The S&P Case-Shiller Home Price Index was just released earlier this week ranking the major metropolitan areas across the U.S. by the fastest-rising home prices. While we have not muscled out Portland for the No. 1 spot on the list, we came in a close second having narrowed the gap significantly.
According to an analysis by The Seattle Times, Seattle-area home prices are now rising at their swiftest pace in 2.5 years. While we missed out on taking over Portland for the top spot on the Case-Shiller index, Seattle did increase its lead over third-place Denver where prices only rose 8.8 percent over last year.
Portland, having led the Case-Shiller index all year, had the fastest-rising home prices up 11.7 percent over a year ago. In Seattle, home prices were up 11.4 percent over 2015. Both Pacific Northwest cities saw home costs increase at more than twice the national rate of 5.3 percent. By this point, the “record-high home price” headlines are trite. So what makes this time so important?
Well, for starters, this is the eighth straight month of double-digit growth. That in itself is something fairly noteworthy. Additionally, as The Seattle Times states, homes across all price levels are getting more expensive, but “the biggest increase was in the cheapest set of homes” which were up 12.4 percent. The smallest jump was for luxury homes, up 10.9 percent.
Home prices have been soaring consistently for more than four years having jumped 59 percent since 2012. Starter homes have seen prices jump 75 percent in that time frame. Our local millennials are ready to take advantage of the low mortgage rates, but the starter home just is not what it used to be.
What does this mean for the Eastside?
We want to take a look at Windermere Real Estate’s latest housing market update where we reported the median home sale price at $750,000. That is a solid 10 percent increase over the home prices we saw last year. By comparison, the median sale price of a single-family home was $630,000 last month.
First-time buyers are faced with these skyrocketing home prices, and even though other housing market factors are playing in their favor, it can be an intimidating time to jump into the real estate world. Make sure you team up with a Windermere broker who can help you navigate the real estate market and can turn your homeownership dreams into a reality.
Read more from our source, The Seattle Times.