Across the country, home prices have been rising due to an improving economy and shrinking inventory. And while home prices rose 5.3 percent nationally year-over-year in February, some housing markets, especially in the Pacific Northwest, are rising more rapidly, realtor.com reports.
In fact, some of these Pacific Northwest markets are rising four to five times faster than inflation. Portland, Ore. experienced the largest year-over-year increase as the cost of an existing home increased 11.9 percent. Part of the problem is that people are not putting their homes on the market in order to trade up to nicer, larger ones because they are afraid they will not be able to find or afford a new house. However, those that do decide to sell their homes are seeing some positive outcomes, as not only are they selling quickly, but they are getting at least 10 percent over their asking price.
Those who are looking to buy a home in Portland, however, are experiencing something quite the opposite. Buyers should expect to put in around six to 10 offers before finding one that sticks, according to Amanda Haworth, a Portland real estate agent.
Another Pacific Northwest state not far behind Portland was Seattle, as prices increased 11 percent year-over-year in the Emerald City. While the prices in Portland and Seattle may seem a bit shocking, everything is relative, and compared to prices for similar homes in somewhere like Silicon Valley, they seem pretty reasonable.
While prices can’t rise at this rate forever, it will most likely take at least a year for them to plateau and become more affordable for more people.