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Summary: Where will prices rise the fastest in Washington State? More specifically, where can you expect to see a greater investment opportunity when buying a home in Washington? This article will outline where experts believe prices will increase fastest in the state.
A recent forecast suggests that the real estate markets in Spokane, Longview, and Kennewick-Pasco-Richland, WA could see the largest home-price gains of any metro area between now and January 2021.
At the beginning of January 2020, Veros Real Estate Solutions published an update to its “VeroFORECAST,” which predicts national real estate market trends over the next 12 months. The company analyzes trends and data from roughly 340 metropolitan areas across the United States.
Washington State Housing Markets Top the List
In their latest forecast, the company’s analysts predicted that Washington State would have three of the top 5 markets for home-price appreciation over the next year or so, and 4 out of the top 10. The housing markets in Spokane, Longview, and Kennewick-Pasco-Richland earned a spot in the top 5.
The below shows the metro areas that received the strongest housing market forecasts. The numbers are shown after each metro indicates the company’s projection for year-over-year home price gains through January 2021.
Washington Cities Among the Top 5 projected appreciating markets:
- Spokane, WA: 10.1%
- Longview, WA: 8.2%
- Kennewick-Pasco-Richland, WA: 8.0%
Right now, the average home price in each real estate market is as follows (as of March 2020):
- Spokane: $257,500
- Longview: $277,700
- Kennewick-Pasco-Richland: $309,100
It’s really not surprising to learn that three of the 5 fastest appreciating markets are expected to be in Washington State. The state as a whole attracts new residents from all over the country. Meanwhile, there aren’t enough homes listed for sale to meet demand in most cities across the state. This supply-and-demand imbalance puts upward pressure on home values.
What It Means for Home Buyers
Home buyers in Washington State who are “on the fence” about their timing might benefit from buying sooner rather than later. If house prices in the state do continue rising, as predicted, those buyers who postpone their purchases could end up paying more.
The forecast above — which singles out Spokane, Longview, and Kennewick-Pasco-Richland as three of the strongest metros for price growth — is just one of several reports we’ve seen in recent months. The general consensus and forecast from housing analysts appears to be that Washington State real estate markets will perform strongly into 2020 and 2021.
Over the last year or so, the median home value for the state as a whole rose by around 5.7% according to Zillow. And the company recently predicted that prices would continue rising over the coming months by about 4.9%. Zillow characterizes Washington’s real estate market as very hot right now, so prices are on the rise and demand is high among buyers in the state.
Granted, housing market forecasts are the equivalent of an educated guess. They are based on ever-changing trends and conditions. So they can be fallible at times. The big takeaway here is that home prices in some Washington real estate markets are expected to slightly perform roughly at par with the national average through the rest of 2020 and into 2021.
Disclaimer: This article contains housing market predictions and commentary relating to various Washington cities. This information was provided by third parties not associated with our company. We’ve presented it here as an educational service to our readers.
Have Questions About Mortgages in Washington State?
Whether you’re looking to buy in Spokane, Longview, Olympia, or any other city in WA, you’ll need a mortgage to finance it, and Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.