To Seattle and Beyond: Housing Market Breaks Records in Every Direction
City dwellers have long known that their housing prices — as well as the cost of living, in general — is higher than that of the suburbs. In the last decade, as Seattle grew into a tech hub and attracted thousands of jobs to the region, and it's become more expensive and challenging to find an affordable place to live in the heart of the city.
Now, however, Seattle residents are finding that the same trends are taking place in the surrounding communities. In fact, a recent Seattle Times article reports that you'll be hard-pressed to find an affordable home within an hour of Seattle, as the housing market continues to explode into one of the most competitive markets ever seen.
Record-breaking home sales prices
It's not your imagination. This is a housing market unlike Seattle has ever seen before. Some of the most recent data regarding home sales in Seattle and the Puget Sound region shows that records are being shattered month after month:
- Most buyers who are planning to buy a home in Seattle should wrap their heads around a $1 million price tag — an average price not seen before in the city. The median sales price in the month of May was $729,000, showing an increase of more than $7,000 from the previous month!
- In the last year, home prices in Southeast King County have increased by more than 10 percent. Median sales prices in Southeast King County are about $420,000.
- Southwest King County saw the highest jump in home prices, with a 17.7 percent increase from May 2016 to May 2017. The median sales price of a home in this region is $400,000.
- Eastside real estate is some of the priciest in the area, with a median sales price of about $875,000. That's an increase of more than 15 percent in the last year! Cross the lake to Bellevue and you'll see even more of the same.
The Seattle housing market isn't just making the headlines locally, it has quickly become national news. During the last 7 months, Seattle has had the most significant housing price increases in the entire country. In addition to the increasing property values, the Seattle real estate market also has become known for its low inventory levels. There are many buyers trying to get property in the city and throughout the surrounding suburbs, but not enough homes listed on the market for everyone. That's leading to circumstances in which bidding wars are the norm and home buyers are more likely to get a declined offer than an accepted one.
What it Means for Buyers & Sellers
This may seem daunting, but it's not necessarily bad news for home buyers and those who are interested in investing in the Seattle real estate market. Real estate experts continue to assure buyers and sellers that this is not a housing market bubble, similar to the one seen before the recession began in earnest 10 years ago. Rather, they assert that it's a sign that Seattle and the surrounding region is continuously growing. More employers are basing their operations in this region, bringing with them an influx of jobs and driving more new residents to the area.
Buyers and sellers can reasonably expect this trend of rising home values and increased competition to continue in the local real estate market for at least the next year, but that also means that they can expect to enjoy the fruits of their labors in this market for the years to come. Demand is likely not going to decrease, and home values are anticipated to continue to rise in the city and beyond.
In Seattle, you're not going to be dipping your toes into the market. Rather, this summer you'll have to be prepared to do a cannon ball into this intense selling season. With the right real estate team on your side, you'll be able to create the powerful offer that is necessary to land your dream home. For more information on the current market conditions in King County and the surrounding area, contact us today.