National Home Data
Black Knight released their January appreciation data showing home values rose 0.2% for the month and were up 5.6% annually. Conversely, the CoreLogic Home Price Insights report showed home prices fell 0.1% in January and were up 5.8% year over year. Compared to last winter, home prices are holding stronger and seeing a lower seasonal decline, which could mean stronger spring appreciation numbers. While we are seeing a slight increase in inventory compared to last year, demand is up as we consistently see multiple offers on homes our clients want to purchase.
The Case Shiller Home Price Index showed that home prices rose 0.2% in December. Year-over-year prices are up 5.6% and continue to set new all-time highs. Since 2019, Case Shiller reported that home values have risen 46%. FHFA (Federal Housing Finance Agency) also released its House Price Index, which measures home appreciation on single-family homes with conforming loan amounts and does not include cash buyers or jumbo loans. The report showed prices higher by 0.1% in December and up 6.6% from a year ago. This is now the eleventh month the index has hit record highs in a row.
With all the data now in, here are the final appreciation numbers for 2023:
Case Shiller: 5.6%
FHFA: 6.6%
CoreLogic: 5.5%
Black Knight: 5.6%
Pending Home Sales rose 8.3% in December, which was better than the 1.5% the markets expected. The drop in mortgage rates clearly had a big impact on buyer demand and could be a sign of things to come if rates decline throughout 2024, as expected. New Home Sales measuring contracts on new homes for sale rose 8% in December, also showing the impact of rates dropping. The supply of new homes for sale continues to fall below demand at a 1.46-month supply. This is a slight increase from previous months but still well below the level needed to make a dent in inventory.
Recent data does little to assuage concerns about the limited inventory in the housing market. Existing home values are anticipated to appreciate as demand consistently exceeds supply, particularly for entry-level homes. This trend underscores the necessity for a balanced and sustainable approach to address the persistent supply-demand imbalance in the residential real estate market.
Local Housing Data
Local housing prices appear to have stabilized and, in some cases, are showing signs of moving higher, albeit at a more moderate pace than we’ve seen over the past several years. Inventory remains tight, and we continue to see more buyers than sellers. Markets and trends can vary depending on where you’re looking, so we provide some key indicators below broken down by county so you can see what your market is currently doing.
King County – Washington | |
Median Home Price $906,500 | Price Per Square Foot $584 | Forecasted Appreciation +5.76%1-Year | +27.55%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means almost 10,000 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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King County ranks in the top 10% for forecasted appreciation over the next 5 years. |
Snohomish County – Washington | |
Median Home Price $715,289 | Price Per Square Foot $436 | Forecasted Appreciation +5.69%1-Year | +27.17%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means over 4,000 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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Snohomish County ranks in the top 10% for forecasted appreciation over the next 5 years. |
Pierce County – Washington | |
Median Home Price $527,396 | Price Per Square Foot $333 | Forecasted Appreciation +5.35%1-Year | +24.11%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means over 4,000 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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Pierce County ranks in the top 10% for forecasted appreciation over the next 5 years. |
Spokane County – Washington | |
Median Home Price $415,375 | Price Per Square Foot $356 | Forecasted Appreciation +3.94%1-Year | +20.10%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means almost 2,000 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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Spokane County ranks in the top 10% for forecasted appreciation over the next 1 year. |
Multnomah County – Oregon | |
Median Home Price $525,538 | Price Per Square Foot $442 | Forecasted Appreciation +5.83%1-Year | +29.03%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means over 6,000 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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Multnomah County ranks in the top 10% for forecasted appreciation over the next 1 year and 5 years. |
Ada County – Idaho | |
Median Home Price $517,307 | Price Per Square Foot $295 | Forecasted Appreciation +5.63%1-Year | +25.38%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means there is a surplus of over 1,000 more homes being built annually vs. demand | | |
- Renters who can afford to purchase
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Denver County – Colorado |
Median Home Price $645,597 | Price Per Square Foot $598 | Forecasted Appreciation +6.64%1-Year | +28.60%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means over 1,500 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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San Diego County – California |
Median Home Price $936,250 | Price Per Square Foot $659 | Forecasted Appreciation +7.50%1-Year | +37.50%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means over 1,500 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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Los Angeles County – California |
Median Home Price $893,650 | Price Per Square Foot $634 | Forecasted Appreciation +8.00%1-Year | +40.00%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means over 1,500 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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Bay Area – California |
Median Home Price $1,650,000 | Price Per Square Foot $984 | Forecasted Appreciation +5.70%1-Year | +28.50%5-Years |
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- 5-year Gain based on the Median Home Price
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- Annual Household Formations
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- 1st Time Home Purchases to be taken from inventory
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* Which means over 4,000 more homes need to be built annually to keep up with demand | |
- Renters who can afford to purchase
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