Seattle has defended its title as the nation’s hottest housing market for the twelfth month in a row. According to the latest Case-Shiller report, home prices have rise 13.2% from August 2016 to August 2017; more than two times the national rate of 6.1 percent. No other metro area broke 10 percent. This is the fifth longest streak in the nation since 2000 and the longest since Phoenix’s 13-month reign from 2012 to 2013. Las Vegas replaces Portland at number two with a year-over-year gain of 8.6 percent, nearly 5 percentage points less than Seattle. San Diego rounds out the top three with a 7.8 percent increase.
Home prices are also continuing to outpace wage growth. We’re seeing the biggest spike in low- and middle-tier homes, which is deeply felt by anyone not earning a high salary. The tension will continue to escalate due to newcomers being drawn to the region by lucrative job opportunities.
According to NWMLS, between January and October of this year, two-thirds of the single-family homes across King County have sold for half a million dollars or more. In comparison, two years ago, less than half of the homes sold topped $500,000.
Inventory continues to remain below the normal 4-to-6 month supply that is a typical an indicator of a balanced market. Overall, there is only 1.5 months of supply of single family homes and condos combined. Meanwhile, King County has less than one month.