Market Updates

Seattle is finally Number 1 in the housing market!

Seattle tops the nation in home-price growth for first time in 9 years

Portland had been the nation’s hottest housing market all year, with Seattle second, but the rankings flipped in September.

By Mike Rosenberg

Seattle Times business reporter

After trailing Portland all year, the Seattle area has finally reached a dubious distinction as the hottest housing market in the country.

It marks the first time in nine years that Seattle has led the country in home-price growth.

The typical single-family home across King, Snohomish and Pierce counties cost 11 percent more in September than a year prior, according to the monthly Case-Shiller home-price index released Tuesday. That marked the biggest increase among the 20 major metro areas covered.

Seattle narrowly topped Portland, where home values gained 10.9 percent. For the prior eight months, Seattle had seen its home-price growth sit second in the country behind Portland.

Fastest-rising home prices compared with a year ago

1. Seattle: +11%

2. Portland: +10.9%

3. Denver: +8.7%

4. Dallas: +8%

5. Tampa: +7.5%

Source: Case-Shiller home price index

All other areas saw single-digit growth, with Denver, Dallas and Tampa, Fla., again rounding out the top five.

Overall, Seattle prices are rising twice as fast as in the rest of the country, as they have for most of this year.

In a big moment for the nationwide housing recovery, the data showed that for the first time, national home prices in September surpassed their pre-recession peak. But homes are still cheaper than they were a decade ago when factoring in inflation.

The Seattle area had already broken its record earlier this year after seeing prices rise for more than four straight years. The region has seen home values jump nearly 60 percent since early 2012.

Seattle’s time atop the price rankings comes after it was named the region with the fastest-growing rents just a few months ago. Zillow on Tuesday reported that Seattle-area rents grew 9.1 percent in October compared with a year prior, again the most of any major metro area in the country.

The real-estate price increases are starting to have a big effect, as the Seattle area is moving up the ranks of the most expensive regions in the country to live in.

Originally published November 29, 2016 at 6:47 am Updated November 29, 2016 at 6:09 pOriginally published November 29, 2016 at 6:47 am