Home prices in the Seattle metro area are expected to rise 18% over the next year, according to a new study by Porch.
“Over the past 18 months, home prices across the nation have shot up to levels unseen since the build-up to the 2008 financial crisis,” researchers wrote in the study. “In April 2021, the year-over-year growth of the Case-Shiller Index, the premier metric for housing prices, eclipsed 14.5% for the first time in its history.”
By analyzing data from Zillow, Redfin and the Census Bureau, researchers at Porch calculated expected rises in home prices in 51 large metros across the U.S. Seattle’s forecasted rise in home costs was ranked the 19th highest on that list. Austin, Texas, took the top spot — homes prices there are expected to rise by more than 37% over the next year.
Real estate experts say the nation’s dwindling supply of homes is to blame for skyrocketing prices.
In June, the National Association of Realtors released a report calling for a dire, “once-in-a-generation” solution to the shrinking supply of houses in the U.S. That report estimates the U.S. is experiencing a shortage of anywhere from 5.5 million to 6.8 million units.
In their study, which was released last week, analysts at Porch detailed how such prices are affecting buyers:
“Redfin data revealed the percentage of homes selling above asking price shot up 13 percentage points compared to pre-pandemic levels,” Porch analysts wrote. “More than 60% of buyers were putting offers on houses sight unseen and the number of homes being bought without an inspection nearly doubled compared to the previous year.”
In Seattle alone, more than 4,500 homes have sold for at least $100,000 above asking price in 2021. During the same period last year, just 400 Seattle homes sold for more than $100,000 above asking price.
While large metros — areas with more than one million people — are leading the nation in expected jumps in housing costs, the nation’s biggest midsize (350,000 to 999,999 people) and small (100,000 to 349,999 people) metros are also expected to see housing prices increase over the next year, according to the study.
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