Washington Housing Market Vitality

Market Rank

seven

Washington metro area house prices are forecasted to outperform the national market over the next twelve months. Currently, the market is outperforming the overall U.S. market. Compared to 12-months ago, Washington’s housing market has strengthened. Current local economic conditions support an estimated 4% increase in house prices over the next twelve months. Based on the housing market vitality of the fourteen metro housing markets which comprise it, Washington’s housing market ranks seventh amongst all states and D.C. The three-month outlook is positive.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

Washington Metro Housing Markets

Washington is comprised of fourteen metro housing markets that account for nearly 90% of the state’s population. The Evergreen State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREA SITUATION OUTLOOK US METRO RANK (/402)
Bellingham, WA Outperforming Positive 69
Bremerton-Silverdale, WA Outperforming Positive 17
Kennewick-Richland, WA Outperforming Positive 44
Lewiston, ID-WA Outperforming Positive 53
Longview, WA Outperforming Neutral 148
Mount Vernon-Anacortes, WA Outperforming Positive 68
Olympia-Tumwater, WA Outperforming Positive 39
Portland-Vancouver-Hillsboro, OR-WA Underperforming Negative 321
Seattle-Bellevue-Everett, WA Underperforming Negative 244
Spokane-Spokane Valley, WA Outperforming Positive 80
Tacoma-Lakewood, WA Outperforming Positive 31
Walla Walla, WA Outperforming Positive 60
Wenatchee, WA Outperforming Positive 54
Yakima, WA Outperforming Positive 90

Industry Specialization

Washington’s state economy is specialized in Construction, Fncl activities, and Information. Mining, Manufacturing, and Edu Health svcs industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a lower incidence of poverty amongst Washington residents and they have greater purchasing power. There are more high school graduates and a larger proportion of the population is college educated. Washington’s population is comparatively less diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Data through September 2020