Real Estate News

Is Washington the next hottest housing state?

Other than Seattle, which is regularly featured on lists of the hottest housing markets, cities in Washington state rarely make the cut for top lists, until now.

Washington’s housing markets recently dominated a monthly market report from Pro Teck Valuation Services.

Five of the top 10 performing markets in the country in November were located in Washington. The CBSAs included:

  • Tacoma-Lakewood, Washington
  • Spokane-Spokane Valley, Washington
  • Olympia-Turnwater, Washington
  • Bremerton-Silverdale, Washington
  • Mount Vernon-Anacortes, Washington

However, the dominance is not necessarily a positive for residents living in the area.

The chart below shows the history of all five CBSAs, along with a projection for how they will perform moving forward.

Click to enlarge

markets

(Source: Pro Teck)

A huge reason the markets dominated is their lack of available housing stock, said Tom O’Grady, CEO of Pro Teck Valuation Services.

“All five metros have less than three months of remaining inventory,” said O’Grady. “That means that based on typical number of sales in these markets it will only take three months to sell all of the current inventory. This lack of inventory signifies a sellers’ market where demand exceeds supply, causing prices to rise.”

So while these markets may be hot, O’Grady noted that a stable market typically has around six months of remaining inventory.

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