Seattle house prices fall as temperatures rise. But buyers are weary

King County house costs dipped in June after hitting a report excessive a month earlier, an indication that the native housing market is already starting to chill from its spring peak.

The downtick comes as excessive mortgage charges proceed to eat into house consumers’ budgets, driving some to extra inexpensive suburbs and others out of the market fully. Potential sellers, in the meantime, usually are not wanting to listing their houses and tackle new, dearer mortgages.

The end result? A market that’s transferring extra slowly than the super-frenzied tempo that grew to become the norm through the early years of the pandemic whereas nonetheless locking out many middle-income consumers.

The median single-family house in King County bought for $965,000 in June, down from a month earlier and about 3% larger than a 12 months in the past, based on new information the Northwest A number of Itemizing Service launched Wednesday. Rental costs are following an analogous development: The median King County condominium bought for about $555,000 final month, down from Might however up 5% from a 12 months earlier.

Costs have elevated most within the final 12 months on the Eastside, the place the median single-family house bought for greater than $1.6 million final month, up 13%. The median house in Seattle bought for $957,000, up 3%. Rental costs had been flat in Seattle. 

Elsewhere within the area, the median single-family house bought for $830,000 in Snohomish County, up 7% from final 12 months; $563,500 in Pierce County, up 3%; and $577,500 in Kitsap County, up 5%. Median means half of houses bought for extra and half for much less.

Excessive mortgage charges, hovering round 7% for a lot of the 12 months, proceed to compound the ache of excessive costs. Charges started to climb in 2022 and reached the best ranges in twenty years. Economists count on they might dip later this 12 months, however usually are not more likely to fall dramatically because the Fed continues to battle inflation. 

As excessive prices weigh on some house consumers, many are merely pushing aside the search. Pending house gross sales dipped from Might to June and are both flat or down from a 12 months in the past in counties throughout the area. 

Spring is often the height of the native housing market, and exercise can dip in the summertime as individuals take holidays.

Even past the season, although, “a variety of consumers have been beat up with affordability and charges actually not coming down,” stated Seattle Windermere agent Mike Ferreri. Dwelling insurance coverage prices, generally included within the month-to-month mortgage cost, are additionally on the rise, squeezing budgets even additional. 

“They go and so they take a trip as a result of perhaps if they arrive again and purchase a home, they received’t have the ability to afford a trip subsequent 12 months,” Ferreri stated.

Many individuals are dealing with “purchaser fatigue,” stated Seattle Redfin agent Bliss Ong. 

“That’s actually the issue, they only obtained annoyed once more,” she stated.

“There isn’t a urgency. Now we have lots of people wanting however not feeling they’ve to tug the set off,” Ong stated.

Whereas houses throughout the Seattle-area spent solely a few week in the marketplace in Might, based on the newest out there Zillow and Redfin information, sellers whose properties linger longer could also be prepared to make a deal. Consumers prepared to think about these houses can generally purchase them beneath the listing worth or negotiate for further money to get a decrease mortgage charge, Ong stated.

Seattle-area single-family houses bought for a median 3% above their listing worth this spring, effectively beneath the 2022 peak of 13%, based on Redfin.

For months, a scarcity of houses on the market has helped maintain costs excessive whilst purchaser demand wanes. 

The availability scarcity appeared to ease a bit as a surge of latest houses hit the market this spring. Extra single-family houses have hit the market to this point this 12 months than throughout the identical interval final 12 months.

Nonetheless, the advantages of latest provide could also be restricted. Whereas listings are up from 2023, they continue to be anemic in comparison with prior years.

Ferreri described the situations as “that cusp between a purchaser’s and vendor’s market.”

In the meantime, as potential first-time consumers battle with excessive prices, lease costs have began to stage off.

“They’ve to actually resolve,” Ong stated, “Is that this price it for me to get into the market, when, in some circumstances, I’m going to be shopping for a home that’s not as good as my rental?”