According to the real estate data analysts at Zillow, the Redmond, Washington housing market is considered “very hot” right now, with home prices expected to continue rising over the next 12 months. That’s the company’s latest forecast for the Redmond real estate market, extending through March 2018.
Redmond Housing Market Forecast Through Spring 2018
Like most cities around the Seattle metro area, home prices in Redmond have risen steadily over the last couple of years. The area’s population has grown due to its strong job market, natural beauty, and quality of life. This puts more home buyers into the market, boosting demand.
According to a recent article in The Seattle Times, home prices in Redmond and nearby cities rose by 20%, or more, from March 2016 to March 2017.
To quote the article:
“Areas that saw price increases of at least 20 percent include Jovita/West Hill Auburn, Federal Way, Sodo/Beacon Hill, Shoreline, Kenmore, the Eastside area south of Interstate 90, West Bellevue and Redmond.”
In April 2017, Zillow reported that the median home price in Redmond had risen 14.5% over the previous 12 months, reaching $727,700. Looking forward, however, it seems that prices could begin to rise more slowly. The company predicted a gain of 4.4% over the next 12 months (through April 2018).
Their forecast for the Redmond, Washington real estate market mirrors similar predictions for other cities across the Seattle metro area, in the sense that they are calling for smaller gains over the next year. That seems to be the common thread for local markets in the area, from a forecasting perspective.
Housing inventory in Redmond is tight right now. Meanwhile, the population continues to grow. According to Census Bureau data, the city’s population grew 11.6% from 2010 to 2015. This contributes to the imbalance between supply and demand, which is another common theme across the Seattle metro area.
King County Real Estate Scene a “Crazy Frenzy”
According to J. Lennox Scott, chairman and CEO of John L. Scott real estate: “It’s a straight up crazy, frenzy market in King and Snohomish counties.” And the data support this statement. About 75% of homes in the area are selling within the first 30 days of being listed, based on his company’s analysis.
According to the Northwest Multiple Listing Service, the median sales price for single-family homes in King County rose to $599,950 in March 2017, up 12.9% from a year ago.
The bottom line: While home prices in the area show signs of cooling, they’ll likely continue moving north for the foreseeable future. But housing inventory is the big story here. Home buyers entering the Redmond real estate market in 2017 should be prepared to compete with other buyers for limited inventory.
And on that note, be sure to check out our Seattle home buyer survival guide for tips on thriving in a hot housing market.
Disclaimer: This article contains trends, predictions and forecasts for the Redmond, Washington real estate market through 2017 and into 2018. Data and commentary were provided by third parties not associated with our company. We have presented them here as an educational service to our readers.