The housing market in Redmond, Washington, has been a topic of interest for both buyers and sellers in recent years. With a population of just over 70,000, Redmond is a growing city that offers a variety of housing options, from apartments to single-family homes. However, the market has seen a significant shift in the past year, with prices dropping and homes staying on the market longer than before.

According to recent data, the median sold price for homes in Redmond is $1,194,703, which is a decrease of 0.4% since November 2022. This trend is reflected in other housing market reports, which show that Redmond is currently a seller’s market, with prices tending to be higher and homes selling faster. Despite this, there are still a significant number of homes available for sale, ranging from $168.5K to $28M.

Experts attribute the shift in the housing market to a variety of factors, including changes in the economy, the availability of housing inventory, and shifting demographics. As a result, both buyers and sellers are advised to carefully consider their options and work with a knowledgeable real estate agent to navigate the market. With this in mind, it is important to stay up-to-date on the latest trends and developments in the housing market in Redmond, Washington.

Overview of Redmond’s Housing Market

Redmond is a city located in King County, Washington, with a population of approximately 70,000 people. The city has a diverse housing market that caters to the needs of different income levels and lifestyles.

According to recent data from Redfin, the median home price in Redmond was $940,000 in October 2023, which is a 21.2% decrease from the previous year. On average, homes in Redmond sell after seven days on the market compared to 30 days in the previous year. There were 57 homes sold in October 2023, down from 74 in the previous year.

The median listing home price in Redmond, WA was $1.3M in October 2023, trending down -7% year-over-year, according to realtor.com. The median listing home price per square foot was $612.

Redmond’s housing market is diverse, with a mix of single-family homes, townhouses, and apartments. The city has several neighborhoods, each with its own unique character and housing options. Some of the popular neighborhoods in Redmond include Downtown, Education Hill, and Overlake.

The city of Redmond has a comprehensive Housing Needs Assessment that provides an overview of current and future housing needs in the city. The assessment analyzes the best available data describing Redmond’s housing stock, workforce, household demographics, housing market dynamics, and expected demand. The insights from this analysis help to build a factual basis for the Housing Action Plan (HAP) strategies.

Overall, Redmond’s housing market is dynamic and diverse, with a mix of housing options that cater to different income levels and lifestyles. The city’s Housing Needs Assessment provides a comprehensive overview of the current and future housing needs in the city.

Historical Market Trends

Price Evolution Over Time

According to Redfin, the median home price in Redmond, Washington was $940K in October 2023, which is a decrease of 21.2% compared to the previous year. RocketHomes reported that the median sold price of all homes in Redmond, WA was $1,194,703 in November 2023. This indicates a slight decrease of 0.4% from November 2022.

Realtytrac revealed that the median value for residential home transactions that occurred over the previous year in Redmond was $1,324,885.73. The number of current listings in Redmond is 10, and the percentage of properties for sale in the city is 10.00%.

Sales Volume Changes

Redfin reported that 57 homes were sold in October 2023 in Redmond, which is a decrease from 74 homes sold in October 2022. The average time a home spent on the market in Redmond was 7 days in October 2023, compared to 30 days in October 2022.

ZeroDown’s market hotness score indicates that Redmond is currently a cold market, with a score of 0 out of 100. This means that buyers can take their time when purchasing a home in Redmond, as there is less competition in the market.

The Redmond Housing Needs Assessment found that the population of Redmond has doubled from 1990 to 2018, which indicates a growing demand for housing in the area.

Current Housing Market Analysis

Median Home Prices

In November 2023, the median home sold price in Redmond was $1,194,703, down 0.4% from last year. The median price per square foot was $597. According to the Redfin report, the median sale price for all home types was $940K, trending down at 21.2% compared to last year. The median listing home price per square foot was $612, and the median listing home price was $1.3M in October 2023, trending down at 7% year-over-year. The minimum home price was $950K, and the maximum home price was $4.3M.

Inventory Levels

As of November 2023, the 98052 real estate market had 92 homes for sale. According to the ZeroDown report, there were 12 homes for sale, with a median home price of $1.9M. The report also stated that the market was cold, with a hotness score of 0 out of 100, indicating that buyers could take their time.

Days on Market

On average, homes in Redmond sell after 7 days on the market compared to 30 days last year. According to the RocketHomes report, 25 homes were sold under 30 days, and 10 homes were sold in 30 days or more.

Price per Square Foot

The median price per square foot in Redmond was $597, according to the RocketHomes report. The median listing home price per square foot was $612, according to the realtor.com report.

Factors Influencing the Market

Economic Indicators

The housing market in Redmond, Washington is influenced by various economic indicators such as inflation, GDP growth, and job creation. These factors can impact the demand for housing and the ability of individuals to purchase homes. For instance, if the economy is performing well, people are more likely to have stable employment and higher income, which can increase the demand for housing. On the other hand, if the economy is struggling, people may have less disposable income and may be less likely to purchase homes.

Interest Rates Impact

Interest rates also play a significant role in the Redmond housing market. As interest rates increase, the cost of borrowing money to purchase a home also increases, which can lead to a decrease in demand for housing. Conversely, when interest rates are low, people may be more likely to purchase homes as borrowing costs are lower.

Local Employment Trends

The local employment trends in Redmond can also impact the housing market. Redmond is home to several major technology companies, including Microsoft and Nintendo of America. These companies employ a significant portion of the local population and can impact the demand for housing. If these companies experience job growth, it can lead to an increase in demand for housing as more people move to the area to work.

Zoning and Development Policies

Zoning and development policies can also impact the housing market in Redmond. The city has implemented policies to encourage the development of affordable housing, which can impact the overall supply and demand for housing in the area. Additionally, zoning policies can impact the type of housing that is available in different areas of the city, which can impact the overall demand for housing in those areas.

Overall, the housing market in Redmond, Washington is influenced by a variety of factors, including economic indicators, interest rates, local employment trends, and zoning and development policies. Understanding these factors can help individuals make informed decisions when buying or selling a home in the area.

Comparison with Surrounding Areas

Redmond, Washington is a city located in King County, and it is known for its booming tech industry and beautiful outdoor spaces. As such, it is no surprise that the housing market in Redmond is quite competitive, with high prices and low inventory.

When compared to surrounding areas, Redmond’s housing market stands out for its high median home value of $1,077,180. This is significantly higher than the median home value for both King County ($811,700) and the state of Washington as a whole ($469,900). In addition, Redmond’s housing market has seen a 7.43% rate of increase over the past year, indicating a strong demand for housing in the area.

However, despite these high prices, there are other areas in the region that are even more expensive. For example, the nearby city of Bellevue has a median home value of $1,505,500, which is over $400,000 more than Redmond’s median home value.

It is also worth noting that Redmond’s housing market is not as competitive as some other areas in the region. For example, the city of Seattle has an extremely low inventory of homes for sale, which has driven up prices and made it difficult for buyers to find affordable housing. In contrast, Redmond’s inventory of homes for sale has decreased by 20% for 1 bedroom homes, 22.2% for 2 bedroom homes, 39% for 3 bedroom homes, and 23.1% for 4 bedroom homes, indicating a more balanced market.

Overall, while Redmond’s housing market is certainly competitive, it is not the most expensive or difficult to navigate in the region. Buyers looking for a home in the area should be prepared for high prices, but may find more options and less competition than in other nearby cities.

Future Outlook

Projected Growth

The Redmond housing market is expected to continue its upward trend in the coming years. According to the Washington State Housing Market Forecast, the median home price in Washington is predicted to increase by 2% YoY, and Redmond is no exception. The tight inventory in the area is likely to keep pushing prices up, leading to a projected growth of around 3.9% by September 2024.

The demand for housing in Redmond is expected to remain high due to its proximity to Seattle and the presence of major tech companies like Microsoft. This is likely to attract more buyers and investors to the area, which could further drive up prices.

Potential Market Risks

Despite the positive outlook, there are some potential risks that could affect the Redmond housing market. One of the major concerns is the possibility of an economic downturn, which could lead to a decrease in demand for housing and a drop in prices. Another risk is the possibility of rising interest rates, which could make it more difficult for buyers to afford homes and lead to a slowdown in the market.

Additionally, the ongoing COVID-19 pandemic could also have an impact on the market. While the pandemic has not had a significant impact on the Redmond housing market so far, it is possible that future outbreaks or lockdowns could affect the market in unpredictable ways.

Overall, while there are some potential risks to the Redmond housing market, the projected growth and high demand for housing in the area suggest that the market is likely to remain strong in the coming years.

Buyer and Seller Behavior Patterns

In Redmond, Washington, the housing market has been very competitive in recent years. Homes in Redmond receive an average of three offers and sell in around seven days. According to a report by RocketHomes, the inventory of one-bedroom homes decreased by 20%, two-bedroom homes decreased by 22.2%, three-bedroom homes decreased by 39%, four-bedroom homes decreased by 23.1%, and five or more bedroom homes increased by 5.9% in November 2023 compared to the previous month.

The median sale price of a home in Redmond was $940K last month, down 21.2% since last year. The median sale price per square foot in Redmond is $649, up 9.8% since last year. These figures suggest that the Redmond housing market is experiencing a slowdown, but it is still a seller’s market.

Buyers in Redmond are looking for homes that are move-in ready, with modern amenities and updated features. They are willing to pay a premium for these types of homes, but they are also looking for good value for their money. Sellers who want to attract buyers should consider making upgrades and repairs to their homes before listing them for sale.

Sellers in Redmond are looking for buyers who are pre-approved for a mortgage and have a strong financial profile. They are also looking for buyers who are willing to pay the asking price or close to it. In a competitive market like Redmond, sellers may receive multiple offers on their homes, and they may need to be prepared to negotiate with potential buyers.

Overall, the housing market in Redmond, Washington is competitive, but it is still possible for buyers and sellers to find success. By understanding the current market trends and buyer and seller behavior patterns, individuals can make informed decisions about buying or selling a home in Redmond.

Government Interventions and Regulations

The Redmond housing market has seen several government interventions and regulations aimed at ensuring affordable housing for residents. Some of these interventions include:

• Growth Management Act: The Washington State Growth Management Act requires an inventory and analysis of existing and projected housing needs as part of each jurisdiction’s comprehensive plan housing element. Redmond has adopted policies that speak directly to the provision of a variety of housing choices for people of different ages and incomes.
• Housing Action Plan: In March 2021, the Redmond City Council adopted the city’s first Housing Action Plan, which analyzed Redmond’s housing needs, garnered community and stakeholder input and buy-in, and formulated six strategies and 25 actions. The plan aims to increase the supply of affordable housing, preserve existing affordable housing, and ensure equitable access to housing opportunities.
• Fair Housing Laws: Redmond has embarked on housing enforcement efforts, in coordination with other cities in the region, to track compliance with fair housing laws and provide technical assistance and education to local landlords and property managers. The Fair Housing Center of Washington is the agency that provides fair housing.

These regulations and interventions are meant to ensure that the Redmond housing market remains affordable and accessible to all residents.

Market Opportunities and Challenges

Redmond, Washington’s housing market has been experiencing both opportunities and challenges in recent years. The city has seen a significant increase in housing prices, making it a seller’s market. However, this has also led to affordability issues for many potential buyers.

One of the major challenges facing the Redmond housing market is the lack of affordable housing options. The city has identified a housing gap of at least 9,000 units that need to be added to meet current and future needs up to 2040. This means that there is a significant opportunity for developers to build affordable housing units that meet the needs of the community.

Another challenge facing the Redmond housing market is the high demand for housing and limited supply. This has led to a highly competitive market, with homes selling quickly and often above asking price. As a result, buyers need to act fast and be prepared to make competitive offers to secure a home.

Despite these challenges, there are also opportunities in the Redmond housing market. The city’s strong economy and job market make it an attractive location for individuals and families. Additionally, the city has a diverse range of housing options, from single-family homes to apartments and condos, providing opportunities for a variety of buyers.

Overall, the Redmond housing market offers both opportunities and challenges for buyers, sellers, and developers. While the high demand and limited supply can make it a competitive market, there is also a significant need for affordable housing units. Developers who can meet this need while also providing quality housing options will likely find success in the Redmond housing market.