New Zillow report shows home values skyrocketing in Seattle metro area
SEATTLE - New Zillow home numbers are in, showing home values continue to skyrocket in the Seattle metro area.
According Zillow’s October market report, the typical home gained $48,100 in value over the past year, a 11.7 percent increase. At the same time, there are 23.6 percent fewer homes on the market to choose from.
The reports shows the median home value in the Seattle metro area is $457,700.
Zillow economists said the underlying dynamics driving rapid home value growth are unlikely to change any time soon.
“What we’re seeing is simple supply and demand: Demand from home buyers is very high, and the supply of homes actually available to buy is very low,” said Svenja Gudell, Chief Economist at Zillow. “When a lot of buyers compete for a few homes, it pushes prices up. For this to change wed need either a huge influx of new inventory, and/or a drop-off in demand.”
Experts said even though we see a lot of construction, builders can't build homes fast enough to cut the demand. Plus, sellers are reluctant to sell their homes, because they would have to compete in the buyer's market.
According to Zillow, rents are up 5.6 percent to a median rent payment of $2,198.
Real estate experts said if you're up for competition and have patience, you might have a better chance of scoring a home this holiday season.
But experts said while there might be fewer shoppers, the inventory is still limited.
"It pays off if you put on your rain boots and grab your umbrella and go out and look at homes. Not everyone wants to tour at 4 p.m. at night or around the holidays,” said Real Estate Broker Jeff Reynolds. "If you can find a home that's on the market at that time, it's usually a good time to act on it, but the inventory problem still exists where we have too few homes and lots of buyers."