Trends in Real Estate: What's in Store for 2024
The real estate industry in Washington State is one of the most dynamic and diverse in the nation, with a variety of markets, sectors, and opportunities for buyers, sellers, investors, and developers. The year 2024 is expected to bring new challenges and opportunities for the Washington real estate market as the state recovers from the impact of the COVID-19 pandemic and faces new economic, social, and environmental issues. Here are some of the trends that will shape the Washington real estate industry in 2024 and beyond:
• Continued demand and low supply: Washington State is one of the most populous and fastest-growing states in the US, with a population of over 7.9 million people and a growth rate of 1.2% in 2023. This creates a high demand for housing, especially in urban and suburban areas, where most of the jobs, amenities, and attractions are located. However, the supply of housing in Washington State is not keeping up with the demand, as the state faces a shortage of land, labor, and materials, as well as strict zoning and environmental regulations. According to Zillow, as of November 2023, the median home value in Washington State was around $680,000, which was a 7.9% increase from the previous year. The median listing price was around $700,000, and the median sale price was around $650,000. The average home size was around 1,900 square feet, with three bedrooms and two bathrooms. The average time on the market was around 9 days.
• Moderate appreciation and growth: Washington State real estate is expected to continue to appreciate and grow in the next few years but at a slower and more moderate pace than in 2021 and 2022. According to various sources, the median home value in Washington State will rise by 4.3% to 5.5% over the next year, from November 2023 to November 2024. The median home value in Washington State will increase by 14.5% to 17.6% over the next three years, from November 2023 to November 2026. This means that buyers and sellers who enter the market in 2024 can expect to see a good return on their investment in the long term, especially in homes for sale in Sammamish WA, but they should also be prepared to face higher prices, competition, and bidding wars in the short term.
• Diversification and innovation: Washington State real estate is also characterized by its diversification and innovation, as the state offers a variety of markets, sectors, and opportunities for different types of buyers, sellers, investors, and developers. Some of the emerging and promising markets in Washington State include secondary and suburban markets, such as Spokane, Tacoma, and Olympia, which offer lower costs of living, a higher quality of life, and more natural amenities than the primary and urban markets, such as Seattle, Somerset Bellevue Real Estate, and Redmond. Some of the alternative and niche sectors in Washington State include industrial, residential, and healthcare, which have experienced increased demand, growth, and innovation due to the pandemic and the changing needs and preferences of consumers. Some of the trends and technologies that are transforming the Washington real estate industry include green building, smart home, and social impact investing, which aim to improve the environmental, social, and governance (ESG) impacts and risks of real estate decisions.
These are some of the trends that will shape the Washington real estate industry in 2024 and beyond. However, these trends are not static or uniform and may vary depending on local market conditions, regulations, and preferences. Therefore, it is important for buyers, sellers, investors, and developers to stay updated and informed about the latest developments and opportunities in the Washington real estate market and to consult with professional and experienced real estate agents and advisors who can help them make the best decisions.