A recent forecast for Seattle home prices suggests that house-value increases over the next year could be on par with historical averages. One source predicts a gain of around 3.8% between now and April 2018. Competition among buyers remains high, due to limited inventory.
The Latest Home-Price Forecasts for Seattle
Home prices in the Seattle metro area have risen steadily over the last couple of years, far outpacing the national average. House values in the city, and across much of Washington State, have risen by double digits over the last year alone.
But a recent Seattle home price forecast offered some contrast, suggesting that house values could rise more slowly over the coming months when compared to the last two years.
This month, the economists at Zillow predicted that home prices in Seattle would rise by 3.8% between April 2017 and April 2018. That’s a big change from the double-digit annual gains seen over the last couple of years. But it’s really a return to normalcy. Historically speaking, home values in the U.S. tend to rise by around 3% annually (with housing booms and busts aside).
Zillow’s forecast for Seattle home prices is still higher than their national outlook. The company’s research team expects house values nationwide to rise by 2.4% during the same 12-month period mentioned above.
Of course, this is just one forecast. Other analysts have predicted larger gains for Seattle house prices over the next year, given the current shortage of supply in the area. But the general consensus appears to be that appreciation will slow in the months ahead.
Already there are signs that home prices in the area might be starting to cool. Earlier this year, the Northwest Multiple Listing Service reported that single-family home prices in Seattle rose by only 2.7% in January 2017, compared to a year earlier. That was way down from the 24% annual growth recorded last winter. It was the slowest growth seen in Seattle in nearly three years.
One of the Most Competitive Housing Markets
While the latest home price forecasts for Seattle suggest a slowdown of appreciation, the market itself is still pretty hot. This is largely the result of limited inventory. There just aren’t enough homes listed for sale in the area to satisfy demand, and this continues to put upward pressure on house values.
According to a recent news release from the real estate brokerage Redfin, Seattle is one of the most competitive housing markets in the country right now. This won’t come as a surprise to local home buyers and real estate agents.
To quote the Redfin report:
“Denver, CO, and Seattle, WA, were the fastest [selling] markets, where the typical home was under contract in just eight days. Oakland, CA and San Jose, CA were the next fastest markets with 13 and 14 median days on market respectively.”
So buyers who are planning to enter the market in 2017 should be prepared to act quickly, when the right house comes along. Our Seattle home buying survival guide will help you get ready.
Disclaimer: This article contains Seattle home price forecasts for 2017 and 2018. These predictions were offered by third parties not associated with our company. We have presented them here as part of our educational mission in support of homeowners and home buyers.