Summary: Recent predictions from housing analysts suggest that the Seattle real estate market could continue to outpace the nation well into 2018, in terms of home price appreciation.
While there are signs that the nation’s real estate market is beginning to cool down, the Seattle-area continues to be red hot.
In fact, a recent forecast for the Seattle housing market extending into the summer of 2018 suggests that the city will continue to outperform the nation as a whole, with annual price growth above 7%. Limited inventory is a leading cause for this bold prediction.
Bolder Predictions for the Seattle Real Estate Market
Back in March 2017, we reported that the real estate research team at Zillow had predicted that Seattle home prices would rise 2.8% over the next 12 months. They’ve revised their outlook since then.
In their latest prediction for the Seattle real estate market, the company boosted its 12-month forecast considerably. They now expect the median home value in the city to rise by 7.3% over the next 12 months — following a gain of 14.5% over the last year
(This prediction was issued in June of 2017, which means it extends into the summer of 2018.)
But why stop at 7.3%? Another real estate forecaster offered an even bolder outlook for the Seattle housing market in 2018. Veros Real Estate Solutions, a property valuation company, recently predicted double-digit price gains for the Seattle area.
In March, the company the company singled out Seattle as having its highest forecast for annual home-price appreciation. They predicted that house values would rise by 10.7% during the 12 months from March 2017 to March 2018.
So here we have two predictions for the Seattle housing market that suggest it could outperform the nation in 2018, as it did in 2017. Recent forecasts for the nation as a whole suggest a more modest gain of around 3% to 4% over the next 12 months.
Tight Inventory Will Fuel Competition Among Buyers in 2018
Of course, when you look at the housing inventory situation in the Seattle metro area, it’s no surprise that these companies are offering bold predictions for the local real estate market.
Recent reports show that Seattle had just over a one-month supply of homes for sale. A “balanced” market is considered to be one with about six months worth of supply. When inventory falls well below that range, you have a sellers’ market situation. And that is clearly what’s happening in Seattle’s housing market in 2017.
With homes in such short supply, buyers are having to compete fiercely with one another for limited inventory. Bidding wars are common in the Seattle area, and desirable properties often elicit multiple offers within a few days of being listed.
Current trends and predictions for the Seattle real estate market in 2017 and 2018 send a clear signal to home buyers:
When entering the market, you should be prepared for stiff competition. In this context, “preparation” means having your financing lined up ahead of time, and also having a good understanding of current market conditions.
Here are some tips for surviving and thriving in the Seattle housing market.
Disclaimer: This article contains forecasts and predictions relating to the Seattle real estate scene through 2018. These forward-looking statements were provided by third parties not associated with our company. We have presented them here as an educational service to our blog readers.