Top 3 Fastest-rising home prices (May 2016 vs. May 2017)
1. Seattle +13.3%
2. Portland +8.9%
3. Denver +7.9%
Source: Case-Shiller home price index
According to the Seattle Times, the Seattle housing market is the hottest market in the country and prices are rising faster than ever since the last housing bubble 11 years ago. As a result, foreign buyers are beginning to look elsewhere. In comparison to a year ago, prices for single-family homes in Seattle rose 13.3 percent. In the past 3 years, no other region in the country saw prices rise this quickly.
After Vancouver B.C. implemented a tax on foreign buyers in 2016, Seattle became the #1 American city for foreign buyers. However, due to the rapid increase in home prices, we are now seeing foreign home sales drop. The Seattle Times states "A new annual survey from the National Association of Realtors shows foreign home sales across Washington state dropped to $1.55 billion for the year ending in March, down 24 percent, from $2.05 billion, in the previous year. Washington fell out of the top 10 states attracting foreign homebuyers."
We are not surprised to see that foreign home sales across the country have reached record levels. Foreign buyers tend to focus on concentrating their money in cheaper markets. As a result, larger cities such as Seattle, New York, and San Francisco are seeing a decline in foreign homebuyers this year.
Read the full article for more information on the Seattle Times.