Back in August, we published a housing market forecast for the Seattle metro area in 2017. As it turns out, this is a very popular topic among local home buyers, sellers, and real estate agents. So we thought it was time for an update. Here are three more Seattle real estate market predictions for 2017.
1. Home prices will rise more slowly in 2017, but will continue to outpace the nation.
Home prices in Seattle will continue to rise steadily in 2017, but at a slower pace than the previous 12 months. This real estate market prediction was offered by the economists at Zillow. By their estimation, home values in the city rose 14.4% during 2016, and they’re expected to rise by around 6% in 2017.
While this does suggest a cooling trend, the Seattle real estate market will probably continue to outpace the nation next year, as it did in 2016. The company’s economists expect U.S. home prices (nationwide) to rise by 3% next year, which is half of the Seattle market prediction for 2017.
2. Rising home values and mortgage rates will produce a surge of home-buying activity in early 2017.
Home prices in the city are expected to continue rising in 2017. We covered that real estate prediction above. Housing analysts also exphttp://Get Today’s Vancouver Mortgage Rates and Costs in Secondsect mortgage rates to inch upward over the next 12 months. These trends and predictions have created a sense of urgency among local home buyers. As a result, experts have predicted a surge of home buying activity early next year.
The Seattle Times summed it up nicely in a December 5th article:
“As Seattle home prices continued to soar to unprecedented heights over the past couple of years, homebuyers still had one savior: very low mortgage interest rates. But even that bright spot is starting to disappear, adding tens of thousands of dollars to the cost of a home.”
It is this sense of urgency that drives Seattle real estate market prediction #2. In the first part of 2017, we will likely see a year-over-year increase in home sales, as buyers rush to beat rising housing and mortgage costs.
In fact, we’ve seen some evidence of this already. According to the Northwest Multiple Listing Service, the number of home sales in King County rose by more than 27% in November 2016, compared to the same time in 2015.
3. Inventory will remain tight, and the market will remain competitive.
What’s driving these bold predictions for the Seattle real estate market in 2017? Supply and demand, of course. There’s a lot of demand for housing in and around the city, but not enough inventory on the market to satisfy it. This is fueling competition and driving home prices north.
In December, the Northwest Multiple Listing Service wrote:
“The seemingly inexhaustible supply of ready, willing and able buyers continues to purchase available inventory. This imbalance in supply and demand continues to fuel multiple offers and drive prices upward.”
According to Realtor.com, the total number of homes listed for sale in Seattle dropped by 10.8% during 2016.
Housing demand, meanwhile, has remained high across the city. This is partly due to population growth. The city’s population has grown steadily in recent years and is expected to hit 686,800 this year, an increase of nearly 80,000 residents from 2010 (source: Washington State Office of Financial Management).
While we could see additional inventory come onto the market in 2017, it will probably still fall short of demand. So home buyers will have to bring their ‘A’ game when entering the market next year. We’ve created a Seattle home buyer “survival guide” for this very reason.
Disclaimer: This story contains 2017 real estate market predictions for Seattle, Washington. Forward-looking statements and data were provided by third parties not associated with our company. We have compiled them here as a service to our readers.