Greater Seattle Condo Market, The Year in Review 2023
Northwest MLS Condo Report
Perspective. After at least a 10 year run of rising condo prices, prices declined ever so slightly in 2023. Median price in 2023 finished at $465,000, down from $473,000 in 2022. Thus, median priced finished down 1.69%. On the other hand, the median price in 2013 was $202,000; therefore, even with a dip the median prices are up a yearly average of over 8.8%.
Note: We only went back the prior 10 years when looking at condo data.
Condo inventory has been low for some time. Four to six months of inventory is considered an even market, anything less is consider a seller’s market. In 2021 when rates were near all time lows, there was less than one month’s worth of condo inventory. Rates went up in 2022, especially as the year progressed. Even so, inventory was only 1.3 months. In 2023, inventory was 1.89 months. Still a seller’s market, but slower than the previous two years, so partially explains the median price drop for the first time in 10 years.
Inventory in 2023 did not stay low because of the amount of sales. In 2023, the number of condo sold across the NWMLS was 8,426. That was the lowest amount of condo sales compared to the previous 10 years. The next lowest was way back in 2013 when 10,395 condos sold. The reason inventory stayed low was because 2023 also saw the least amount of new condo listings in the same time period. Only 11,401 new listings, again second to only 2013 when 13,370 condos were added throughout the year.
Interest rates have a lot to do with the condo market. At the beginning of 2022, 30 year rates were hovering just above 3%. A year later at the beginning of 2023, 30 year rates were dancing around 6.5%. By the end of October 2023 rates almost reached 8%, then finished 2023 right around where they started: approximately 6.5%.
These higher rates do not only scare buyers, but also sellers. Many condo owners either bought when the rates were low or refinanced when the rates dropped. Selling their condo and replacing it with a new condo at the current rates is not appealing. Thus, even though the demand is down, so is the supply and as a result prices remained relatively steady.
Interest Rates 2022 Thru 2023
The Condo Market in Seattle, Bellevue, and Kirkland
King County is the king of the condo market in the NWMLS. For example, there were 8,426 condos sold across the NWMLS in 2023. Of those, 4,927 sold in King County. It is also in all intents of purpose were the most expensive condos are. The median price in 2023 was $509,000, second only to Okanogan County were only 11 condos sold (mostly in a resort).
Kirkland condos saw less transactions but actually higher average prices in 2023. For instance, during 2022, 633 Kirkland condos sold for an average of just under $749,000 compared to 428 condos that sold for an average of $844,786 in 2023.
The Bellevue condo market witnessed the same trend. In 2022, 530 condos sold for an average of just under $900,000 compared to 465 condos that sold for an average of $830,220 in 2023.
The Seattle condo market is the largest in the state. In 2022, 3,038 Seattle condos sold but decreased to 2,345 condo sales in 2023. The average price of a Seattle condo sold for $613,455 in 2022. Like Kirkland, it actually increased in Seattle to $648,232 in 2023. The Seattle condo market is not just Belltown/Downtown Seattle. For example, 441 condos sold in Belltown/Downtown Seattle for an average of $781,723 in 2023. On the other hand, during the same time, 431 condos sold in the NWMLS area that included Capitol Hill and Madison Park for an average of $631,115. In addition, Queen Anne, Magnolia, and Ballard are all neighborhoods with a healthy condo market. Even West Seattle sold a ton of condos (267) in 2023.
Seattle, Bellevue, and Mercer Island Luxury Real Estate Market
The luxury condo market in Bellevue, Kirkland, and Seattle was healthy in 2023. There were 467 condos that sold for $1,000,000 or more in 2023: 112 in Bellevue, 105 in Kirkland, and 250 in Seattle. In 2022, there were 542 sales: 169 in Bellevue, 111 in Kirkland and 263 luxury condo sales in Seattle.
The most expensive sale in 2022, was $7,150,000 for a 4,044 sq ft luxury Seattle condo in the Millennium Tower. The most expensive sale in 2023, was a 6,397 sq ft luxury Bellevue condo that sold for $12,850,000 at Bellevue Towers. Kirkland also saw a sale of $11,500,000 at the Waters Edge Condo. Hence, while there were more sales in 2022, there were some very large sales in 2023.
The State of Greater Seattle Condo Market in 2022?
In a nutshell, condo inventory stayed relatively low despite lower sales in 2023 because there were less new listings than the previous 10 years. Nevertheless, median price across the NWMLS held relatively stable compared to the previous year. Thus, even with some negative trends, the condo market still remains strong.
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 Kirkland, a luxury Bellevue condo, or your first home via a Seattle condo, please contact us
