Redmond, WA
⚖️ Balanced Market📊 Fundamental Scores
🎯 The Bottom Line
Redmond's market is cooling with high prices and weak rent yields. The 53.6x price-to-rent ratio strongly favors renting over buying for now.
📈 Price History
📊 Market Activity
📈 Market Analysis
Market Cycle
The Redmond market is in a correction phase, evidenced by a -1.6% YoY price decline. This cooling follows a period of rapid appreciation, and the current sentiment suggests a transition from a seller's to a balanced market. With 39 DOM, properties are moving slower than peak frenzy periods, allowing buyers more leverage.
Supply & Demand
Inventory is building slightly, with 79 total listings and 61 new listings outpacing the 26 sold properties. This creates a 3.0 months of supply environment, moving away from the extreme scarcity of 2021. However, demand remains resilient enough that 50% of properties go off-market within two weeks, indicating that well-priced homes in prime locations still command immediate attention.
Pricing Power
Sellers have lost significant pricing power. The 99.1% sale-to-list ratio is a sharp drop from the 105%+ seen during the boom, meaning offers are now coming in at or below asking. The 26.6% price drop rate is a critical indicator; over a quarter of active listings have had to reduce price to attract interest. This dynamic shifts leverage to buyers, who can negotiate concessions or price reductions more freely than in recent years.
Redmond, WA Housing Market Forecast 2026–2028
🔮 Redmond Price Forecast 2026–2028
Redmond, WA Housing Market Forecast 2026–2028
For those tracking the Redmond housing market forecast through 2028, the data paints a picture of a market that is cooling from its pandemic-era highs but refusing to collapse. With a current median home price of $1,348,207 and a recent YoY price change of -1.6%, we are seeing a necessary correction rather than a crash. The 5-Year Price Change of 46.4% indicates that while prices may dip slightly in the near term, the long-term floor remains incredibly high due to the city’s economic anchors. Will Redmond home prices drop significantly more? Unlikely, given the Market Temperature of 63/100, which suggests stability rather than stagnation, supported by a healthy Days on Market of 39 days.
The affordability crunch is undeniable, highlighted by a Price-to-Rent Ratio of 53.6x, far above the national average of 18x. This extreme gap solidifies the "RENT" verdict for the short term, as the monthly cost of ownership vastly outpaces leasing. However, for Redmond real estate Redmond 2027, the outlook is stabilized by the city’s robust tech economy and the ongoing expansion of the Microsoft campus, which ensures steady demand from high-earning professionals. While high interest rates may cap appreciation, the scarcity of land and strict growth boundaries will keep inventory tight. Ultimately, the Risk Grade of B+ suggests that while immediate returns might be modest, Redmond remains a safe, long-term bet for equity growth.
Disclaimer: This forecast is a statistical projection based on historical price trends and should not be considered financial advice. Actual market outcomes may vary due to economic conditions, interest rates, local regulations, and other factors.
🏠 Rent vs Buy Analysis
Monthly Costs
The financial math heavily favors renting. With a median price of $1,348,207 and a rent of $1,864, the Price-to-Rent ratio is a prohibitive 53.6x. To justify buying, the monthly carrying costs (mortgage, taxes, insurance) would likely exceed $7,500+ at current rates, nearly 4x the rental cost. Even with a 20% down payment, the cash flow negative position is substantial, making homeownership a lifestyle choice rather than a financial one in the short term.
5-Year View
Over a 5-year horizon, the -1.6% YoY trend suggests flat to modest appreciation. If this trend persists, the equity build via mortgage principal paydown will be the primary wealth generator for buyers, but it may not offset the opportunity cost of renting and investing the difference. Renters have the flexibility to move without transaction costs, which is valuable in a shifting tech economy.
When to Rent
- If you prioritize monthly cash flow savings over long-term equity accumulation.
- If your employment situation is uncertain or you may relocate within 3-5 years.
- When the price-to-rent ratio exceeds 30x, as it currently does significantly.
When to Buy
- If you plan to hold the asset for 10+ years to ride out market cycles.
- If you require stability for a family and value the utility of ownership.
- If you can secure a property at a discount due to the 26.6% price drop rate.
🧮 Can You Afford Redmond? Interactive Calculator
Income Reality Check
Can you actually afford Redmond?
At $80k/year, buying a median home in Redmond will consume over half your income. This is considered severely "house poor". You may need a higher downpayment or a drastic increase in income.
💰 Investment Thesis
Cash Flow
Cash flow investors should avoid Redmond at current prices. The 53.6x P/R ratio ensures that rental income will not cover mortgage expenses. A property purchased at $1,348,207 generating $1,864/mo yields a gross rent multiplier (GRM) of 53.6, far above the viable investment threshold of 15-20x. Investors seeking positive cash flow must look to secondary markets or different asset classes.
House Hacking
House hacking is the most viable strategy here. By living in one unit and renting out the others, an investor can offset the high carrying costs. However, the 50 Affordability score indicates that even with rental income, the mortgage burden remains heavy for median earners. The strategy relies on appreciation to generate wealth, not monthly cash flow.
Target Investor
The ideal investor is a high-income tech professional looking for a long-term buy-and-hold strategy. They should have the liquidity to weather the -1.6% YoY stagnation or slight decline. This investor values the 46 Boomtown score (stability over explosive growth) and the B+ Risk rating. They are betting on Redmond's economic fundamentals (Microsoft, tech ecosystem) to drive appreciation over a 10+ year horizon, accepting negative cash flow for potential asset appreciation.
🏘️ House Hacking Calculator Interactive Calculator
House Hacking CalculatorOwner-Occupied Multi-Fam
🗺️ Neighborhood Breakdown
Entry-Level
Entry-level buyers (condos/townhomes) face the steepest barrier. While absolute prices are lower, the 50 Affordability score reflects that monthly costs still dwarf rental alternatives. Inventory is tightest here, with 50% of homes going off-market quickly, suggesting that sub-$800k properties remain competitive despite the broader cooling. Buyers in this segment must act fast but have more room for negotiation on price drops.
Mid-Range
The mid-range segment ($1M - $1.5M) is seeing the most inventory buildup. With 26.6% of listings seeing price drops, this category is where sellers are most motivated. The 39 DOM average is likely skewed by this segment. This is the sweet spot for buyers who can negotiate aggressively. The 99.1% sale-to-list ratio indicates that while prices are softening, well-maintained homes are still selling near asking if priced correctly.
Premium
Premium properties ($2M+) in Redmond are holding value better than mid-range, driven by scarcity and desirability of specific school districts. However, the -1.6% YoY decline affects the broader market, meaning even luxury assets are not appreciating. Days on market may be higher for overpriced luxury listings, but the 50% off-market rate suggests that true luxury gems are still traded privately. Investors should be cautious here as liquidity is lower.