With the continued low inventory around Seattle and the Greater Eastside, how do our regional housing sales continue to grow? In his recently released 3rd quarter report, Windermere Real Estate’s chief economist, Matthew Gardner, pointed out that there has been an uptick in the number of 1st time home buyers purchasing homes. Svenja Gudell, Zillow’s chief economist, stated in her 3rd quarter report that during 2016 almost half of all U.S. buyers were first time home buyers.
However, we’re also seeing the prices of starter homes skyrocket in our area. The recently released S&P Case-Shiller Home Price Index pinpointed that the Seattle area has the 2nd fastest-rising home prices in the nation. In fact, since 2012 the starter home prices have jumped 75% compared the overall housing market increases at 59% for the same time period. Millennial home buyers are ready to purchase their first homes, but starter homes are not what they used to be.
Additionally, homes in the luxury price points are seeing a slowing in their price gain in our region. According to the Case-Shiller Home Price Index report Seattle area luxury homes had a price gain of 10.9%, compared to the least expensive homes that experienced a 12.9% gain during the same report time period.
With so many differing factors working to shape our regional housing market conditions, it can be confusing to keep track of what is going on in your neighborhood, or how to make comparisons between communities that you may want to call home. I work diligently to maintain a pulse on the workings of our real estate market, to be an educated resource for you to utilize. Please give me a call with any questions you may have regarding home pricing, real estate investment, or making your first home purchase.