The Washington housing market is booming due to increased demand for housing. Tech giants such as Microsoft and Amazon have been here for decades. Still, in recent years, companies like Google and Facebook, amongst numerous others, have set up their operations here as well. This influx of high-paying jobs has led to a spike in demand for housing. In response, large companies are investing in building new offices and housing facilities for their employees.
Will these changes be substantial enough to affect the future housing market forecast?
According to experts, the Washington housing market will remain active. In 2021, the housing market exploded as sellers coped with many offers from buyers, many of whom were willing to pay hundreds of thousands of dollars more than the asking price. According to the Washington housing market forecast for 2022, analysts believe this momentum will continue to grow this year because of the likelihood of continuing increased demand for homes and a growing economy. Recent increases in interest rates are adversely affecting mortgage rates, which have almost doubled in recent months. We shall have to wait and see how that affects the housing market.
Washington Housing Market Overview
While inventory levels reached record lows, demand for high-quality real estate property in Washington State increased at an unprecedented rate.
For instance, Seattle is the most populated city in Washington State and is also the primary economic hub for the state. Unemployment rates have continued to plummet over the years, which has made it easier for people to find work, increasing the buying power of Washington residents, according to a recent report from Forbes magazine.
On the other flip, the Washington housing market forecast indicates that a lack of new construction will continue throughout the year as more people choose to rent instead of buy, according to predictions from Trulia’s chief economist Ralph McLaughlin.
According to the statistical overview for July 2022 –
- The median price of Washington homes for sale in July 2022 was $625,000, an increase of 6.1 percent over the last month of June 2022.
- The NWMLS brokers sold 7,645 residential homes and condos in July 2022.
- The total dollar value of closed sales for residential homes is $5.30 Billion and $553 Million for condominiums, a total of $5.86 Billion in July Month of 2022.
- The median sales price in July 2022 is about $809,000, an increase of 19.5% compared to the sales price in July 2021.
- The NWMLS brokers sold 679 new construction residential homes and condos in July 2022.
- There were 15,381 Washington houses for sale in active listings and 11,805 new listings added in July 2022. (A decrease of -8.6% from July 2021)
- 1% of properties sold for less than the asking price! Also, a 15.2 percent decrease from the previous year.
Top 10 Metros in Washington with the Fastest Growing Sales Price
Here you can find the list of the top 10 metros in the Washington housing market with the fastest-growing sale prices of nearly 50%. The metros include –
- Lake Tapps with 47.8%
- Anacortes with 38.1%
- Lynden with 33.7%
- Lake Morton-Berrydale with 33.6%
- Silver Firs with 33.1%
- Washougal with 32.7%
- Artondale with 31.0%
- Wenatchee with 30.2%
- Ridgefield with 30.0%
- North Bend with 28.2%
What Should Investors Know About the Washington Housing Market Forecast?
When purchasing a house, it can be challenging to determine how the real estate market will perform. Knowing what to expect from each one is a great way to understand what will happen with your purchase and ensure that it’s in line with your needs.
The Washington housing market forecast indicates an increase in population and employment in major metros such as Seattle, Tacoma, and Spokane.
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The demand for property will continue to grow.
According to the Washington housing market forecast, the number of people renting from their primary residence will continue to increase to a total of 1.5 million as more and more individuals move into the area. Also, many will choose to remain put as renting costs are around 25% cheaper than buying in Seattle, for example.
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The housing market will remain remarkably tight as demand continues to outpace inventory.
As the Washington housing market forecast indicates, homes are selling more rapidly. This forecast says the current market conditions will continue to escalate throughout the next five years.
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The supply of homes will remain low so demand will increase.
With the Washington housing market 2022 forecast indicating a housing shortage in Seattle, Olympia, and Spokane, it is clear that more people are searching for homes in these cities. Also, there are extreme price increases that can be attributed to such shortages, and as a result, home prices have risen significantly during 2018-2019.
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Property price increases will continue but not as aggressively as they did the previous year.
According to the Washington housing market forecast, property prices are expected to increase by an average of about 4.6%. However, it should be noted that this forecast is based on the average sales price for every type of property. It means that there will be some types of property that will see significant increases and some that will see decreases in value.
The pandemic effects on the housing market? Is it still affecting the current market trends?
In the opinion of many experts, the crisis in the real estate market in Washington could significantly reduce the demand for new homes. However, for some buyers, this is an excellent opportunity to buy a home at a lower price than they would have been able to afford.
At the moment, the Washington housing market has already boomed and changed many experts’ opinions on the real estate crisis. Wouldn’t it be proof that real estate is unpredictable?
In Conclusion
The demand for real estate property in Washington State continues to rise yearly as more people from other states choose to relocate. It can be attributed to low unemployment rates and high-paying jobs that improve the quality of life.
Ultimately, the shifts in the Washington housing market are unavoidable and unpredictable, yet considering the yearly statistics and expert advice will be a great help while buying or selling a house in Washington State.
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