With high home prices, low inventory and heated bidding wars, Seattle is the new San Francisco.
In the metro Seattle area, home-sale prices rose 9.5% from 2014 to 2015, putting the median home value at $385,300, according to the National Association of Realtors. That’s below the limit for government-backed loans for the area, which currently is $540,500. But Seattle buyers who want a dream home in a desirable neighborhood will probabl0y need a jumbo mortgage.
Seattle still lags behind San Francisco, where the median home value is $781,600, but buyers in both cities—many in the tech industry—are competing for a limited pool of properties.
NW Dominates Home Price Increases – Core Logic
Western states dominate the list of states seeing the largest year-over-year increases in sales prices. But there is a notable exception — California.
Instead, the state of Washington is posting the largest gains nationwide. The cost of buying a single-family home there in February skyrocketed 12.4 percent from last year, according to CoreLogic’s newly released home price report.
That is nearly double the percentage home prices have risen on a national scale in that time. Single-family home prices nationwide have jumped 6.8 percent year-over-year in February compared to a year ago. CoreLogic researchers project that home price appreciation will continue, forecasting another 5.2 percent climb over the next year.
“Home prices continue to rise across the U.S. with every state posting year-over-year gains during the last 12 months,” says Anand Nallathambi, president and CEO of CoreLogic. “Improved economic conditions and tight inventories continue to drive exceptionally strong gains in many markets, especially for homes priced below $500,000.”
The following states saw the largest year-over-year increases in single-family homes in February:
- Washington: 12.4% year-over-year increase
- Colorado: +10.5%
- Florida: +10.2%
- Oregon: +9.3%
- Nevada: +8.6%
- Idaho: +8.4%
On the other hand, the states that saw the smallest year-over-year increases in home prices were:
- Wyoming: 0.4%
- Louisiana: 0.5%
- West Virginia: 0.5%
- New Jersey: 1.6%
- Maryland: 2.2%
- Virginia: 2.2%
- Maine: 2.8%
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