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Seattle, WA: Real Estate Market & Trends 2016

The Seattle real estate market continues to produce remarkable returns for investors and homeowners in 2016. The median home price for Seattle real estate was an astounding $420,500 during the second quarter, compared to the national average of $239,167. Making the Seattle real estate market even more enticing are appreciation rates, which reached epic proportions during the second quarter of 2016. Homes in Seattle appreciated at a one-year rate of 9.1 percent during Q2, nearly double the national average of 4.9 percent, while three-year rates soared to 21.6 percent, compared to 17.8 percent. The Seattle real estate market is running on all cylinders and should continue its hot streak in the second-half of 2016 and beyond.

Seattle, WA Real Estate Market Statistics:

Seattle real estate investments

The Seattle real estate market continues to appreciate at record speed in 2016. Total equity gains have produced mouthwatering results for Seattle real estate investing, as appreciation rates scorch past the national average. Seattle real estate investors and homeowners have enjoyed massive returns in the first-half 2016, and the trend is expected to continue in the second-half. For those considering Seattle real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Seattle, WA housing market one year ago have appreciated, on average, by $41,561. The national average was $14,963 over the same period.
  • Homes purchased in the Seattle, WA housing market three years ago have appreciated, on average, by $92,892. The national average was $46,878 over the same period.
  • Homes purchased in the Seattle, WA housing market five years ago have appreciated, on average, by $155,918. The national average was $82,353 over the same period.
  • Homes purchased in the Seattle, WA housing market seven years ago have appreciated, on average, by $128,167. The national average was $77,054 over the same period.
  • Homes purchased in the Seattle, WA housing market nine years ago have appreciated, on average, by $74,409. The national average was $31,126 over the same period.

As appreciation rates continue to climb to record levels, Seattle real estate is selling at record speed. Seattle real estate sold within 25 days during the month of May, second only to San Francisco, according to the National Association of Realtors. The Seattle real estate market has been a hotbed of investing activity in recent years, and the payoff is ten-fold for investors and homeowners. That said, the trend of Seattle real estate investing should continue in the second-half of 2016 and beyond.

As of July 2016, there are currently 1,316 properties in the Seattle, Washington area in some stage of foreclosure. According to RealtyTrac, the number of Seattle real estate foreclosures in the month of July was 18 percent lower than the previous month and seven percent lower than the same period in 2015. The number of REO properties in Seattle increased 15.8 percent from the previous month, but dropped 26.7 percent from the same time last year.

Seattle, WA: Real Estate Market Summary:

Seattle housing market

  • Current Median Home Price: $420,500
  • 1-Year Appreciation Rate: 9.1%
  • 3-Year Appreciation Rate: 21.6%
  • Unemployment Rate: 4.8%
  • 1-Year Job Growth Rate: 3.6%
  • Population: 652,405
  • Median Household Income: $71,273

Seattle, WA: Real Estate Market (2016) — Q2 Updates:

Seattle real estate investing

Along with thriving home prices and appreciation rates, the Seattle area is also enjoying a healthy economy in 2016. Employment has held up and is on an upward trend, and remains better than the national average. The current unemployment rate is 4.8 percent in Seattle, compared to the national average of 4.9 percent. Furthermore, the one-year job growth rate was 3.6 percent during the second quarter, compared to the rest of the country which saw jobs grow at a rate of 1.9 percent. The economy in Washington is outpacing the rest of the nation, which bodes well for the Seattle real estate market.

Another component that should influence the Seattle housing market in 2016 and beyond is new housing construction. The current level of construction is 32.6 percent above the long-term average, while single-family housing permits in Seattle were at 12.4 percent during the second quarter, compared to the national average of 10.6 percent. Construction is on the rise relative to last year, suggesting that the local inventory has stabilized.

With the Seattle real estate market booming in the first-half of 2016, home affordability has taken a major hit. The Seattle housing market is now one of the more expensive in the nation, as rental prices in Seattle have experienced an 8.4 percent increase over the past year. The monthly rental cost has increased by nearly $500 for the last four years. Surprisingly, the Seattle real estate market remains one of the top 10 purchase markets for millennial homebuyers, according to a recent NAR study. Although Seattle has some of the highest rents in the country, home affordability in the second quarter of 2016 was below the national average. Believe it or not, the Seattle real estate market is one of the more affordable markets in the nation.

Moving forward, the Seattle real estate market is expected to experience positive growth in the second-half of 2016. The National Association of Realtors has forecasted higher price growth in Washington than in the U.S. in the next 12 months, with price expectations for Washington real estate anticipated to grow by 6.3 percent in the second-half, compared to the national average of 3.6 percent. That said, the Seattle real estate market should continue its breakout year in 2016 and beyond.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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