As the local economy continues to boom, the housing market continues to thrive. Seattle is now tied for having the second-longest streak as the hottest housing market in the country. With 20 consecutive months atop the nation, Seattle isn’t showing signs of slowing down as homes within the area continue to have high demand.
The S&P Case-Shiller Corelogic Index has been tracking home prices for the last 27 years. To date, the longest run as the hottest housing market was 23 months and occurred in Portland. Seattle’s current 20-month lead is tied in second with San Francisco, a market that is known to be competitive. Seattle Times notes that our city’s lead is in part due to the rapid growth of home prices. With a 13.1% year-over-year increase, Seattle’s home prices are growing at a pace that is nearly 3 times that of the rest of the country.
The tech boom has caused a spike in prices for homes within the city, especially for those that had lower values. Home prices for those considered to be more economical rose 16% in the last year, while luxury homes increased in value for 12%. This has caused many to seek housing outside the city limits, widening the region impacted by competitive buyers and increasing home prices further.
While the market may seem overwhelming at a glance, there is hope on the horizon for homebuyers. GeekWire recently reported about the fast-paced market, reminding readers that inventory has continued to increase. This increase in availability may not cause prices to decrease, but it will definitely alleviate the rate at which values have been appreciating.
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