A recent forecast for the Vancouver, Washington real estate market suggests that home prices will continue rising through the summer of 2019, but at a slower pace than the previous year. Vancouver was also singled out recently for having one of the “healthiest” real estate markets in the country, when measured by stability and affordability. Here’s an updated look at local housing trends.
Forecasts Suggest Continued Rise in Vancouver Home Prices
The median home value in Vancouver, Washington rose by nearly 6.4% over the last year or so, from April 2018 to April 2019. That’s based on the latest data from the real estate information company Zillow.
Looking forward, the company’s economists expect home values within the Vancouver real estate market to rise by around 2.3% over the next 12 months. This prediction was made in April 2019, so it extends into the summer of 2020.
2.3 percent growth is not far off from the historical average for year-over-year home price gains in the U.S., dating back several decades. So it seems that the Vancouver housing market could be getting back to normal, in terms of annual appreciation.
Further to the north, house values in the Seattle area are expected to fall by around 3.4% over the next year. This comes after median home values have already dipped by about 3.5% during the course of the last year. However, this decline was preceded by a couple of years of record-breaking, double-digit gains across the Seattle real estate market. So by comparison, home values in the Vancouver market appear to be on the upswing. It’s important to realize that these trends could change. As we’ve seen, markets can fluctuate at almost any time, and so we shouldn’t be surprised to see new trajectories in the not-too-distant future.
One of the “Healthiest” Real Estate Markets in the Country
The Vancouver real estate market is much more affordable than the Seattle area, relative to median household incomes. That’s partly why it was recently named one of the healthiest housing markets in the United States.
Back in early 2018, SmartAsset, a financial software and data company, ranked Vancouver, Washington as the seventh healthiest real estate market in the nation. To determine their rankings, the company focused on stability and affordability within local housing markets. They also looked at fluidity, which in this context refers to how quickly homes are selling. Another key measurement was “risk of loss,” which refers to the potential for depreciating home prices over time.
Based on these and other factors, analysts ranked Vancouver as the healthiest real estate market in Washington State, and one of the 10 healthiest in the nation.
Housing Inventory Still Tight, Despite New Construction
The forecast for Vancouver’s real estate market sees a gradual cooling down of home prices. But don’t let that fool you. The local housing market is still very competitive due to limited inventory.
In short, there aren’t enough homes currently listed for sale to satisfy buyer demand. This is one of the reasons why home prices rose by nearly 6.4% over the last year or so.
The supply and demand situation could change over time though, as a result of new construction. Residential real estate development has been ramping up across the Vancouver area, including a new home subdivision called Koles Landing. Over time, this could shift the balance of supply and demand to create more favorable conditions for home buyers.
But for now, real estate professionals in the area say that the market still favors sellers over buyers, due to limited inventory.
Disclaimer: This article contains predictions and forecasts for the Vancouver, Washington real estate market through the summer of 2020. These outlooks were provided by third parties not associated with our company. We have gathered them here as an educational service to our readers.