Over the last three years, Seattle was at the top of the list for being the fastest growing city in the nation for home value growth. Today, Seattle is ranked as number 12 on the list according to Zillow.
In 2017, Seattle home prices were appreciating at more than 14 percent per year. This year, that percentage dropped to 9 percent. On average, Seattle shows a 5.5 percent appreciation per year. Zillow’s economist, Aaron Terrazas, suggests two large contributing factors: rental rates and affordability. “As rental rates climbed around the city, we had a lot of young adults who had been renting and south to buy over the past two years, putting additional buyers into the mix and thus, driving up home prices” said Terrazas. He also mentioned that there are fewer buyers who are able to afford a home due to the higher home prices. As renters turned into home buyers, the rental markets have slowed as well with Seattle among the top cities showing the greatest slowdown in rent appreciations.
According to Terrazas, “We are still in a seller’s market but perhaps there will be fewer houses with multiple offers; going a little over asking price.”
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