Let’s start the new year with a report we’ve heard before, and will probably keep hearing for a while - with minor tweaks. Seattle’s house prices are growing faster than the rest of the nation at 10.7 percent annually.
An analysis of the Case-Shiller report by Seattle Bubble confirms that we’re number one, again. For most of 2016 we played number two to Portland’s number one. We both dipped a bit at the end of the year, but our southern neighbor dipped more. Both cities are growing at almost twice the national average of 5.6 percent.
Measured against our peak before the bubble burst about nine years ago, we’re finally seeing higher prices. Our stellar price growth has only brought us to 6.6 percent above where we were then. Take that as encouragement that more people who bought then will be willing to sell now. Or, take that as a caution that bubbles happen, and so do busts.
We do know, however, that current demand exceeds current supply, that bidding wars continue to happen, the local economy is strong, and that the region remains attractive. All good reasons to expect continued growth for a while. Whether we remain #1, that’s something buyers may not applaud while sellers cheer - until they have to buy.