In July, the median value of a home in the Seattle area fell 5 percent.
The median value is down about 25 percent over the past three years, according to the U.S. Census Bureau.
And while it’s still worth more than the median home price in many of the other metropolitan areas that are booming, the decline in Seattle is especially stark.
In the past 12 months, the number of homes in the region that are worth less than the current median home value has more than tripled, according the Real Estate Board of Greater Seattle.
The city’s real estate market has struggled for years, especially in the last few years.
While Seattle’s home prices have stabilized over the last five years, they’ve also dropped sharply in many other cities, particularly New York and Los Angeles.
It’s possible that the decline is due to a combination of factors, but the decline seems to have accelerated recently, according a Bloomberg survey of real estate professionals.
As for the decline, the city’s housing market is actually better than it was a decade ago, said Jim Smith, an associate professor of real-estate management at the University of Southern California.
In 2013, the Uptown neighborhood where Seattle’s downtown is located was still seeing a steady rise in home values.
And in 2013, a majority of buyers and sellers were buying single-family homes, according Smith.
The neighborhood had some of the lowest vacancy rates in the nation, Smith said.
“That’s a testament to the fact that the market was still strong in the first year of the Great Recession, and it’s a testimony to the resilience of the city.”
But the median price in the U-shaped market is dropping at an even faster pace than in Seattle, Smith noted.
The city’s median home sale price last month was $1.1 million, down from $1 million in June.
In June, the average sale price in Seattle was $3.3 million.
As a result, home prices in the city are also dropping at a faster rate than the national average.
Last month, median home prices dropped in eight of the 11 metropolitan areas surveyed by RealClearMarket.
The average home price fell 6.7 percent in the Los Angeles area and 6.6 percent in San Francisco.
In Washington, median house prices fell 6 percent in June and 6 percent nationally.
“It’s not a coincidence that the median house price in Washington, D.C., is at the same level as in Seattle,” Smith said in a phone interview.
While the price declines are not a good sign, they don’t mean the market is in deep trouble, Smith added.
If the trend continues, he said, the price decline could continue.
Smith said the median sale price for homes in Seattle and San Francisco would drop 6.2 percent in 2021.
That means the median sales price in both areas would drop by an average of $2,900, he added.
And the median number of sales in each area would drop 8.3 percent, compared with a national average of 6.4 percent.
Smith said his research shows that when a home is sold for less than its current value, the market suffers, as home buyers lose confidence in the market and the median market price is low.
“That’s why the Seattle market has such a strong return on its investment,” he said.