A Tuesday report by the Northwest Multiple Listing Service showed the median price of a single-family home in Seattle had risen to a median price of $770,000. The substantial increase was not limited to just Seattle. The median price of a single-family home on the Eastside now sits at $950,000. When examined as a whole, housing costs grew at least 15 percent in every county in the Puget Sound region. Snohomish and Pierce counties have both seen historically high surges over the last few months and indicators show no signs of cooling in this seller’s market.
Condominium prices are also up over 22 percent from the same period last year in King County, with the average cost now topping the half a million dollars mark. This housing cost surge put Seattle at the highest growth rate of increase of any metro area in the United States over the last 16 months. Going back six years, the average house of a home in the Seattle metro area has nearly doubled.
Experts point to the booming economy as the reason why home prices continue to climb at such a fast rate. In addition to a healthy job market, the amount of available houses on the market continues to decrease, leading to an even more competitive real estate industry. Although those homeowners who have been invested in the region prior to the housing boom are likely in good shape, there is concern that Millenials do not have the purchasing power needed to buy a house in this market. Also a concern is interest rates continuing to inch up, making an expensive house even more costly in the long term.