Seattle Leads Nation In Home Prices For 16 Months In A Row
New data out of the Seattle Times on home prices. The Case-Schiller home price index was released today and the Times is reporting that Seattle area leads the nation in home prices for the 16th month in a row. It is the longest streak in the nation, only second to the dot-com run in San Francisco.
According to the article:
Nationally, prices are up 6.3 percent, the most in three and a half years and almost five times more than the country’s historical average.
While in Seattle:
The median house price in Seattle just hit a record $757,000, and on the Eastside is hovering at an all-time high of $938,000, according to the Northwest Multiple Listing Service.
Here is a look at the chart for the Median Sales Price in Seattle:
The median sales price in Seattle is up 96% since the low in March of 2012. Take a look at the list of the top 5 major US cities leading the nation in home price growth (compared to a year ago)
1. Seattle +12.7 percent
2. Las Vegas +11.1 percent
3. San Francisco +9.2 percent
4. Los Angeles +7.5 percent
5. Denver, San Diego (tie) +7.4 percent
To add insult to injury, the inventory of homes available for sale are at an 18 year low. All the while, there are more qualified buyers looking to purchase. This is what is causing the widening affordability gap. Just last week we touched on how legislation to encourage and increase more home development never made it to the house floor in Olympia – the legislation was a proposal to modify the Washington Condominium Act.
Seattle needs more homes….period. The longer this run continues, prices will continue to run higher and there will be less and less affordability. Just last month, I reported that 63% of Downtown Seattle condominiums were priced over $1,000,000. When looking at units that cost less than $500,000, we are severely limited in comparison to other major US cities.
This is an updated graphic we posted in October of last year. Right now, in Downtown Seattle, there is just one unit priced under $500,000. Meanwhile, in Manhattan, there are 469 units under $500,000.