Home prices in the Seattle metro area rose steadily during 2016, with double-digit gains reported by several sources.
Now, with the end of the year fast approaching, the big question is: Will Seattle home prices continue to rise throughout 2017? And all signs point to yes.
Economists: Seattle Home Prices Will Continue Rising in 2017
You don’t need a crystal ball to determine that home values in the city will continue rising over the coming months. All you have to do is look at current trends within the local real estate market. There is a high level of housing demand right, partly resulting from Seattle’s rapid population growth. But there’s not enough inventory on the market to meet demand.
As a result of this supply and demand imbalance (and other factors), experts predict that Seattle home prices will continue to rise through 2017 and into 2018. Beyond that is anyone’s guess, though it seems likely that home values in the area will trend upward for the next few years.
With that being said, we probably shouldn’t expect the double-digit gains experienced over the last 12 months. Housing analysts are predicting a nationwide real estate cooling trend in 2017, at least where home prices are concerned.
The housing researchers at Zillow recently estimated that home values in Seattle rose by 14.4% during 2016, as reported on December 15th. Looking forward, they are forecasting a gain of around 6.3% through the end of 2017. While this suggests a slowdown in year-over-year home price growth, the Seattle real estate market will probably continue to outpace the nation next year.
One of the Top Five “Markets to Watch” in 2017
The Urban Land Institute recently published its Emerging Trends in Real Estate® report, an annual publication that forecasts trends over the next year. They ranked Seattle as the #4 real estate “market to watch” in 2017, in a list that included nearly 80 major U.S. cities.
The report singled out population growth as one of several factors that will influence the Seattle real estate market in 2017:
“Population growth in Seattle is projected to remain at nearly twice the national rate. This pace is impressive given the current size of the metro area, at around 3 million residents. The combination of strong job growth and rising incomes is projected to push household formation up in 2017, which will increase demand for both single- and multifamily housing.”
This increased demand, along with constrained inventory, is why Seattle home prices are expected to continue rising in 2017.
Next Up: 3 More Articles on the Local Housing Scene
Over the past few weeks, we’ve published a number of housing and mortgage updates for the Seattle metro area. It’s part of an ongoing effort to educate local home buyers and mortgage shoppers going into the new year. Here are three related articles you might want to read next:
- Seattle Real Estate Predictions for 2017
- Seattle Condo Market Trends & Outlook
- First-Time Home Buyer Survival Guide