Seattle housing market is 'cooling' fast

A new report from Redfin says Seattle's housing market is "cooling" down faster than anywhere else in the country.

It says rising mortgage rates, inflation, and a slowing stock market between February and August of this year are fueling the decline.

Tacoma wasn't too far behind Seattle and came in 10th on Redfin's list of markets that are cooling down the most.

The report states: "The 10 markets cooling fastest are almost all either West Coast markets that have long been expensive, or places that became significantly less affordable during the pandemic because they attracted scores of relocating homebuyers. Las Vegas came in second place, followed by San Jose, CA, San Diego, Sacramento, CA, Denver, Phoenix, Oakland, CA, North Port, FL and Tacoma, WA."

The report also said many people have been priced out of the market, but adds the slowdown is lowering competition and giving those those who can afford a home more negotiating power. Redfin notes that Seattle, like others on its list, remain among the most expensive cities in the United States.

“These are all places where homebuyers are feeling the sting of rising home prices, higher mortgage rates and inflation very sharply," Redfin's chief economist, Daryl Fairweather, said in a statement. "They’re slowing down partly because so many people have been priced out and partly because last year’s record-low rates made them unsustainably hot. The good news is that the slowdown is dampening competition and giving those who can still afford to buy more negotiating power.”