2018 Washington Real Estate Market Predictions

The state of Washington is named after the first President of the United States, George Washington, and it was the 42nd state admitted to the Union. Both its official seal and official state flag bear George Washington’s portrait, and it is often referred to as Washington State to avoid confusion with the District of Columbia.

Nicknamed the Evergreen State, this Pacific Northwest state boasts temperate rainforests, mountains, and sprawling woodlands. It is the leading lumber producer in the county, and it also supplies the largest amount of several crops such as apples, hops, and cherries.
Washington housing marketIt is the 18th largest state in the country and the 13th most populous. It clocks in with roughly 7.4 million people. It also has a climate that varies enough from East to West to provide suitable weather for every taste. It is home to Mt. Rainer, the highest peak in the United States, several national parks, and the iconic Seattle Space Needle.

Read 2018 Georgia Real Estate Market Predictions

It has an unemployment rate of 4.8% that has held steady from month-to-month for the past year, and a cost of living that is higher than the national average. The biggest factor in the cost of living comes from the Washington housing market. Rent prices illustrate this point well. Renters can expect to spend on average, at least $100 more a month for a comparably sized apartment elsewhere in the country.

The same kinds of cost increases apply to the purchasing of homes. These price increases, coupled with declining home inventory, are set to make 2018 a sellers dream for the Washington housing market of 2018. Here’s why sellers can expect some advantages.

Washington Housing Market Predictions for 2018

According to Zillow, the median home value in Washington is $367,769. Over the past year, home prices in Washington have risen an astounding 11.5%.

What is even wilder is that Zillow estimates these values will increase another 6.1% over the course of 2018. That’s two incredible years for sellers back-to-back. Zillow sites the median list price per square foot in Washington as $203. Currently, the median price of homes listed on Zillow in Washington is $359,000 while the median price of homes that sold is $344,700.

Homes in Washington spend an average of 75 days on Zillow, and the Washington housing market is given a near perfect ten health rating from the real estate giant.  This rating is calculated by considering the increase of the median home values balanced against foreclosures and delinquent mortgages.

Influencing Factors in the 2018 Washington Real Estate Market

The prediction of a continued housing shortage for the state of Washington in 2018 will likely keep demand and prices high as inventory stays low yet again. Experts define a balanced market as one in which there is a four to six months supply of homes at the current rate of sale.

Currently, the Washington housing market overall has a 1.5 months supply of homes. It’s fair to say that this is in part due to the general market slow down that occurs during the winter months, but experts caution attributing the declining supply solely on the winter time.

In the meantime, sellers can enjoy the advantage as builders seek to come up with creative solutions to solve the housing shortage. For many states in similar predicaments, this involves creative solutions, smaller homes, and smaller housing lots.

The Best Places to Live In The Washington Housing Market

60% of residents live in the Seattle metropolitan area, and Seattle itself, located in King County, has a population of right around 700,000 thousand. It’s a vibrant city with a rich musical history and alluring cityscape.

It also has a bustling economy that ranks as the 11th largest metropolitan economy in the country. It is considered a haven for start-up companies, as well as a city that focuses on green, environmentally friendly practices. It harbors the headquarters of five major Fortune 500 companies including Starbucks and Amazon. The unemployment rate for Seattle is 3.4% as of February, just under the national average.

Spokane is the second most populous city in Washington, and its housing market has performed remarkably well over the last year. Home values increased in Spokane more than 12% in 2017, and Zillow predicts that values will continue to rise another 3.6% over the course of 2018.

The Evergreen State is Making Green

Washington is enjoying a great seller’s market at the moment, and all indicators point to another year of selling success for the Evergreen State. As supply rushes to meet with the ever-growing demands of homebuyers, sellers can sit back and relax for the moment. For those thinking about putting their home on the market in the state of Washington, there doesn’t look like there’s a better time to do it.