Community Spotlight: Downtown Seattle

There may not be another real estate market in Western Washington quite like Downtown Seattle.

Forget backyards, cul de sacs and three car garages. Downtown is about elevators, views, walkability, amenities and putting yourself in the middle of everything Seattle has to offer.

It is also a market where looking at one headline price can be incredibly misleading.

Over the past 12 months, Downtown Seattle condo sales have ranged from roughly $270,000 all the way to $6.6 million. That means two people can both say they bought a home Downtown and be describing completely different lifestyles.

So what does it actually cost to live in Downtown Seattle?

The Downtown Seattle Lifestyle

Living Downtown is about access.

Pike Place Market, the Seattle waterfront, Seattle Art Museum, Seattle Aquarium, restaurants, theaters, shopping and some of the city’s best known attractions are all within the Downtown core. Lumen Field and T Mobile Park are also nearby, while Climate Pledge Arena and Seattle Center are just to the north.

Transportation is another major part of the appeal. Link light rail runs through Downtown, King County Metro provides extensive bus service, the Seattle Monorail connects Westlake to Seattle Center and ferries provide access across Puget Sound.

For someone who wants an urban lifestyle, it is possible to live here with much less dependence on a car than in most communities around Puget Sound.

And Seattle’s waterfront has changed dramatically in recent years. The removal of the Alaskan Way Viaduct opened the door for a reimagined waterfront with new public spaces and connections between Downtown and Elliott Bay.

Downtown Seattle living today feels considerably different than it did even a decade ago.

What Are Homes Selling for Downtown?

This is where things get interesting.

Looking specifically at Downtown Seattle sales from the past 12 months, the median sale price was approximately:

$715,000

But the average sale price was more than:

$1,039,000

That difference tells you almost everything you need to know about this market.

The average gets pulled dramatically upward by luxury transactions. Two Downtown residences in the data sold for approximately $6.5 million and $6.6 million.

For most buyers trying to understand Downtown pricing, the $715,000 median is therefore much more useful than the million dollar average.

And even that number only tells part of the story.

Studios: Around $293,000 Median

Studio condos represented a relatively small portion of the sales data, but the median price came in around $292,500.

The typical studio sold was a little over 500 square feet.

For buyers who primarily want location, a city crash pad or a smaller footprint, Downtown Seattle can therefore have entry points considerably below what many people associate with Seattle real estate.

One Bedroom Condos: Around $575,000 Median

One bedroom units made up a large portion of Downtown sales.

The median sale price was approximately $575,000, with a median size of just over 800 square feet.

That creates an interesting comparison with the rest of Seattle.

Homes.com currently reports the median sale price across Seattle at roughly $850,000. Downtown buyers willing to trade land and additional space for an urban condo lifestyle can potentially buy well below the overall Seattle median.

Of course, the mortgage payment is only part of the equation.

HOA dues matter.

A lot.

Depending on the building and its amenities, Downtown condo dues can represent a significant additional monthly expense. Luxury buildings offering concierge service, fitness centers, pools, parking and other amenities can carry particularly substantial HOA costs.

That makes comparing Downtown condos about much more than simply comparing purchase prices.

Two Bedroom Condos: Around $1.14 Million Median

This is where Downtown pricing takes a noticeable jump.

The median two bedroom sale was approximately $1,144,500, with a median size approaching 1,500 square feet.

That is a completely different market than the one bedroom segment.

Many of these larger residences compete less with entry level condos and more with luxury housing elsewhere in Seattle.

Buyers at this level may be choosing between a larger Downtown residence with views and amenities or a single family home in another Seattle neighborhood.

That becomes a lifestyle decision as much as a real estate decision.

Three Bedroom Condos: Welcome to the Wild Side

There were relatively few three bedroom sales during the period, so I would not put too much weight on a single median number.

But the range tells the story.

The six three bedroom residences in the Downtown data sold between approximately $1.2 million and $6.6 million.

Two exceeded $6 million.

This is the part of Downtown Seattle where the phrase “condo” stops meaning what many people picture when they hear it.

Some of these residences are thousands of square feet, occupy premium floors in luxury towers and offer panoramic views of Elliott Bay, Downtown, the Olympic Mountains and beyond.

At the top of the market, they are essentially luxury homes stacked vertically.

Downtown Is Currently a Buyer’s Market

Another interesting piece of the current Downtown market is inventory.

Homes.com currently characterizes Downtown Seattle as a buyer’s market with approximately 14 months of housing supply.

That matters.

Buyers shopping Downtown may have considerably more negotiating leverage than buyers competing for certain single family homes elsewhere in Seattle.

Price is only one place negotiations can happen.

Depending on the property and seller, buyers may also be able to negotiate closing costs, financing assistance or other concessions.

For sellers, that makes pricing and preparation especially important. Buyers have choices, and a condo that does not compare well with competing units can sit.

In the Downtown sales data, the median market time was approximately 45 days.

This is not generally a market where simply putting a property on the market guarantees immediate competition.

Downtown Seattle Versus Seattle

One of the most interesting things about Downtown is how little the “Seattle median home price” actually tells you about buying here.

Across Seattle, Homes.com currently reports a median sale price around $850,000, with single family homes around $950,000 and townhomes around $750,000.

Downtown behaves differently.

A one bedroom condo might sell around the mid $500,000s.

A larger two bedroom can easily exceed $1 million.

A luxury residence can sell for several million dollars.

There really isn’t one Downtown Seattle housing market.

There are several of them sharing the same skyline.

Who Is Downtown Seattle Right For?

Downtown probably makes the most sense for someone who places a high value on location, entertainment, restaurants, transit, walkability and the convenience of a low maintenance home.

Someone who wants a yard, additional privacy or maximum square footage for the money is likely going to look elsewhere.

But for the right buyer, Downtown offers something most communities simply cannot duplicate.

You are not driving into Seattle to experience the city.

You are already there.

And depending on how much space you need, getting into Downtown Seattle may actually cost considerably less than you expected.

Unless, of course, you have your eye on the penthouse.

Then bring $6.6 million.

Question of the Week

If you had $1 million to spend on a home, would you rather have a luxury Downtown Seattle condo with views and walkability, or a traditional house with a yard somewhere outside the city?