Home prices continue to rise on a year-over-year basis for the second month in a row. We saw prices rise 1.7% compared to the same month last year . . . what’s new, right?
Well, what’s new is that the Seattle metro growth is in fact significantly lagging behind home prices growth in the national 20-city home price index that is provided by the S&P CoreLogic Case-Shiller Home Prices Index. The Index has the 20-city index showing a 2.1% home price growth compared to September of last year.
Seattle Home Prices May be Steadying
This is news because, as we said in our recent Market Update, we may be settling into a slower growth pattern and possibly a “new normal,” but that has yet to be seen. As of right now, Greater Seattle price growth appears to be gradually steadying with markets like Tacoma being responsible for the most significant home price growth. Additionally this continues the trend of Seattle no longer being the hottest housing market in the country. As the Seattle Times noted in August of last year, Seattle fell to the second hottest market in the country, passing the mantle to Las Vegas and ending a 21-month streak.
How Does This Compare to Other Markets?
Month-over-month home prices in Seattle fell by 0.3% in September, but also as noted in our recent Market Update, sub-markets like Vashon are the most significant drivers of that decline.
What is noteworthy is what this may signify on a national scale. For the first time in recent memory, Seattle becomes one of the slower growing metropolitan areas in the country with only New York, San Francisco, and Chicago being slower. San Francisco actually saw a price decline in year-over-year home prices compared to September of 2018; they were the only market that saw a decline.
Rounding out the list with the fastest growing markets of Tampa, Charlotte, and Atlanta seeing growth slightly above 4% was Phoenix taking the top spot for the fourth month in a row with 6% year-over-year growth in home prices.