Last week's economic news includes several reports about housing markets.The S&P Case-Shiller 10 and 20 city housing market indices, the FHFA House Price Index, New Home Sales and Pending Home sales reports suggest that the national housing market continues to grow, but at lower rates.
Housing markets located in Seattle’s Eastside area all have strong home-price forecasts for the rest of 2017 and into 2018. In fact, the one-year forecasts for most Eastside housing markets are more than double the projection for the nation as a whole.
Of course, this shouldn’t come as a surprise to anyone who has been following real estate trends in the Seattle metro area. Tight supply and strong demand have boosted home prices over the last couple of years. House values in Seattle’s Eastside, as well as the broader metro area, have risen much faster than the national average. And it looks like this trend could continue well into 2018.
Home Price Forecasts for Seattle Eastside Cities
In July, the real estate information company Zillow updated its long-range forecasts for housing markets across Seattle’s Eastside. While they expect prices to rise more slowly over the next 12 months or so, they also anticipate that these cities will continue to outpace national home-price trends.
Here’s a summary of their economists’ predictions and forecasts for key cities in the Seattle Eastside area:
- Bellevue, Washington. Researchers expect home prices in Bellevue to rise by 7.4% over the next 12 months. This forecast was issued in July 2017, so it extends into summer of 2018. Home prices in Bellevue rose by more than 15% over the last 12 months.
- Bothell, Washington. This Seattle Eastside city also has a bold housing market forecast, with prices expected to rise by 7.2% between now and July 2018. House values rose 14.8% over the last year, according to the company’s latest assessment.
- Issaquah, Washington. Issaquah has a 12-month forecast projecting a 7.6% increase in the median home value.
- Kenmore, Washington. While Kenmore has the lowest home-price forecast among the Seattle Eastside cities on this list, it is still more than double the national outlook. The company’s analysts expect house values in Kenmore to rise by 6.5% over the next 12 months, compared to their projection of 3.2% for the nation as a whole.
- Kirkland, Washington. The Kirkland housing market has one of the strongest forecasts among cities located in the Seattle Eastside. Housing researchers recently predicted that home prices there would rise by 8.0% between now and July 2018.
- Renton, Washington. The city’s long-range outlook closely matches those listed above, with an expectation for a 6.8% rise in home values through summer of 2018. Prices rose by nearly 15% over the previous 12 months, which is more than double the national average.
- Redmond, Washington. Par for the course. The housing economists at Zillow predict a gain of 7.6% over the next year, following a substantial increase of 16.7% over the last 12 months. View an in-depth forecast for Redmond.
- Sammamish, Washington. Sammamish is one of the pricier cities in Seattle’s Eastside. According to recent estimates, the median home value has now climbed above $900,000. Prices are expected to continue rising over the next year and likely beyond that as well, with a one-year forecast for 7.4%.
- Woodinville, Washington. Lastly, we have the real estate market of Woodinville, which has a 12-month home price projection of 7.0%. House values in the city rose by 14.2% over the last year.
Granted, these are just forecasts based on current market trends. They are the equivalent of an educated guess. So you probably shouldn’t “bank” on them.
The key takeaway here is that home prices in Seattle’s Eastside are predicted to continue rising steadily through the end of 2017 and into 2008. Additionally, the general consensus is that house values in these Eastside real estate markets will continue to outpace the national average, as they have over the last couple of years.
Disclaimer: This article includes projections and forecasts for the Seattle Eastside real estate market extending into the summer of 2018. These statements were provided by third parties not associated with our company. We have compiled and presented them here as an educational service to our blog readers.