Seattle home prices jumped again at a record pace.
Home prices in the Seattle area rose in May The 23.4% year-over-year is the fastest jump in a year, according to the S&P CoreLogic Case-Shiller House Price Index released Tuesday.
This jump broke the record set a month earlier.
Last month, the Case-Schiller Index reported biggest annual jump in April at 20.2%… (The index is two months behind and covers the metro area, including Seattle, Tacoma, and Bellevue.)
In two western cities in May, prices rose faster than Seattle: Phoenix (25.9%) and San Diego (24.7%).
The pandemic housing boom, fueled by low interest rates and relatively few homes for sale, has driven up the prices of single-family homes and made home ownership unaffordable for more people, especially in high-end cities like Seattle.
According to separate figures from the Northwest Multiple Listing Service, the average single-family home sold in King County last month was worth $ 860,000. In Seattle, the average was $ 890,444. In North King County: $ 925,000.
All over the country, prices are rising at a breakneck pace.
S&P managing director Craig Lazzar said nationwide home prices rose 16.6% in May, the fastest jump in more than 30 years of Case-Shiller tracking.
May marked the 12th straight month of price increases, with costs rising in all 20 cities tracked by the index. Prices are at an all-time high in 18 of the 20 cities, Lazzar said.
Seattle entered the top five cities with the highest 12-month jump ever, the rest being Charlotte, Cleveland, Dallas and Denver.
Economists say strong demand for new homes has boosted prices this spring.
“Despite skyrocketing house prices, the acceleration in house prices has not deterred potential buyers from purchasing property,” Selma Hepp, deputy chief economist at CoreLogic, said in a statement.
Case-Shiller data reflects the height of the spring market in May. More recently, experts have noticed some signs of a cold snap.
Although the number of homes for sale is still small, the number has increased recently. Meanwhile, some buyers seem to be on the sidelines.
At the national level applications for a new mortgage fell in a few months and sales newly built single family homes fell to its lowest level since the start of the pandemic. Local estate agents say the madness of bargaining in war slows down somewhat as new homes appear on the market and some buyers interrupt their searches for the summer.
Hepp predicts that skyrocketing prices may slow down by the end of the summer.
In the Seattle area, people outside the city are at the forefront of the price spike. Home values in areas of Snohomish County such as Stevens Lake, Mill Creek and Botell rose 24% or more in June from a year earlier, according to Zillow. Communities in Pierce County such as Parkland and Spanaway are seeing double-digit growth in excess of 20%. In King County, prices jumped about 21% in Federal Way and Kent, up from about 14% in Seattle, according to Zillow.
“Snohomish County has established itself as the hottest metro area, displacing Pierce County, which led the winter and spring,” Zillow economic data analyst Nicole Basho said in a statement. Bahaud noted that buyers are less worried about living close to their office and are “more willing to live with longer commutes if that means they can afford a larger home.”