As a follow-up to the December Market Update post I’ve included charts comparing the monthly median condo price of various neighborhoods for 2006 and 2007 by MLS area. I also calculated the annual median price appreciation rate based on closed sales for 2007.
For the year, Downtown, Capitol Hill and West Seattle underperformed with single-digit appreciation rates. West Seattle was particularly disappointing, eeking out a 1% increase in value. However, the North Seattle neighborhoods and Queen Anne performed exceptionally well.
Capitol Hill / Madison Park / Central – MLS Area 390
Annual Median Price Appreciation 2007: 3.1%
Queen Anne / Magnolia – MLS Area 700
Annual Median Price Appreciation 2007: 14.2%
Downtown / Belltown – MLS Area 701
Annual Median Price Appreciation 2007: 6.0%
Northwest Seattle – MLS Area 705
Annual Median Price Appreciation 2007: 16.7%
Northeast Seattle – MLS Area 710
Annual Median Price Appreciation 2007: 7.4%
West Seattle – MLS Area 140
Annual Median Price Appreciation 2007: 1.0%
Citywide – MLS Areas 140, 380, 385, 390, 700, 701, 705 & 710
Annual Median Price Appreciation 2007: 7.2%
Last year’s citywide appreciation rate of 7.2% is very respectable and validates Seattle’s housing market as faring better & being stronger than most of the country. For the coming year, the Seattle condo market is unlikely to realize the rate of appreciation we’ve seen over the past few years. Most experts predict values to plateau or rise slightly, likely under 3%. However, that will ultimately depend on the state of the local economy, access to construction funding, mortgage rates and availability of consumer loan programs as well as people’s perception of the housing market.
Source: NWMLS. Annual appreciation rate based on closed sales reported as of 1/16/08.
