The Seattle Real Estate Market is on the rise, with home prices in Seattle hitting an all-time high in December, according to an estimate released Wednesday by Seattle-based Real Estate Investment Trust.
The market has increased by more than 2,000 percent over the past 12 months, according the data, which is in line with the national median sales price of $3.35 million.
Seattle’s median sales value in 2016 was $2.4 million.
Real Estate Investment Partners estimates the market will reach $6.3 billion in 2020, up 8 percent from the previous year, and $13.1 billion by 2025.
That would rank second in the country behind the Los Angeles area, which reached $11.6 billion in 2016, according data compiled by Real Estate Board of Greater Seattle.
While the Seattle market is outpacing the national average, there are still many buyers out there.
“We think the housing market will continue to be strong, but the market is not a linear growth curve,” said Scott Soderberg, chief market analyst for the Seattle-area REIT.
Many buyers will likely continue to wait until the market settles down to buy.
But, Soderberks optimism could be tempered by the fact that the average sales price for the city in the first quarter of 2021 was $1.75 million, which was almost $400,000 less than the median price of the last quarter, according a Real Estate Institute survey of the city’s real estate market.
Another key question for the market this year is whether the city will have enough homes to absorb demand from other metro areas, like Los Angeles and San Francisco.
If not, Seattle’s market will likely shrink to around $1 billion, according Soderberger.
According to the REIT, the average sale price of a home in Seattle in 2020 was $4.5 million.
The median sales sale price for a home sold in Seattle was $3 million in 2016.
Seattle’s housing market was driven by two factors: a strong economy and an influx of wealthy residents.
In the past decade, there have been record numbers of wealthy Seattle residents buying homes in the region, making Seattle home to one of the nation’s most affluent markets.
Some residents also benefited from the recession.
The average number of people earning less than $100,000 per year in Seattle hit a record high in 2019.
There were 9,935 homes for sale in Seattle as of March, according Real Estate Investor magazine, up from 7,721 in 2016 and 6,826 in 2015.
Overall, more than $1 trillion in housing is available in the Seattle area.
The REIT estimates that nearly $6 billion of that amount could be put to good use this year.
The real estate data is compiled by real estate analytics firm Trulia.
More from National Geographic: