As Seattle continues to experience increased demand for in-city homeownership amidst scarce new construction condominium options, it’s little surprise that the median home price of a resale condos rose to $625,000 in 2017, up 19-percent compared to last year. That’s a much higher growth percentage than we’ve seen on the S&P/Case-Shiller Home Price Index, which indicated that the tri-county metro area home prices had increased 12.7-percent in October 2017. Seattle led the nation in home price appreciation all year, and it is worth noting that the index does not include new construction or resale condominiums.
Dean Jones, President & CEO of Realogics Sotheby’s International Realty (RSIR) says there were no new condominium deliveries in 2017. “Buyers have struggled with anemic inventory all year and this imbalance of supply has led to higher prices, especially at lower price points,” he added.
Jones points to an affordability crisis brewing in Seattle condos, as the number of sales priced below $500,000 dropped to 126 units, down a staggering 50-percent compared to last year. Resales over $1 million increased by 44-percent.
Looking at what is on the horizon, things may seem bleak for potential buyers, as the new Gridiron Condominiums project in Pioneer Square is mostly sold, and the 389-unit NEXUS Condominium Tower being built at the corner of Stewart Street and Minor Avenue is already 90-percent presold despite occupation in mid-2019.
As indicated in the above image, there will be several developments delivering additional new construction units, however they will not be completed until 2020 or later.