No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
We’ve been talking about the rapid rise of home prices in Washington for quite some time now, and how the state continues to outpace the nation. Well, here we go again.
Two recent reports by CoreLogic, a real estate data and analytics firm, showed that Washington State had the biggest home-price gains and the most equity growth for homeowners — of any state in the nation.
Recent forecasts suggest that the state could experience continued home-value appreciation through the rest of 2021 and into 2022.
According to a recent news release from CoreLogic, home values across the US increased 18.1% year-over-year. Washington state saw incredible year-over-year gains of 22.8% from November 2020 to November 2021.
So it’s official, based on this report anyway. House values in Washington have once again risen considerably more than many other states across the country.
These trends affect different people in different ways. Home buyers who have been “on the fence” about making a purchase over the last few months will encounter higher housing costs. Homeowners, on the other hand, are enjoying unprecedented levels of equity growth as their home values continue to rise.
And that leads us to a separate but related report about home-equity growth across the nation. Once gain, Washington led the way…
CoreLogic published another report that showed U.S. homeowners gained an average of $51,500 in equity from the second quarter of 2020, to the second quarter of 2021. That was the national average. Home equity growth in Washington State was much higher than that.
According to the company’s report, Washington homeowners gained an average of approximately $102,900 in home equity.
This is only logical. A real estate market that experiences the largest price gains would also see the most dollar growth in equity levels. They’re practically one and the same.
The tremendous home-equity growth enjoyed by Washington State homeowners could lead to an increase in mortgage refinancing in the future — especially if rates go down.
One of the reasons why home equity has risen so much in Washington is the inventory factor. Or lack of it. There’s currently a shortage of homes for sale across the state, relative to the number of buyers who are seeking them.
This is true for the nation as a whole. According to Dr. Frank Nothaft, an economist who specializes in housing: “New construction has failed to keep up with and meet new housing growth or replace existing inventory. More construction of for-sale and rental housing will alleviate housing cost pressures.”
Inventory conditions are particularly tight in Washington. In fact, the state is home to some of the most constrained — and most competitive — real estate markets in the country. And nowhere is this more evident than in the Seattle metro area. As of May 2018, Seattle had less than a one-month supply of homes for sale. A five- to six-month supply is considered “balanced.”
Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We have been serving the entire state since 1992, as well as the broader Pacific Northwest region, including Oregon, Idaho, and Colorado. Please contact us if you have mortgage-related questions.
Whether you’re buying a home or ready to refinance, our professionals can help.
{hours_open} - {hours_closed} Pacific
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.