Seattle-area condo prices surged in January, marking a sharp contrast to the largely flat single-family home market. According to the Northwest Multiple Listing Service (NWMLS), the median condo price in King County jumped 21% year over year to $600,000, with Seattle and the Eastside seeing even steeper increases of 28% and 29%, respectively. However, a closer look reveals that these increases stem from the rising popularity of townhomes, backyard cottages, and accessory dwelling units (ADUs), all of which are categorized as condos despite often resembling single-family homes.
Seattle’s zoning changes have encouraged the development of ADUs, leading to a surge in new listings. These homes, which can be detached backyard cottages or add-on units with shared walls, offer buyers more privacy and space compared to traditional apartment-style condos. Many first-time homebuyers, eager to break into the market despite high interest rates, are drawn to these newly built units, which typically come with fewer shared amenities and lower HOA fees than high-rise condos.
Real estate professionals note that these properties have become a major driver of condo sales, pushing median prices higher even as traditional condo demand remains relatively soft. This shift has created an unusual market dynamic. While high-end condos are still selling – Seattle recorded at least nine recent sales over $1 million, and Redmond had six – many traditional condos remain on the market for extended periods.
Apartment-style condos, in particular, are moving slowly, with buyers hesitant to commit to high HOA fees that can exceed $800 per month. Meanwhile, demand for ADUs and townhome-style condos is outpacing supply, with buyers willing to pay premium prices for properties that function more like standalone homes.
This post was based on information found on The Seattle Times.
Photo credit: Dwell Development, Bardon Design Build and MRP
