Fast-cooling home prices remain high in Seattle - Axios SeattleLog InLog InAxios Seattle is an Axios company.

Fast-cooling home prices remain high in Seattle

Data: Zillow; Chart: Erin Davis/Axios Visuals Seattle’s housing prices are cooling faster than almost any other city's in the nation, but they’re still unaffordable for many, according to recently released real estate data. What they’re saying: “Homes are very expensive here, and that has historically made housing in Seattle more interest-rate sensitive than in other markets,” said Jeff Tucker, senior economist at Zillow. Driving the news: Of the 20 metro areas tracked in the , Seattle had the second-largest month-to-month price drop from July to August, 3.9%. Only San Francisco had a larger decline, 4.3%.Homes in Seattle were selling for around 2% less in August than in July, and in September the percentage of homes sold above list price dropped to 21.9, a nearly 18 point decrease year over year, .Interest rate hikes intended to curb inflation are having an impact on the housing market, with potential buyers pulling back as mortgage rates approach 7%. Yes, but: The median price of a single-family home in Seattle is still brushing up against a million bucks, with . Deceleration of prices doesn’t mean houses cost less. It means the price is not going up as fast as before.Seattle-area prices were up nearly 9.9% year over year, according to the . Coupled with mortgage rates that add , many would-be buyers have been shut out, while some sellers have retreated, . The big picture: The monthly mortgage for a typical home in the Seattle area takes 42.9% of the median household income, according to . That’s way above the 30% threshold for households to be considered cost-burdened.To get back to affordability levels, home prices nationally would have to drop 24.7%, according to the analysis. The bottom line: “A shock of this size is extremely unlikely, so buyers may need to reset their expectations,” the Zillow report said. Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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