Your search results

Seattle Condo Prices Climb

Posted by Johnine Larsen on September 8, 2015
| 0

The August numbers are in, and condo numbers are up. The average price of a Seattle single-family-home was $575,000 last month (15 percent higher than last year), while the average price of a Seattle condo was $395,000 (32 percent higher than last year). In an already crazy-high real estate year, this is the biggest 12-month jump we’ve seen so far this year.

 

Why condos? Why has the price for these spiked so high?

For starters, competition. So many buyers are competing for so few homes (see last month’s report on Seattle’s tiny real estate inventory), that some would-be homebuyers have given up and are opting for more affordable condos instead.

Second, new condos aren’t being built. Apartments are more profitable for developers and builders, because (1) condos are liable to the state’s condominium act, and (2) there’s still an overwhelming demand for apartments.

“Everybody has so much work building apartments,” said developer Dave deBruyn, “they didn’t want the potential long-term liability of building condos.”

The only new condo projects coming near downtown are Insignia (698 units), Luma (168 units), and Gridiron (107 units).

Here’s an important clarification: in most areas, condo prices are still below their astronomical peak during the last housing boom (In many areas, prices are still 25 percent or more below that peak). However, condo prices have broken the last housing boom’s high-water mark in downtown Seattle, Capitol Hill, and West Bellevue. If you’re looking for a condo, steer clear of those three areas.

What does this mean for Seattle?

It means more renting. Consultant Brian O’Connor estimates that 57 percent of new Seattle households will rent, rather than face either the steep price of a downtown condo or the prospect of buying a house in the suburbs. That 57 percent is particularly significant in context: just a decade ago, only 13 percent of new households chose to rent.

We also know, as these prices continue to rise and people continue to move to Seattle, this is not another bubble. These high real estate prices are here to stay, and real estate agents are more important than ever in a market like this.

Are you considering a condo? Talk to us. We’ll look at your situation and make a recommendation. We’ll look at all the angles and let you know if a condo is a sound investment.

  • Sarah Donaldson
    Sarah Donaldson
    18:44 18 Jul 19
    Darcie was such a joy to work with. She felt like family during the sale of our house and the search for our new home. We may have found our forever home, but if we ever need a Realtor in future, Darcie from Real Estate Gals will be our first call.
    Brian Heagler
    Brian Heagler
    16:55 02 Jun 19
    I have worked with Johnine and her team for 19 years and have always received personal, knowledgeable and professional service and attention! There is never and pressure and they will guide you away from a property when appropriate, which is always appreciated when a market is hot and the tendency is to move quickly. I trust them and have never been let down!
    Anne Slater
    Anne Slater
    18:03 25 May 19
    Johnine Larsen is fabulous! She listened and came up with ways we could get what we wanted in a house and stay within our limited budget. When we found the house we wanted, she moved super fast to get the house inspected and implemented creative ideas to make our offer appealing. And out of 13 offers, we were selected and got our house. I recommend her to anyone buying a home.
    Amy Burdick
    Amy Burdick
    19:13 24 May 19
    Real Estate Gals made sure we found our perfect house! Then, when we were up against other bidders, Johnine worked tirelessly to ensure we were tops! Her extensive real estate experience combined with exceptional character and integrity provided peace of mind throughout the process. She also made sure we received the right value as a seller and got the transaction done quickly and efficiently. Simply stated: there is nobody better to help you find your dream home.
    Bill Hollman
    Bill Hollman
    22:21 19 May 19
    I'd give Real Estate Gals 6 stars if I could. We have used them multiple times, both in selling and buying homes in Seattle and the surrounding area. I can't say enough about the professionalism, knowledge, and patience they bring to the task of buying a new home, or selling your current residence. And they know the Seattle area so well, they'll offer valuable insights into the pros and cons of any location you may be to considering. Look no further, call Johnine at Real Estate Gals. You will be glad you did!
    Beth Guerra
    Beth Guerra
    01:14 18 May 19
    Johnine was a breath of fresh air in the real estate market. She listened intently to our wishes and goals, and was tireless in her search for our perfect house. She is well versed in both Seattle and the surrounding areas. She made sure all the details were taken care of after the inspection, and made the closing process seamless. She even gifted us with a housewarming present. Nearly 7 years later, we still receive holiday cards and well wishes. I highly recommend Real Estate Gals and will look no further in the future.
    Aidan Key
    Aidan Key
    15:44 17 May 19
    Johnine and the Real Estate Gals brilliantly took us through the home buying process two different times. Their willingness to educate (I was new), hear our home hopes, and support us through the process are a few of the reasons that I highly recommend this team. Speaking of a team, I love their collaborative business model - it meant that we--the home buyers--always had a returned phone call and an ability to look at a house on OUR schedule. Truly felt like they place the customer first!
    See All Reviews