According to Standard & Poor's home price index, U.S. home prices have risen 6.2% from one year ago. Across the nation, prices are rising at more than twice the pace of wage growth, which causes some affordability pressure.
Not surprisingly, Seattle is leading the way in home price growth, topping the charts with a whopping 12.7% increase since October 2015. Considering that home prices are outpacing wage growth and Seattle currently has a booming job market, experts suggest that potential Seattle-area buyers may look to rent instead.
However, mortgage rates remain low and this fact is taking some of the pressure off the hefty price tags. Even in the face of rising home prices, it is still fortuitous to purchase as opposed to rent. In fact, Freddie Mac reports that the average rate for a 30 year fixed-rate mortgage is 3.94% which is down from last year's 4.30%. Check out this awesome article: If you can Afford to Rent - you can Afford to Buy!
Although the home prices are continuing to rise, we saw an unseasonably high single-family home sales month in November of 2017. Sales jumped up 17.5% from October to November. In fact, home sales have outpaced construction of new homes and construction just can't keep up!
The economy is still steadily recovering from the 2008 crisis and it is evident in the Seattle-area home buying/selling market!