Seattle is the Hottest Housing Market in the U.S. – What That Means for Homebuyers
One would have to live under a rock to not know that housing prices have been skyrocketing in certain cities across the nation over recent years. San Francisco and New York markets have seen mortgages and rents rising to unaffordable heights for many long term residents. However, other formerly hot cities have seen a slowing trend toward the end of 2016 and three of the five largest cities in the US will have lower than average growth into 2017.
There is no need for undue concern, since on average, nationwide home values are still expected to rise 3 percent in 2017. While some once hot markets have cooled a bit, Seattle is still expected to be a market to take advantage of and one that will hold strong even if markets across the nation should see a downturn in the future. Seattle has long been one of the hottest housing markets in the US for quite a while, now and 2017 projections for the nation’s hot housing markets will see Seattle right up there in 2nd place behind Nashville.
For home buyers in the Seattle area, this can indicate that any potential property you purchase soon will still see some value gains and remain a solid investment.
Per Zillow’s forecasts, home value appreciation for the greater Seattle area is 5.6%. Factors contributing to a rising market are the projected income growth of 1% and low unemployment rate of only 4.4%. While Nashville’s projected income growth is 1.1% and lower unemployment of 4%.
Following is Zillow’s top 10 housing market list for 2017 and projected growth.
1. Nashville- 4.3%
3.Provo, Utah- 4.3%
4. Orlando, Florida- 5.7%
5.Salt Lake City- 4.3%
6. Portland, Oregon- 5.2%
7. Knoxville, Tennessee- 4.4%
8. Ogden, Utah- 4.7%
10. Sacramento- 4.8%
What are the factors contributing to a strong market and how do those come to play for Seattle? Demographics that influence housing prices in any region are population composition, regional economy, unemployment rates, projected job growth, city livability score, and of course interest rates.
The strong and historically growing Puget Sound economy and projected growth has been due to incredible job growth and people following jobs. Continued growth in the technology and biotech industries have contributed to 1.6 percent growth rate, which is .5 percent faster than the rest of the nation. Between 2015 and 2015, 234,000 new jobs were added to the region. Along with those new jobs, workers can expect a higher than average hourly rate compared to the rest of the nation, according to the Bureau of Labor and Statistics.
At the same time, per capita income in Seattle rose 22.6 percent while unemployment for the region dropped from 9.6 percent to 4.5 percent.
Projections are that things are changing, with a deceleration from 3.2 percent down to 1.5 percent in 2017. That is no reason for panic, as we can still count on solid housing statistics that indicate Seattle is a great area for real estate investors and homeowners alike.
Our strong and growing job sector is due to giants such as Boeing, Amazon, Microsoft, and other tech companies. These and more have been some of the biggest contributors to a robust economy, with the tech industry showing no slowdown.
So even with a slight housing slowdown expected, Seattle’s market is still a robust one, promising continued gains, solid school districts to choose from, and a great region for quality of life as well as a good bet for your real estate investment opportunities.
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