Trends push more to purchasing in Seattle
In August, inflation in the Seattle area remained above the national average, according to the Bureau of Labor Statistics. This could be why rent prices have risen by 5.7 percent compared with last year. According to The Seattle Times, the average cost of an apartment within 10 miles of the city is $1,517. Real estate in Seattle has considerably plateaued since the housing burst, although the market has experienced several small ups and downs.
According to My North Seattle, the monthly median sale price of distressed properties has been on a downward trend. For both bank-owned and short-sale condos, prices are going downward within a zone. The “zone” means that even though prices are going up and down, the highest points and lowest points are getting lower, showing an obvious trend.
Non-distressed properties have stuck around the same general median sale price since February 2009. Similarly, prices have increased and decreased depending on the quarter, but overall the highs and lows have remained at similar levels. Prices of existing homes of all house types rose 9.5 percent year-over-year in August, which includes six straight months of consecutive price gains. This type of trend hasn’t happened since the housing peak.
“The housing market is steadily recovering with consistent increases in both home sales and median prices. More buyers are taking advantage of excellent housing affordability conditions,” said real estate expert Lawrence Yun to the Seattle Post-Intelligencer. “Inventories in many parts of the country are broadly balanced, favoring neither sellers nor buyers. However, the West and Florida markets are experiencing inventory shortages, which are placing pressure on prices.”
In Seattle, there is a shortage of homes for sale. Owners that are currently underwater on their mortgages are generally staying where they are in hopes that prices will continue to rise. The median price for a single-family home in Seattle hit $378,000 in August.
More commercial and retail businesses are being built in Seattle, which is likely to help boost home prices. Online retailer Amazon.com is leasing another 110,000 square feet of office space at 202 Westlake in South Lake Union. This agreement comes just two weeks after Vulcan Real Estate announced it will break ground on new buildings. Amazon’s total space in Seattle is now about 6.5 million square feet, including planned and previously built space.