The value of condominiums in downtown Seattle continues to rise, and in 2017, a lack of new construction opportunities and increasing demand for in-city homeownership pushed the median home price of downtown Seattle condos to $625,000, a $100,000 – or 19% – increase from last year. Though the S&P/Case-Shiller Home Price Index has continued to report record gains for single-family home prices, up by nearly 13% in October 2017, it’s key to note that the index does not include new construction or resale condo properties, and hence doesn’t reflect condominium price growth.
As Dean Jones, President & CEO of Realogics Sotheby’s International Realty says, “buyers have struggled with anemic inventory all year and this imbalance of supply has led to higher prices, especially at lower price points.”
He notes that the number of home sales priced at $500,000 or less from 2016 to 2017 saw a 50-percent drop, at 126 units, while resales priced above $1 million increased over 40-percent.The few new construction opportunities on the horizon have spent little time on the market and are mostly sold, with just 38 units left at the 107-unit Gridiron Condominiums and the 389-unit NEXUS Condominium Tower now over 90-percent presold.
Looking to available resale properties currently on the market, there are just two homes listed in downtown Seattle below $500,000, and just five priced below $1 million. The median list price of an in-city condominium is now just over $1.7 million.