Seattle-area home prices in January rose 10.7 percent from a year ago, the second-highest annual gain among metros in the S&P/Case-Shiller 20-city index. Over the month, Seattle prices rose 1.5 percent.
Seattle-area home prices continued to soar in January, with the second-highest annual gain among 20 U.S. metro areas, according to the S&P/Case-Shiller 20-city index released Tuesday.
The average price for existing single-family homes sold in King, Snohomish and Pierce counties jumped 10.7 percent from January 2015.
Seattle was second only to Portland, which posted an 11.8 percent increase year over year. Seattle even beat San Francisco, which saw a 10.5 percent increase, and Denver, which saw growth of 10.2 percent.
Over the month, Seattle-area prices went up a seasonally adjusted 1.5 percent, the same pace as December’s gain.
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Nationally, prices in the 20-city composite climbed 0.8 percent over the month in January, the same as in December. The 20-city index rose 5.7 percent year-over-year.
“Home prices continue to climb at more than twice the rate of inflation,” David Blitzer, chairman of the S&P index committee, said in a statement. “The low inventory of homes for sale — currently about a five month supply — means that would-be sellers seeking to trade up are having a hard time finding a new, larger home.”
Svenja Gudell, Zillow’s chief economist, said in a statement that the low supply creates “some challenges for homebuyers, particularly first-time and lower-income buyers, struggling to find a home that fits both their needs and budget.
“Economic growth hasn’t been overwhelming, but it has been consistent, and as long as wages and job opportunities keep rising, the housing market should remain fairly stable and healthy,” Gudell said.
Average home prices for both the 10-city and 20-city indexes remain 11 to 13 percent below their mid-2006 peaks, according to S&P/Case-Shiller.