The respite is over; Seattle home prices regain their blistering pace upward
Written by William Hillis, Research Editor, Realogics Sotheby’s International Realty
While Seattle’s lead over other Pacific Coast gateway cities slipped slightly in September and October 2017, by December, the city had recovered its monthly lead over home prices in San Francisco and San Diego. The Puget Sound region ends the year with a record 16th consecutive month leading the nation on the S&P CoreLogic Case-Shiller Home Price Index.
The S&P Dow Jones official report noted that “Seattle, Las Vegas, and San Francisco reported the highest year-over-year gains among the 20 cities” in their broader index. “In December, Seattle led the way with a 12.7 percent year-over-year price increase, followed by Las Vegas with an 11.1 percent increase, and San Francisco with a 9.2 percent increase.” In the same report, it was observed that “The National Index, which reached its low point in 2012, is up 38 percent in six years after adjusting for inflation, a real annual gain of 5.3 percent. The National Index’s average annual real gain from 1976 to 2017 was 1.3 percent. Even considering the recovery from the financial crisis, we are experiencing a boom in home prices.”
The index, which regionally is computing according to single-family home selling prices in King, Pierce, and Snohomish Counties, had flattened out in the fall of 2017, diminishing by 0.28 percent in September and 0.07 percent in October. The rebound began in November; by December, Seattle’s home prices were advancing again by 0.57 percent that month—a rate that compounds to seven percent annually. Meanwhile, monthly rates declined to 0.53 percent in San Francisco, and stood at 0.22 percent in San Diego.
For Seattle’s comparative performance on the Case-Shiller Index, see the chart below; and for more details, download the S&P Dow Jones Case-Shiller summary report.
For details on the implications for homes in your neighborhood, contact a local RSIR broker for their latest analysis and stay tuned for your 2017 Year in Review and 2018 Market Forecast expected by March 2018.