Seattle once again leads the country with the highest year-over-year home price increase, extending its streak to 19 months. In the latest S&P CoreLogic Case-Shiller Home Price Index, which covers March 2018, Seattle recorded a 13 percent price increase from the previous March. Seattle’s 19 month streak is now one behind San Francisco’s 20 month run during the dot-com boom from 1999 to 2001.
Following behind Seattle were Las Vegas with a 12.4 percent increase, and San Francisco with an 11.3 percent increase, the only other cities to record double digit gains. Nationally, home prices increased for the 71st straight month, rising 6.5 percent.
The current job market continues to apply pressure to the housing market as inventory has not been able to keep up with the increased demand. The latest NWMLS Market Update reported the number of active listings in March was down nearly 10 percent from the year before. Area-wide inventory was at 1.2 months, with the three Puget Sound counties (King, Kitsap, and Snohomish) all reporting less than a month of inventory. Condo inventory also remained low, at 0.87 months.
Meanwhile, the inventory level nationally currently sits at 3.8 months, still below the 4 to 6 months level used as a measurement of a balanced market. According to the National Association of Realtors the number of sales listings has dropped 6.3 percent over the past year. As long as the demand is strong enough to support higher home prices, and inventory remains low, home prices they are likely to continue rising.