The latest S&P Case-Shiller Home Price Index—which outlines home price trends from November 2018—shows growth restoring in Seattle, as the Emerald City was restored to the top three regions leading the U.S. for residential home price growth.
In the official press release remarking upon the report, S&P Dow Jones says “Las Vegas, Phoenix and Seattle reported the highest year-over-year gains among the 20 cities [tracked by Case Shiller]. In November, Las Vegas led the way with a 12.0 percent year-over-year price increase, followed by Phoenix with an 8.1 percent increase and Seattle with a 6.3 percent increase. Seven of the 20 cities reported greater price increases in the year ending November 2018 versus the year ending October 2018.”
A comparison of Seattle to fellow West Coast cities of San Francisco and Los Angeles shows that annual gains in Los Angeles are lagging behind those of Seattle and the Bay Area:
Phoenix and Las Vegas, which topped the nation in home price gains, also showed some signs of slackening. As David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices outlined, concerns over a weakening housing market could impact the economy at large, however trends will likely remain favorable given stable inflation growth of two percent, sustained employment gains, and rising wages. “Measures of consumer debt and debt service do not suggest any immediate problems,” Blitzer added.
Turning to our local market, King, Pierce and Snohomish counties (the three counties that comprise the Seattle Metropolitan Statistical Area monitored by S&P Case Shiller) never saw home prices dip below the benchmarks achieved in 2017. Only King County (including Seattle) ended December 2018 without a year-over-year gain on the month:
In the broader Puget Sound region, home prices sustained the pace of growth established in 2017, as December saw double-digit gains in Thurston and Whatcom counties:
The twelve-month chart of Case-Shiller Index trends shows a slope in Seattle home price growth, with Phoenix and Las Vegas losing some upward momentum, and San Francisco undergoing an intensifying downturn:
For more details on the November Case Shiller Index Results, download the S&P Dow Jones Case-Shiller summary report. For details on the implication for homes in your neighborhood, contact me for an in-depth analysis.