It was an active summer for the Vancouver, Washington housing market. Strong demand and limited inventory pushed home prices higher and led to quicker sales. The long-range forecast for Vancouver’s housing market, however, suggests that the market might cool a bit over the coming months. This mirrors the broader outlook for the Pacific Northwest as a whole.
Here are the latest home price trends for the Vancouver, WA housing market, along with a forecast for 2017.
Significant Home Price Gains in the Last Year
Depending on the source and the measurement method, home prices in Vancouver, Washington rose somewhere between 7% and 12% over the last year.
Trulia reports a 7% increase in local house values, from September 2015 to September 2016. By their estimation, the median sales price in Vancouver is currently around $271,000. Zillow reported a gain of around 12% during the same 12-month period, using their proprietary “Zestimate” formula.
Homes were also selling faster over the summer, compared to the same time last year. According to data published last month by the Regional Multiple Listing Service (RMLS), houses for sale in Clark County, WA sold 25% faster in July 2016 compared to the same time last year.
A recent announcement from the Northwest MLS said that home buyers “in most of the 23 counties served by Northwest MLS can expect to pay more than they would have twelve months ago, with most areas showing double-digit year-over-year price increases.”
New Home Construction Ramping Up
For the past couple of years, there has been a notable imbalance between housing supply and demand in the Vancouver area. There’s currently around a two-month supply of homes for sale in the area, which is well below the five to six months that most economists consider to be “balanced.” Similar conditions have been reported across the river in Portland as well.
But the inventory crunch could ease over the next year or two. A lot of new homes are being built in the area, particularly in Ridgefield just to the north of Vancouver. This will lead to a better balance of supply and demand, and possibly slow home-price appreciation. But as for now, the supply of homes in the Vancouver-area housing market is still relatively low.
Positive Forecast for Vancouver Housing Market in 2017
The general consensus among housing analysts and economists is that home prices in and around Vancouver, Washington will continue rising in 2017. But we could smaller gains compared to those of the last couple of years.
For instance, a team of economists and analysts led by Dr. Svenja Gudell recently predicted that home prices in the area could rise more slowly over the next 12 months than the last.
“Vancouver home values have gone up 12.9% over the past year and Zillow predicts they will rise 5.9% within the next year,” the group stated in August.
Disclaimer: This story contains housing market predictions and forecasts for Vancouver, Washington. Such statements were provided by third parties not associated with our company. We have presented them here as an educational service to our readers.