With technology giants such as Facebook, Amazon, and Apple continuing to expand in the Seattle metropolitan region, growth in the six-county Puget Sound area, encompassing King, Kitsap, Pierce, Skagit, Snohomish, and Thurston counties, remains strong, according to Q3 Metrostudy data.
As of Q3 2019, over 68,000 jobs were added for the year, with the majority of those jobs being created in King County with 43,965 and Snohomish County with 15,095. Year-over-year job growth shows the six counties adding 88,384 jobs, which increased the job growth rate to 3.8% for the second consecutive quarter.
By the Numbers
Population: 3.9 million
2019 Local Leaders Rank: No. 19
Annual Job Growth: 3.8%
Q3 19 Annual Starts: 9,592
Q3 19 Annual Closings: 7,485
Median Sales Price: $568,000
Average Rental Rate: $1,864
“The tech sector continues to see strong employment growth numbers with Amazon, Facebook, and Expedia advertising more than 21,000 jobs,” says Todd Britsch, Metrostudy regional director for the area. “There is over 8 million square feet of office space with leases already signed or owned between Facebook and Amazon coming online in 2022 and 2023. Apple will also become a presence in Seattle over the next few years, adding 2,000 jobs to the new Seattle campus.”
With strong job growth, the total number of existing home listings continues to decline. September 2019 saw a 22% decline in active listings when compared with September 2018. On the other hand, pending sales are up 19%, with Snohomish County leading with a 32% increase year over year and King County with a 22% increase year over year.
The resale months of supply still nears historic lows with most of the Puget Sound dipping under the two-month supply mark. Of the core six, Thurston County has the least supply at 1.4 months and the lowest average days on the market at 21 days.
As for new-home sales, Q2 2019 was the best second quarter for detached new construction sales volume since 2006, says Britsch. Just over 2,000 sales were reported in Q2 2019, a 20% year-over-year increase from 1,672 in Q2 2018, and Q3 2019 continues the hot streak with volume up 30% year over year with 1,590 sales. Unsold spec inventory has fallen to manageable numbers and now averages at a four-month supply.
The average median sales price in the Seattle metro soars above the U.S. median home value of $231,700. From Q2 2017 to Q4 2018, the average median sales price for the area increased 20% and reached $587,167; as of Q3 2019, it had decreased 3% to 568,000.
“The market is doing quite well across the board,” continues Britsch. “Sales are up 35% in the higher price areas—with the exception of downtown Seattle where the attached sales are down 27% and West Seattle sales are down 6%.”
Housing analysts predict the area will see continued job growth and good in-migration through 2025. Even with a possible looming recession, Britsch believes “Washington state should skip right over the top” due to the high forecast job growth for the coming years.
