Across the nation, the coronavirus pandemic changed the way industries and individuals conducted their daily lives. In particular, the real estate market in Seattle overcame an initial slump at the onset of the pandemic, ultimately bouncing back to become one of the hottest markets in the nation.
Since 2019, home prices in our area have climbed 13.6% — the second-highest increase in the nation. Seattle wasn’t the only region to experience the surge, as new data indicates that home prices increased month-over-month by an average of 10.4% nationwide in December.
Th only city with a higher home price rise than Seattle in 2020 was Phoenix, which increased by 14.4%. San Diego was just behind Seattle, with an annual price rise of 13%. Even Chicago, which saw the slowest increase of the surveyed cities, had a gain of 7.7% over last year.
Many of these price increases have to do with incredibly low interest rates, which are encouraging more buyers to enter the market. Additionally, many companies are now offering remote work options, so buyers have a larger geographic radius in which to purchase a home.
Compounding the above is a general shortage of inventory in the region. This is causing buyers to compete with one another for the current available homes — further driving up prices and placing us firmly in a seller’s market.
This data comes after an unseasonably busy winter in which the housing market did not slow down at all. Real estate analysts and brokers are predicting continued high levels of activity in the market through spring.