Seattle Condo – 5 Popular Neighborhoods
Seattle Condo Report
The Seattle real estate market changed over the course of the year. 2022 started out the year with both historically low interest rates and low inventory. This created a very hot (seller’s) market. For example, 2021 ended with the Freddie Mac 30 year fixed rate of 3.05% and King County only had 298 condo listings. In comparison, at the end of 2022, Freddie Mac 30 year interest rate was 6.42% and inventory was at 648 active condos.
King County Condo Inventory 2021 v 2022
2022 Freddie Mac 30 Year Fixed Interest Rates
However, the Seattle condo market was resilient. When including all sales (listed and unlisted condos), sales were down (3,039) but Seattle condo prices ended 2022 with a median price of $516,000. In comparison, the previous year ended with a condo median price of $495,000 on 3,598 closed sales. Furthermore, December median price was up $10,000 from the previous December ($500,000 vs $490,000). Thus, year-over-year seasonal prices were also up.
Change in Condo Market
After the pandemic hit the U.S. in early 2020, there was a shift in the real estate market where homes became more highly desired than condos. Owners wanted more indoor/outdoor space and were less worried about being closer to work, restaurants, bars, etc. This was particularly true for dense neighborhoods such as Belltown. For example, there were 344 active Belltown condos at the end of September 2020 while only 41 Belltown condos sold that month. While the condo market had began its recovery earlier, the condo inventory really began to tighten the following September. In Sept 2021, 93 Belltown condo sold and inventory sat at 163 at the end of the month. Thus, the year-over-year comparison, the sales had doubled, and the inventory had decreased by over half. Furthermore, a year later, the condo inventory began to peak again. However, even then, Belltown condo inventory was only was 195. Nothing close to the 344 active listings caused by the market change due to the pandemic.
Belltown Condos
The median price of a Downtown/Belltown condo was $650,000 in 2022 which was actually down from the previous year ($660,000). Although it is interesting to note that the average price was up ($800,457 vs $794,921). The total number of sales were down (591 vs 869) for the year. However, halfway through the year, Belltown condo sales were holding up with the previous year. Through June 2021, 561 condos had been listed on the NWMLS, of those 366 sold, for a median price of $635,000. Meanwhile, through June 2022, 672 condos had been listed (up 111), of those 351 condos had sold (down 15), for a median price of $665,000 (up $30,000). As seen in the graph above, inventory fell drastically at the end of 2021 across King County, while inventory increased towards the end of 2022. Belltown was no different. The number of new listings in each year were nearly identical (1,018 vs 1,021); therefore, the big change was with low interest rates, a huge amount of Belltown condos sold at the end of 2021.
Capitol Hill Condos & The Surrounding Neighborhoods
The area north of I-90 and south of Montlake Cut and between I-5 and Lake Washington is considered “Central Seattle” by the real estate community. It includes Capital Hill, Madison Park, Leschi, First Hill, Eastlake among others. The Central Seattle area had 672 condo sales for a median price of $520,000 in 2022. So that is more than the 591 Belltown condos that sold during the same time. In 2021, 750 condos sold in Central Seattle for a median price of $480,000.
Capitol Hill is a major part of this market. 361 Capitol Hill condos sold in 2022 for a median price of $495,000 which, unlike Belltown, was similar to the previous year in the number of sales: 364 condos. Also, unlike Belltown, the median price of $475,500 was less in 2021 than in 2022.
While Capitol Hill is a major part of the condo market, a lot of condos sell on Eastlake, First Hill, Madison Park, etc.
Green Lake Condos
Green Lake does not have huge condo buildings, but has condo buildings built from 1960’s to today. For example, 911 Condominium is a 4-story Green Lake condo with 24 units and finished in 1969. On the other hand, the Hendon is a 4-story building with 32 condos built in 2018.
In 2022, 62 Green Lake condos sold between 50th and 80th and I-5 and Greenwood. The median price was just over $551,000. The previous year there were 72 sales with a median price of just over $541,000.
Queen Anne Condo Market
It is interesting that the condos closest to the city core have shown the least resilience in pricing in 2022. Downtown/Belltown went from a median price of $660,000 to $650,000. Similarly, the Queen Anne condo market, which is just up from Belltown, saw a similar trend. In 2022, 333 Queen Anne condos sold for a median price of $500,000. In 2021, 421 Queen Anne condos for a median price of $515,000. The decrease was not huge, less than 3% in Queen Anne. Nevertheless, the overall condo market was up, but these neighborhoods did not fare as well.
West Seattle Condos
The West Seattle condo market includes some of the city’s most stunning condos. For instance, Alki condos looking back at the Seattle skyline are highly sought after. In 2022, the most expensive West Seattle condo was a 4,000+ sq ft unit at the Point Elliott Condominium which featured stunning views of Downtown Seattle. IT sold for $3.4 million.
The overall West Seattle market was strong. Median prices were up from the previous year ($499,950 vs $470,000). In addition, 2022 sales were down (261) but not by a significant amount (284 in 2021).
Seattle Luxury Condo Market
Ironically, the same number of Luxury Seattle Condos ($2 million and up) sold in 2022 and 2021. Thirty-six (36) Seattle luxury condos sold in each year. In 2022, the four most expensive luxury condos were in Downtown Seattle. Three in Fifteen Twenty-One Condo, but the most expensive was a Millennium Tower condo which sold for $7,150,000. In 2021, the most expensive luxury condo sold for $7 million in Escala.
The State of Greater Seattle Condo Market in 2022?
In a nutshell, condo inventory increased for the most part in 2022 before the seasonal drop in the late winter months. Rising interest rates had a lot to do with the increase in inventory. Nevertheless, average prices held and were up year-over-year. On the other hand, prices weakened as the year went on. Nevertheless, at year end, the condo prices year-over-year increase was up even if at a thin margin (+1.15%).
Despite some negative trends, the condo market still remains strong. With recent news of inflation dropping, there is reason to be optimistic. This is especially true if interest rates come down as expected by many when inflation subsides.
The future of the Seattle real estate market is hard to predict. Every real estate market brings new challenges. To navigate the current issues, contact one of Ewing and Clark’s real estate brokers. Ewing and Clark has provided exceptional real estate service to Greater Seattle since 1900. Whether you are looking for a waterfront condo in Madison Park, a luxury Belltown condo, or your first home via a Seattle condo, please contact us
