Although the United States is seeing a nationwide housing supply shortage due to the coronavirus pandemic, housing prices have been largely unaffected. The initial sharp decrease of both supply and demand meant that high home prices remained high, and although people are slowly beginning to look into purchasing homes once again, the supply hasn’t caught up yet — and prices are beginning to crawl upward.
Seattle is no exception. The total active listings for sale sharply dropped by 33% in a year-over-year comparison. Because of the shortage of property for sale in the Seattle housing market, our home prices and property values are on the rise. This is great for homeowners and sellers, and Seattle’s resilient market is expected to remain strong.
Norada Real Estate Investments reported that in June, the median home sale price in Seattle increased by 2.62% to $749,000, while King County as a whole saw a median price increase of 5.85% to $675,000.
[Related: How COVID-19 Will Impact Mortgage Rates]
The following are Redfin’s top ten cities with the most competitive housing markets, which highlights three Washington state cities and lands Seattle at number five:
- Tacoma, WA
- Spokane, WA
- Grand Rapids, MI
- Sacramento, CA
- Seattle, WA
- St. Paul, MN
- Aurora, CO
- Littleton, CO
- Minneapolis, MN
- Omaha, NE
Seattle continues to be one of the most competitive markets in the U.S. — but a report from Realtor.com showed that the cities expected to gain the most momentum are less coastal than the usual hot market stars of San Francisco, New York City, and Seattle.
- Boise, ID
- McAllen-Edinburg-Mission, TX
- Tucson, AZ
- Chattanooga, TN
- Columbia, SC
- Rochester, NY
- Colorado Springs, CO
- Winston-Salem, NC
- Charleston-North Charleston, SC
- Memphis, TN
Although the report was created in January of 2020, before the onset and impact of COVID-19, the list shows an urge to move inland to less expensive areas still close to major metropolitan cities. Regardless of the status of the pandemic, this trend could be one that sticks.
What are the factors contributing to a strong market and how do those come into play for Seattle? Demographics that influence housing prices in any region are supply and demand, population composition, regional reconomy, unemployment rates, projected job growth, city livability score, and of course, interest rates.
As for Seattle’s real estate forecast for the next 12 months, Zillow currently considers the area a cool market. Although right now the market is skewed in the seller’s favor because of the imbalance of supply and demand, the real estate database predicts that Seattle home values will fall by 1.7% over the next year, turning the market to the buyer’s favor.
Are you considering purchasing a home in Seattle? Contact Seattle Mortgage Planners today and our experts can help you along each step of the way.