We’re #1! at least in terms of housing markets in the U.S. #2 happens to be Portland. There must be something about the upper left corner of the lower 48. Maybe it’s our distance from the other Washington.
The Case-Shiller National Index is out and, in terms of your-over-year appreciation, Seattle’s housing index is up 10.7 percent with Portland right behind at 10.3 percent. No other city in the index hit double digits. The next closest was Denver at 8.3 percent, two full points below Portland. The national average was 5.6 percent, which was dragged up a bit by our three hot markets. At least no market was negative. The lowest being New York City at 1.7 percent.
As assets, housing is beating inflation and interest rates, so homes aren’t just for living in, again. Some trends will moderate that effect. Mortgage rates are up. The Fed has raised rates again. Some economists are worried about wage growth triggering inflation, while at the same time employees are worried there isn’t enough wage growth to keep up with the price of housing, healthcare, and education.
Seattle has been doing so well because of our region’s economy. People are moving in faster than housing is being built. Demand is greater than supply, and prices rise. Seattle is also seeing growth from the previously hot markets that have topped out, like the Bay Area. We still look affordable to them, and may for a long while.
If you’re a seller, cheer the rise. If you’re a buyer, good luck. If you’re an agent, we hope you aren’t working too hard. If you’re selling and then buying in the area, well, life probably isn’t dull.