Review of the Seattle Area Real Estate and Foreclosure Market

With foreclosures at their normal levels and the usual return to the Pacific Northwest’s seasonal market, median home prices increased across the Seattle area in the second quarter of 2024 compared to last year, with the Eastside showing the highest annual appreciation. If you’re looking to buy but don’t need to sell, the summer season will offer a wide variety of listings, keeping in mind that the fall elections will likely influence all markets.

Seattle

With a market value of $970,000, the median home price in Seattle increased 8% year-over-year, only 3% below the $1 million peak set in the second quarter of 2022. Given the growth trend in recent quarters, it seems likely that peak prices will soon be reached again.

This increase is not due to low inventory or rising demand. According to experts, it is more likely due to interest rates below 7% and many buyers who, tired of waiting, are now seeking to purchase new properties.

Figures for some areas of Seattle:

Lake Forest Park saw a 34% drop in sales but also the largest price increase, with a 19% rise to $1,015,000.

Richmond Beach and Shoreline experienced a 19% increase in sales volume but were the only areas to see a 1% decline in median price.

Madison Park/Capitol Hill also recorded excellent gains, making it a strong spring quarter. 76% of homes sold at or above list price, and 71% sold within 10 days for an average of 105% of the list price.

Eastside

The Eastside has been thriving in recent months, with home values soaring by 16% year-over-year, with a median sale price of $1,675,000, a 4% increase from the 2022 peak. This shows a strong market, great buyer confidence, and steadily rising prices per square foot.

In Eastside South, 251 homes were sold, a 37% increase, with a median price of $1,799,000, a 20% increase.
West Bellevue’s median price rose to $3,574,000, up 13%.

Overall, the Eastside market is booming, with 1,773 homes sold, representing a 17% year-over-year increase.
New listings increased by 29% compared to last year. East Bellevue and Redmond also show significant growth, with median prices rising 7% and 27%, respectively. A good conclusion is that the Eastside remains strong after the COVID-19 pandemic era.

Mercer Island

On Mercer Island, home prices rose 18% year-over-year, with a median price of $2,585,000, though these prices are still 5% below their 2022 peak.

Compared to the first quarter of 2024, prices rose by 2.5%, indicating healthy and sustainable growth. In the second quarter of 2024, there was a 3% increase in new listings compared to last year, with three fewer homes sold in 2024 compared to 2023.

Despite this, demand for Mercer Island properties is strong, with 66% of homes selling within 10 days and an 18% increase in the median price, which could be explained by slightly lower interest rates and somewhat lower selling prices. Figures vary by neighborhood, but overall, the outlook is positive. For example, 15 homes were sold in Northend at $810 per square foot, with 73% selling at or above list price, and 60% within 10 days. Other neighborhoods, such as East Seattle and The Lakes, performed exceptionally, with all homes selling at or above list price within 10 days.

Condos – Seattle and Eastside

Seattle condos saw modest growth, with a 5% year-over-year increase in median price to $636,000, indicating strong demand.

Ballard and Green Lake condos led the list with a 31% increase in sales volume, while in Belltown, despite a 14% drop in sales, prices rose by 10%.

Waterfront

In this past quarter, Lake Sammamish led waterfront sales with 15 units sold, while the Eastside had 12.

Of Seattle’s nine waterfront sales, all but two sold in less than 10 days.

Mercer Island had six sales, all but one sold in less than 10 days, and four sold above the asking price.

Meydenbauer had the largest waterfront sale, fetching $21.3 million for an impressive 1-acre property with a house over 11,000 square feet. The most modest sale was a Rainier Beach gem with 50 feet of waterfront, sold in eight days for $1,725,000.

Available Foreclosures:

Seattle: 12 homes available.
Eastside: 8 homes available.
Mercer Island: 3 homes available.

By Elias DaSilva | October 2, 2024.