buyers are looking for good opportunities for Seattle houses on sale. House prices are going down while the unemployment rate has gone up. This drop in prices makes it the best time to buy. Many cash buyers have bought their houses when the financial crisis is at an all-time low. This time of crisis is the best time to be a buyer.

There have been a few bidding wars during this post covid period which makes it a great time to sell. Sellers should also hold out for the best deals. Home de-listings rose during the onset of the pandemic.

Potential home sellers that wanted to sell decided to de-list as getting their homes off the market seemed like a good idea at the time. The looming financial crisis brought on this mindset. The major life changes that came about due to the events of 2020 and 2021 have brought about the rise of people who are eager to sell their houses.

The housing market has been shaped by unemployment and the availability, or lack thereof, of credit. The dip in home prices has led to mortgage lenders developing cold feet and pulling back lending.

The dip prevented the average working-class American from buying a house. This made people sell house for cash post covid as cash buyer took advantage of the availability of homes for sale at reasonable prices. Since the cash buyer left in the market, they had the leeway to dictate the prices.

After the pandemic onset, web traffic concerning purchases of homes rose in April 2020. These purchases suggested a renewed interest in the purchase of homes.

The Coronavirus caused many people to lose their jobs and eventually put their homes up for sale. This has increased homebuyer interest, more so in Seattle, which is understandable because you would want to sell your house fast if you lost your job.

Did the Housing Boom Raise House Prices?

In 2021 4,078 houses in Seattle were for a staggering $100,000 to $299,999 above the asking price. Wow! That’s the price of a whole other home. This figure is compared to last year’s 362 houses sold above the asking price for this amount.

This data shows the boom in the housing market as inventory is at a record-low, creating bidding wars. On average, a home in Seattle sold for way more above the asking price this year than last year. In 2021, people sold 580 homes for $300,000 above the asking price instead of 16 homes in 2020.

Many employees from Seattle-based tech companies had to work from home during the pandemic, and they did not want to do this in cramped apartments. This made them head out to purchase larger homes that offered more space to set up home offices.

These employees had enough money to put up major competition against other buyers, driving up prices in the Seattle area real estate.

Job losses brought about a surge in demand for homes. White-collar workers did not want to lose their jobs or quit and searched for bigger houses that provided more space. They took advantage of the meager interest rates that were present.

Home prices went up as demand for homes rose, and homes for sale were not in plenty. This demand made homeownership more difficult for would-be buyers. However, if you were a seller, you would want to sell house for cash post covid to cushion you during the hard financial times. Buyers and brokers in Seattle were heartbroken due to the tough competition against many offers and cash.

In Seattle, half of the homes put up for sale went pending in April 2021. This means that the seller took up an offer. In this economy, you would want to sell your house fast. Tacoma had almost 74% of homes sell over the listed price.

Real Estate Forecast for the Next Year

A significant drop in inventory in the last 6 to 7 years led to a massive rise in home prices in Seattle. Buyers fought over a low number of properties available in the market. Seattle is known for having one of the best real estate investments countrywide.

Seattle home values increased tremendously beginning late 2012 through to 2018. The prices then started dropping steeply for more than a year after that up until November 2019. Beginning December 2019, the trajectory took on an upward trend.

In 2020, the appreciation rate in Seattle had been low but positive at 6.61% and at 2.44% in the last quarter. The home prices in Seattle are expected to rise by 8-10% in the next year.

The rise means that demand might exceed supply, and sellers will have an advantage over buyers in setting their prices and the subsequent negotiations. This means that the costs will increase. The same price increase experienced in 2020 continues to 2021, and a significant boost in prices will happen and peak during buying season.

Many Opportunities for Buyers and Sellers in Seattle

Options will be in plenty for both buyers and sellers if they act quickly. Sellers and buyers are quickly adjusting to the restrictions that affected the real estate industry caused by the pandemic. Virtual tours are facilitated by real estate agents making the whole process safer and more convenient.

We at will take you through this tedious process and give you a heads up on the best offers out there. Visit our website today for more details.