Housing prices in the Seattle area rose 11 percent last year, marking a surge of nearly twice the national average.
Speaking to Fox Business, PwC Real Estate Trends' Mitch Roschelle said the sustainability of the growth seen in the Seattle market is a "concern," as the city is a "one-industry town" and not comparable to a more diversified city like San Francisco.
Roschelle said there is a lot of demand for housing in Seattle, particularly among graduating college students. On the other hand, while supply of new housing is increasing in the area, it is expensive and "really not affordable for the kids."
Roschelle added that the median price of a house across the United States is around $231,000. Meanwhile, the average housing price in Seattle is in the $400,000-range. As such, it is a "challenge" for first time home buyers to find housing in the surging market.
On the other hand, the average housing price in New York city region is $1.2 million – although much of the pricing comes from high-end properties in Manhattan.
"The high end supply of the market is over-developed," Roschelle said. "The low end supply is not available."
Finally, Roschelle suggested that in an era of rising home prices, it is "never a good idea" for first time buyers to wait, as they risk waiting too long and missing out on appreciating prices. However, he did acknowledge that even as a real estate expert, it may difficult to time the market.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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