Real Estate Trends
Home prices have risen nationally three times faster than incomes since the turn of the century, which has made home ownership an impossibility for more Americans than ever before.
In many large cities, home prices have outpaced income. In Miami, for example, incomes have risen 16 percent, while home prices have increased 58 percent since early 1998. New York's Long Island suburbs have seen just a 14 percent rise in incomes as compared to an 81 percent increase in home prices. Boston home prices have gone up 89 percent, while incomes have increased only 22 percent.
Even with a softening in the real estate market looming on the horizon, home sales are still headed for another record year. Here is a view of the Seattle Metro east side market. Each data point compares one month to that same month the previous year.
Not the dip in pricing in all areas except Kirkland / Bridle Trails. While each market is still up nicely when comparing June 2018 to June 2017, the rate of change in our market is clearly slowing.
Year on year, the rate of appreciation in the Seattle east side remains high. By comparing the first chart to the second you can see that the rate of appreciation is showing signs of slowing. Lower appreciation when looking at one month (the top chart) versus a full twelve month (the bottom chart) indicates such a slowing. The Puget Sound real estate market is impacted by many variables so only time will tell if a long term trend is beginning or if this is just a seasonal change similar to what we often see in mid-summer.
Low interest rates are a continuing positive trend of the housing market. Though up from last year, locally rates below 5 percent for 30-year fixed-rate loans are still available. These rates remain the lowest since the 1960s.
Real-estate analysts believe that if the housing market stalls, some areas will continue to grow modestly while other markets gradually go soft, rather than pop. If employment trends and foreign investment in greater Seattle market hold reasonably stable, our market may experience a slowing in the rate in price appreciation and avoid a true decline in prices.
Like the financial markets, the real estate market is impossible to time. So, if you have been thinking about selling, now is a good time to take action. If you have experienced a change that makes buying a house desirable, you can find good homes at reasonable prices within striking distance of the downtown areas and still get a loan at historically low rates.
As always, if I can be of any assistance, just reach out. You can contact me at firstname.lastname@example.org, on my Facebook Page, David Wallace Real Estate Professional@C21Northhomes, or by texting or calling me at 425-829-9565.