What is the housing market expected to look like in Idaho in 2021? Check out this infographic to find out!
Many centers across Washington State are expected to see housing price increases throughout 2021, including Vancouver. Prices have risen in the city over the past year, and will continue to do so at a similar pace throughout the next 12 months.
In This Article:
- Forecasts Suggest Continued Rise in Vancouver Home Prices
- One of the “Healthiest” Real Estate Markets in the Country
- Housing Inventory Still Tight, Despite New Construction
A recent forecast for the Vancouver, Washington real estate market suggests that home prices will continue rising through 2021 at roughly the same pace compared to 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 about 10.8% over the last year or so, from February 2020 to February 2021. 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 continue rising over the next 12 months.
A 10.8% growth is a hefty gain in prices and shows how healthy the real estate market is in Vancouver, WA.
Further to the north, house values in the Seattle area are expected to increase at a similar pace, which will stay in line with how prices behaved over the past year. According to Zillow, home prices in Seattle increased 9.8% over the past year.
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. As of February 2021, the average home price in Seattle is $812,108, while the average home price in Vancouver is $397,533. That’s partly why it was recently named one of the healthiest housing markets in the United States.
Recently, 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 local housing market in Vancouver is still very competitive due to limited inventory. In the overall Clark County, there is only a 1.3-month supply of inventory, which is far lower than 5- or 6-months’ worth of inventory that characterizes a balanced market.
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 10.8% 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. 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 winter of 2021. These outlooks were provided by third parties not associated with our company. We have gathered them here as an educational service to our readers.
Need a Home Loan in Vancouver?
If you’re looking for a mortgage in Vancouver, WA, we can help. Located in Bellevue, Sammamish Mortgage has been helping home buyers across the state of Washington, Oregon, Idaho, and Colorado since 1992. Our company offers competitive rates on a variety of mortgage programs, including FHA, VA and conventional. Please contact us if you have questions about qualifying for a mortgage loan in Vancouver.