Don’t have deep pockets? Avoid buying a home in Washington
Seattle, Northwest cities claim highest price appreciation rates
If you’re not looking to spend an arm and a leg on a house this year, then you might want to avoid buying a home Washington – and Seattle, in particular. According to the latest forecast from Veros Real Estate Solutions, home prices are expected to jump more than 12 percent in Seattle over the year.
Selling prices skyrocket
According to the recent VeroFORECAST, the housing market in Washington state is going to boom in 2018, with prices rising 4.2 percent. Seattle, specifically, will see prices climb more than 12 percent.
Eric Fox, Veros’ VP of statistical and economic modeling, said Washington cities, in general, will see price appreciation in 2018. Only 3 percent of Washington markets will experience price drops.
“Washington State is set to boom – occupying all of the top five market spots,” Fox said. “This has never happened before with one state occupying all of the top positions.”
Aside from Seattle, other Washington cities to make the top five list were Bellingham, Bremerton, Kennewick and Mount Vernon. According to Fox, the price jumps are likely a result of dwindling supply.
“These markets show no signs of letting up as supply of homes is exceedingly low, and population continues to grow,” Fox said. “Metro areas in Colorado, Idaho, Oregon and Washington comprise the remaining metro areas in the top 10. If you want strong appreciation, move to the Northwest portion of the U.S."
Dropping prices and rising affordability
Fortunately, not all markets are performing like Washington’s. According to Veros, many metros in the Northeast will actually see prices drop in 2018.
“Conversely, 12 of the bottom 25 markets are in the Northeastern states of Connecticut, New Jersey, Maine, West Virginia, Maryland, Pennsylvania and New York,” Veros reported. “Bangor, Maine, is forecast to be the worst performing market with 2 percent depreciation, with the markets of Bridgeport, Longview, Vineland and Atlantic City forecast to have approximately 1 percent depreciation over the coming year.”
Fox said high housing supply coupled with low demand is driving prices down in these areas – and will likely continue to do so as the year goes on.
Get today’s mortgage rates
Finding an affordable market is only one way to get a great deal when buying a home. Make sure to shop around and find the lowest mortgage rate, too. See what rates you qualify for today.
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