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Summary: There are many healthy housing markets across Washington State, but where are things really heating up? In this article, we’ll go over the current and forecasted real estate market in Washington State and the cities that are leading the pack.
According to recent data, Washington State is experiencing a very hot real estate market right now. Prices have risen quite a bit over the last year and are expected to do the same over the next year. But more specifically, Tacoma, Spokane, and Federal Way are leading the way in Washington State and will continue to do so over the next year in terms of home-price gains.
Big Forecasts for Tacoma, Spokane, and Federal Way Housing Markets
According to both Zillow and Redfin, Tacoma, Spokane, and Federal Way are experiencing very hot housing markets right now. They have seen big home-price increases over the past 12 months and are expected to see much of the same over the next year into the spring of 2021.
Here is a brief overview of the housing markets in these cities in terms of current average home value, price increases over the past year, and expected increases in home value over the next year into spring 2021:
- Average home price: $348,100
- Price increases over the past year: 7.7%
- Expected increases in home value over the next year: 5.6%
- Average home price: $257,500
- Price increases over the past year: 11.8%
- Expected increases in home value over the next year: 6.6%
- Average home price: $407,700
- Price increases over the past year: 8.4%
- Expected increases in home value over the next year: 5.8%
Low inventory levels within the housing market, combined with strong demand, have been lifting home prices across the Seattle Metro Area for the last few years. And more gains are expected for the coming months.
Seattle-area economist Eric Fox said that a thriving local economy and a lack of buildable land are contributing to the rapid price growth in the area. “There is also growing demand for housing thanks to the substantial in-migration of technology workers from the [San Francisco] Bay Area who are relocating to Seattle because of the robust job market and relatively inexpensive home prices when compared to those in San Francisco,” he added.
Home Prices Rising Across Washington State
While these kinds of conditions are most noticeable in the Seattle Metro Area, they’re occurring in other major cities across Washington State as well. That’s why cities like these rank high in housing market forecasts.
Home prices in Washington State rose by around 5.7% over the last year or so, according to Zillow. That’s a very healthy price appreciation rate, and prices are expected rise another 4.9% over the next year.
The message to home buyers is clear. If you’re on the proverbial fence about making a purchase, you might want to consider doing it sooner rather than later to avoid higher housing costs.
Disclaimer: This article includes forecasts and predictions offered by third-party sources not associated with our company. We have presented them here as an educational service to our blog readers.
Need a Home Loan in Washington?
Are you considering a home purchase somewhere in Washington State? Then financing is something you’ll need to line up. Sammamish Mortgage serves the entire state of Washington, along with Oregon, Idaho, and Colorado. We have a number of mortgage programs for you to choose from with flexible qualification criteria. Please contact us if you have mortgage-related questions, or if you’d like to receive a rate quote.