Seattle saw a 10.7 percent year-over-year increase in home price gains in October, the highest rate in the nation, according to GeekWire. In September, the Seattle market experienced 11 percent growth, per data from the S&P CoreLogic Case-Shiller National Index.
At nearly double the national increase, Seattle is benefitting from a burgeoning tech industry, led by Amazon, Facebook, and Microsoft. These companies are luring highly paid workers that can afford expensive houses.
While a bubble may not be forming, this kind of growth isn’t expected to be sustainable.
“To have home prices go up — the last 12 months in our data 10.7 percent a year — to have them go up at that rate for several years means they’re growing much faster than inflation, so home prices are looking bigger and bigger compared to just about anything else,” said David Blitzer, Managing Director and Chairman of the Index Committee. “They’re growing much faster than incomes, which is clearly a key factor.”