Affordability is the buzzword this quarter as inventory continues to be extremely tight and prices escalate faster than wages can keep up.
Monthly housing costs increased 7% in Q1 over those in Q4 and 21% over Q1 of 2015. Wow! With wage growth in the 3-5% range it’s easy to see why affordability is a topic of discussion.
Sellers commanded the market in the first quarter with record low levels of inventory to meet demand.
The draw to our region continues to be strong employment growth—especially in the tech sector—that makes paying higher costs worth the sacrifice for many local residents who land their dream job.
Rent increases, having exceeded home appreciation in the Seattle area for much of the past decade, are finally showing signs of slowing as 36,000 new apartments are slated to come online.
Seattle residential homes benefited from significant year-over-year appreciation – with Q1 2016 prices up 21.7% over Q1 of last year.
Sustainability is a word that should be on everyone’s mind. When housing costs get out of line with wages a correction is usually just around the corner.
Click here for the full report and to see how prices have changed in your neighborhood!
© Copyright 2016, Windermere Real Estate/Mercer Island. Statistics provided by the Northwest Multiple Listing service and deemed accurate but not guaranteed.