November 2017 was Seattle’s 15th month leading the nation on the S&P/Case-Shiller’s Home Price Index, the nation’s pre-eminent measure of single-family home prices.
Having briefly subsided from September into October, residential prices in Seattle resumed their upward trek, with the index turning positive by 0.18% in November. The official report from Case Shiller noted that “Seattle, Las Vegas, and San Francisco reported the highest year-over-year gains among the 20 cities. In November, Seattle led the way with a 12.7% year-over-year price increase, followed by Las Vegas with a 10.6% increase, and San Francisco with a 9.1% increase.”
Realogics Sotheby’s International Realty presents a look at the housing market trends for the fourth quarter of 2017, from the shores of Bainbridge Island’s waterfront homes and in-city living opportunities to the Eastside’s most distinguished residences.
The lack of new construction closings in 2017 combined with increasing demand for home ownership drove the median home price of downtown Seattle condominiums to $625,000, an increase of $100,000 or 19-percent for the year. That’s significantly higher than the broader perspective offered by S&P/Case-Shiller Home Price Index, which reported the tri-county metro area spiked by 12.7-percent as of October 2017, leading the country in property value appreciation all year. It should be noted that the index doesn’t include new construction or resale properties.
S&P/Case-Shiller’s Home Price Index for October 2017 showed the Seattle Metropolitan Area as remaining 12.7 percent higher than twelve months ago, and continuing to lead all Pacific Coast gateway cities as well as cities across the nation. However, this was the second straight month in which the Seattle index declined on a monthly basis, although by a shallower percentage (-0.07%) than the -0.28% seen in September. October’s decline appears to confirm the end of the historic 31-month streak of continuous price growth in the Puget Sound region, even while it retains its nationwide lead for a 14th consecutive month.
The condominium shortage is officially worse than it’s ever been in King County, as a lack of new construction and increasing demand continue in Seattle and the surrounding areas. As a recent Seattle Times article outlines, condo prices are rising even faster than single-family homes, with little relief in sight as developers continue to build apartments for rent rather than condominiums for sale. Looking at data from the past two decades, King County has averaged roughly 2,000 active condos on the market this time of year but now “it’s down to about 350, a record low.” Conditions have pushed the average sales price of a condominium up to just over $450,000, an increase of approximately $150,000 over three years.
The lack of available condominiums in downtown Seattle continues, especially at affordable price points. Currently, there are just 7 resale homes listed for sale on the NWMLS priced below $700,000, which is now the new median home price for resales after increasing a staggering 19% in November 2017 compared to the prior year. Though market conditions may seem daunting to potential buyers, market pundits say unit reservations and presales can offer much needed relief for those willing to plan ahead.
Written by William Hillis, Research Editor, Realogics Sotheby’s International Realty
Upon last month’s release of the CoreLogic Case Shiller Home Price Indices for August 2017, Realogics Sotheby’s International Realty predicted,
“Should the trend since April continue on the back side of the peak home-buying season, it is possible that Seattle’s monthly home price trend could actually turn negative.”
This in fact is exactly what happened, with the Seattle index slipping by 0.28 percent monthly in September. That is not a steep slide, but to put it into context, the Seattle index has been positive for 31 consecutive months. Furthermore, Seattle home prices continue to lead the nation on a year-over-year basis, now for 13 months straight. As reported in the S&P Dow Jones press release, “Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. In September, Seattle led the way with a 12.9 percent year-over-year price increase, followed by Las Vegas with a 9.0 percent increase, and San Diego with an 8.2 percent increase.”
Written by William Hillis, Research Editor & Broker, RSIR
Monthly price growth has been slowing, but not among Seattle condos
We might be seeing the equivalent of an end zone dance for Puget Sound home prices. Yet according to the August results of the CoreLogic Case Shiller index, continued slackening in the monthly rate of growth is far from cutting Seattle’s year-long lead nationwide, and Seattle condominium prices have sustained their upward momentum.
Realogics Sotheby’s International Realty (RSIR) presents a look at the housing market trends for the third quarter of 2017, from the shores of Bainbridge Island’s waterfront homes and in-city living opportunities to the Eastside’s most distinguished residences.
According to NWMLS data for September, downtown Seattle values are skyrocketing as the median home price for in-city resale condominiums increased a staggering 35-percent year-over-year. The sharp increase in value is indicative of Seattle’s continued struggle with population growth, rising real estate prices for both renters and buyers, and a supply and demand imbalance with little relief in sight.