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The price of homes in Washington state have exploded in recent years, as has demand. But what will 2021 bring? How will the housing market in Washington fare this year?
According to forecasts, the real estate market in Washington State will continue to be relatively strong throughout 2021. Zillow predicts that prices in Washington state will increase 11.3% over the next 12 months.
The market in Washington state is currently very hot, and the local economy is strong with growing populations. Average markets have no more than two month’s supply of homes, and sometimes even less than one month supply.
Seattle has long been known as the hottest market in Washington state and among the hottest in the entire country. And it still is. In fact, home prices have soared 10.9% over the past 12 months, and they’re expected to continue rising into 2021.
But Spokane will be among the hottest housing markets in the state of Washington. Home prices have spiked 16.5% over the past year and are expected to rise another 12.2% over the next 12 months. Spokane’s real estate market is also very hot right now, much like the statewide market.
Many buyers are setting their sights on Spokane, especially considering how much more affordable home prices are in this center compared to the likes of Seattle. In fact, Spokane is even seeing plenty of bidding wars, and RedFin reports that most listings in Spokane are getting multiple offers and are selling in as little as 6 days after being listed. And this heat is expected to continue in the area.
That last sentence says it all. The current imbalance between supply and demand has caused significant and steady home-price gains over the last couple of years. Due to population growth and economic improvements, there is plenty of demand within housing markets across Washington (and especially in the Seattle area). But there’s not enough supply to meet it.
There just aren’t enough homes on the market for the amount of buyers seeking them. And this is putting upward pressure on house values statewide. And these trends are likely to continue throughout 2021.
According to the real estate data company Zillow, the median home value for Washington rose by around 12.1% over the past year to the current median price of $458,313.
Historically, going back several decades, house prices in the U.S. tend to rise by around 3% to 4% annually. So the gains seen in Washington State over the last year could certainly be called “above-average.” Zillow’s economists expect price growth to continue at the same pace over the coming months.
Related: How much is my home worth?
Inventory is the real story in this market. Housing supply is limited in most cities across the state, particularly in the King County area where there is barely a one month supply in the county.
A “balanced” real estate market has around a five- to six-month supply of homes for sale. But most markets across Washington State don’t have anywhere near that amount, but instead are hovering somewhere around the 2-month supply mark.
Are you looking to apply for a mortgage to buy a home in Washington State? Sammamish Mortgage is here to help. We have served home buyers and homeowners across the state since 1992. We are a family-owned company based in Bellevue, WA, and provide mortgage programs for borrowers across Washington, Oregon, Idaho, and Colorado. Please contact us if you have questions about getting a mortgage loan in Washington.
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