5 Seattle Housing Market Predictions for 2018
Housing Market Predictions for 2018
2017 was QUITE the ride for Seattle area real estate. But, what's to come? Chris Lord of Caliber Home Loans and I go over 5 predictions for the Seattle housing market in 2018.
1. Housing prices will still rise
- Zillow predicts a ~5% appreciation in home prices this year- but, they did predict the same last year and we experienced more than double that.
- Our healthy economy and influx of new residents makes the amount of buyers more than the amount of inventory.
- Looking at stats from the MLS indicates that our buyer pool has essentially DOUBLED while the amount of inventory we have has essentially been cut into THIRDS, relative to a "stable" market, historically.
2. Interest rates will rise
- Interest rates to grow and so will appreciation - this will affect your purchasing power if you wait.
- 3 rate hikes are expected this year - but interest rates will continue to remain below 4%.
3. millennials/first time home buyers will lead the pack
- We have a great economy for the millennial working generation. While they've been renting for the past couple of years, this has incubated them into wanting to purchase. They're wanting the pride of ownership, they want more space, they're getting married, etc.
- Millennials have led the pack for 4 years now for home purchasers and we should expect to continue to see this in 2018.
4. rents will continue to rise
- Since you're reading this in January- you may think "rents are actually flattening out and dropping." Well, they did, but that's short term due to the natural season of the real estate market being slower this time of year.
- We still have an abundance of people that want to live here, do live here, which drives the rent prices up.
- Yes, there's a lot of construction going on for new construction apartments, but they're not done yet.
- Zillow predicts a 3.5% increase in rent.
5. more condos will be announced
- As I mentioned above, these renters are being incubated into owning. But the problem is that there's not many affordable homes available.
- People are drawn to the price point, which we don't have a lot of.
- Seattle is thirsty for entry level ownership and I think some of the developers will take note and notice that the lack of affordable inventory isn't sustainable, therefore producing condos.
- More on this topic later.
Are you thinking about starting your home buying journey? Reach out, we can help you.
Austin Schneider, Realogics Sotheby's International Realty | firstname.lastname@example.org
Chris Lord, Caliber Home Loans | email@example.com