While 2018 should be another good year for real estate, it might not see the hefty appreciation gains of 2017. Expect to see some slowing and a build-up of inventory in the luxury sector while the tight supply of entry-level homes steals the attention (and dollars) of would-be buyers. Other big winners will be highly coveted one-level homes that allow boomers to age in place, and communities with high walkability or those adjacent to highly-reliable rapid transit.
Seattle’s higher cost of living (and traffic) may push telecommuters and retirees alike further from the Seattle-Bellevue metro region as they cash-in their blooming equity for a lower-cost lifestyle in the burbs and beyond—leaving the costlier in-city abodes to high-income earners who want the hip urban life despite the cost.
Seattle area real estate paid off big yet again in 2017 with a 14.1% median price increase to $708,000. In fact, over the past five years, prices are up 58.7%. A Seattle house that was $446,000 in 2013 would sell for a whopping $708,000 today, or $262,000 more.
Grappling with gridlock and buyer push-back over steeply escalating prices, Seattle saw the strongest price growth in neighborhoods further from the downtown core—namely South Seattle, Shoreline, and West Seattle. These more affordable regions offered home buyers more for their money… although the quaint, inviting homes with signature “Seattle Charm” are pretty hard to pass up.