You May Be Busier Than Ever in Washington’s Hot 2021 Real Estate Market
Last year, the Washington real estate market exploded as sellers across the state fielded multiple bids and buyers offered tens of thousands over asking price. In 2021, housing markets in Washington state are forecasted to continue that upward arc. With high demand, growing prices, and a strong economic forecast, real estate agents all across Washington are sure to be busy this year.
2021 Washington Real Estate Outlook: Hot
In November 2020, the average home in Washington was priced at $451,082, an 11.3% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 8.9% within the next year. Rising prices echo the gradual healing of the economy statewide, signaling that this year could be profitable for agents and sellers alike, while low-interest rates maintain some degree of affordability for buyers.
New listings also grew 16.2% year-over-year in October 2020. While more homes on the market are great for buyers, this figure didn’t outpace new pending sales, which increased a staggering 37.0% for the same timeframe. Coupled with low interest rates, disproportionately strong demand across the state designates Washington as a seller’s market as 2021 unfolds.
After the economic tribulations of 2020 and in the midst of a national big city exodus, rent prices increased only 1.4% statewide and even decreased a whopping 18.3% in the greater Seattle area. Meanwhile, only 0.5% of Washington homeowners fell delinquent on their mortgage, one of the lowest rates in the nation, and equity slipped into the negative on only 1.6% of homes statewide. So, while new transactions boom and attractive rent prices draw more and more people to Washington, current homeowners continue to thrive as well.
2020 Washington Real Estate Market Data
|Zillow Home Value Index||$451,082|
|1-Year Change on Home Values||+11.3%|
|1-Year Change on Rent Prices||+1.4%|
|Homes With Negative Equity||1.6%|
|Delinquent on Mortgages||0.5%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Washington
In October 2020, Washington’s Employment Security Department reported the state’s unemployment rate had fallen significantly from 8.3% to 6.0%. Compared to the national unemployment rate of 6.7%, Washington’s job market shows steady improvement. As healthy economic activity often correlates with growth in the real estate industry, decreasing unemployment rates are a promising sign for agents regarding the year ahead.
Meanwhile, some of Washington’s most scenic metros are also experiencing an influx of new residents. As people continue to work and learn from home, placing new emphasis on loving where they live, it’s no wonder that they’re drawn to the Evergreen State. The Methow Valley and San Juan Islands are particularly bright spots, but agents statewide may be in for a profitable year.
Rising home prices are also fueling equity with homeowners in Washington enjoying some of the largest gains to the tune of $35,800. The potential to make a nice profit is good news for owners and agents alike, especially as we head into further uncertainty surrounding the pandemic. With the help of low interest rates and surging demand, buyers are still eager to commit, even to a higher price tag.
With a strong 2021 forecasted, Washington real estate agents will need to be at the top of their game. From buyers with affordability top of mind to sellers fielding multiple offers, there has never been a better time to serve your fellow Washingtonians. This year, agents can expect to benefit from and help contribute to a healing local and national economy as the hot Washington real estate market blazes on.
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