The latest housing market forecasts for Bellevue, Everett, Seattle and Tacoma suggest that these markets will see smaller home price gains in 2018 than they did over the last year or so. But despite a potential slowdown, all four cities are expected to outperform the nation next year, in terms of home price growth. Additionally, they all experienced double-digit price gains over the previous 12 months.
Housing Forecasts for Bellevue, Everett, Seattle and Tacoma
A new round of real estate market forecasts for Bellevue, Everett, Seattle and Tacoma point to a cooling trend for home prices. The housing research team at Zillow expects these markets to appreciate more slowly in 2018 than they did in 2017. And that’s a good thing, considering that the Seattle metro-area housing market has been overheated over the last couple of years (those double-digit gains are historically abnormal).
Below, you’ll find the current median home value for each city, along with price changes that occurred over the last year. Zillow’s forecast for the next 12 months (through November 2018) is also included. Home price trends for the nation as a whole are shown for comparison purposes.
- Bellevue: $846,500 // 15.0% change // 6.0% forecast
- Everett: $341,800 // 16.0% change // 5.9% forecast
- Seattle: $700,000+ // 14.6% change // 6.1% forecast
- Tacoma: $259,100 // 11.8% change // 4.8% forecast
- U.S. average: $202,700 // 6.9% change // 3.1% forecast
As you can see, median home values for the four Seattle-area cities rose much more than the national average, over the last 12 months. Likewise, the forecasts for 2018 are higher for the Bellevue, Everett, Seattle and Tacoma housing markets, compared to the U.S. as a whole. No surprises there.
According to a November report from the Northwest Multiple Listing Service (MLS), house values in Seattle climbed 17.6% from October 2016 to October 2017. The median home price in Seattle hit $735,000 in October. The Eastside housing market was even pricier, with a new median home value of $845,000.
You might think that these higher price tags would deter buyers. But that’s not the case. Pending sales across the area have actually risen over the last year or so, according to Northwest MLS. So clearly there is still strong demand from buyers across the Seattle metro area real estate market.
Lack of Inventory Still a Driving Factor
Lack of inventory is one reason why the Bellevue, Everett, Seattle and Tacoma housing markets are forecast to outpace the nation in 2018. Strong demand from buyers, coupled with limited supply, have put upward pressure on home values across the region. You can see this clearly when you look at the year-over-year price changes shown above.
According to the Northwest MLS, King County, Washington currently has less than a one-month supply of single-family homes and condos for sale. Industry analysts say that four to six months of supply is indicative of a balanced or “normal” real estate market. By this measurement, the housing markets in Bellevue, Everett, Seattle and Tacoma still favor sellers over buyers. And those conditions will likely persist as we move into 2018.
Disclaimer: This article includes housing market and home-price forecasts for the cities of Bellevue, Everett, Seattle and Tacoma, Washington. These projections were provided by third parties not associated with our company. We have presented them here as an educational service to our blog readers.