WASHINGTON - As the Washington real estate market continues to grow and change, the outlook is for increased prices and decreased home inventory. This is great news for buyers and sellers alike, but it also means that the cost of purchasing a home in Washington, DC, will continue to rise. In July, the housing market in Seattle saw an increase of 1.1213 new listings, and home values are expected to rise 5.7% between July 2022 and July 2023. In Mount Vernon, WA, home values are expected to increase by 3.1% in the same time frame.
Seattle Housing Market Saw 1,1213 New Listings
The Seattle housing market saw 1,1213 new listings last year, more than any other month since 2010. The increase is a sign of increased demand in the housing market. The Seattle real estate market is experiencing record-low inventories, and the number of homes for sale is increasing rapidly. This has prompted frenzied bidding wars and offers far more than the asking prices. This strong demand has fueled a boom in home sales. The year-over-year pace is now at the highest level in four decades.
The market is also more buyer-friendly than it was 12 months ago, and motivated sellers will likely work with buyers to make deals. Some sellers may even be willing to offer closing cost contributions. With more houses for sale, the market could become less stressful. This could lead to a decline in "buyer fatigue" in the Seattle housing market.
This strong demand for homes in Seattle will continue to drive prices upward in 2022 and 2023. However, some experts warn that prices in some areas will begin to cool off after the housing bubble. This could slow the recovery. In addition, higher interest rates could make more expensive homes in the Puget Sound region unaffordable for many buyers. In turn, this could push buyers to look for modest single-family homes in more affordable neighborhoods.
Because of the tight inventory levels, the Seattle housing market is likely to remain a seller's market. Last year, there were only 0.3 months of inventory in the Seattle market. This is significantly below the minimum number needed for buyers to purchase a home.
Longview, Wa Home Values Are Forecasted To Rise 5.7% Between July 2022 To July 2023
While the US housing market is currently experiencing record low mortgage rates, the supply of new homes is limited. Building lot availability is at multi-decade lows. And the construction industry is experiencing a labor shortage, with more than 330,000 job openings. Consequently, while luxury home sales continue to flourish, lower-priced homes are struggling. Until more inventory is available, home prices will remain high.
The first half of the year will see moderate growth in home prices. New construction is anticipated to slow the growth in the second half, as will the number of pandemic-related buyers. However, this impact will not be felt until 2022.
Although the housing market is facing a tough time right now, the outlook for the year ahead is still positive. Home prices will continue to rise as the largest cohort of Millennials begin to form households, and the demand for housing is set to outstrip supply. This will continue to drive up home prices, and rents are expected to rise. Home builders are confident that 2022 will bring higher prices. However, a shortage of construction workers and serviceable lots will hamper the production of new homes. This will offset the positive effects of the low resale home supply.
While the US economy is slowing down, wages are increasing, keeping demand for homes high. Meanwhile, the government's stimulus money will probably not support the lower prices of homes.
Mount Vernon, Wa Home Values Are Forecasted To Rise 3.1% Between July 2022 To July 2023
According to the most recent data from Zillow, home values in Mount Vernon, Washington, are expected to increase by 3.1% in the next seven years. These projections are based on the median home value in the area as of February 2022. This number is not to be confused with the median home price based on demand and supply.
In the Mount Vernon housing market, there are 143 active listings. The number of active listings increased by 5.9% between July 2022 and August 2022. These homes were listed for an average of 20 days, with the median listing price of $512,000 in August 2022. In the same period, the median list price for a one-bedroom property increased by 17.9%; meanwhile, the median list price for a three-bedroom home rose by 18.2%. The cost of a five-bedroom home increased by 12.9%.
Two regional airports serve the Mount Vernon metro area. The Skagit Regional Airport serves the general aviation needs of the region and is served by two cargo airlines. The nearest commercial airport, Bellingham International Airport, is 25 miles to the north. Interstate 5 is an important roadway in the area, connecting the Mount Vernon area to numerous major cities and points north and south. State Route 9 runs parallel to Interstate 5 and links Mount Vernon with the city of Arlington and Snohomish to the south and Sedro-Woolley to the north.
According to Zillow, the median home value in the Washington metro area is $624,275. This number is based on a seasonally adjusted sample of homes in the middle price tier. According to Zillow, home values in Washington have increased by 18.2% in the past year and 44.7% in the past two years. Zillow also predicts that there will be no home value decline in Washington metro areas in 2023. This indicates a market that is shifting in favor of sellers. Rising interest rates, however, may dampen the demand for homes.