The 2017 Market Report & Upcoming Trends
I am thrilled to share Realogics Sotheby’s International Realty’s review of 2017 market activity in the Puget Sound. William Hillis, our acclaimed Research Editor and Data Analyst, has compiled a year-over-year performance review of eight key counties and 29 regional markets. In addition to market insights, this year’s report includes a special timeline of Seattle’s performance on the S&P/CoreLogic Case-Shiller Home Price Index, the effects of Chinese capital controls and Canada’s restrictions on foreign buyers, the “Condominium Conundrum,” and more. I offer the following key insights, as well as trends to watch, as a conversation starter so we may discuss the implication for homes where you live.
King County Statistics
There were $20.37 billion in single-family home sales in King County in 2017 – 14.9 percent more than the $17.73 billion sold in 2016 – at a median price of $630,000. The median price grew at a lightly lesser rate than selling volume, up by 14.6 percent from the 2016 price of $550,000. There was little difference in the number of transactions in 2017: just 0.7 percent more, to 27,379 from 27,182 in 2016. The slow growth was attributable to a lack of inventory, which has been tightening since last year. The median cumulative days on market in King County reached seven in the second quarter, and never rose higher than ten.
Five Trends for 2018:
1. The Condo Comeback: Condominium launches will grow with more presale opportunities now that condominium values are on the rise. New residents to Seattle are arriving from larger cities around the country, and are accustomed to high density urban environments with mature transit systems and stellar amenities.
2. Interest Rates are on the Rise: Interest rates are expected to increase at least two more times in the coming year.
3. Vancouver B.C. Foils Foreign Buyers: In August 2016, Vancouver B.C. imposed a 15-percent sales tax on foreign buyers, which they increased to 20-percent in February of this year.
4. Tech Industry: Though Amazon’s announcement of HQ2 had some worried, they are showing no signs of slowing down their Emerald City presence as they continue to expand their footprint.
5. Downsizers and Empty Nesters: The familiar story of the Baby Boomer will convert into downsizing as some take advantage of condominium living, others move into assisted living, and still more move to exurban towns with reliable local healthcare and leisure amenities.
Read the full digital publication below or contact me for a complimentary print copy.