Seattle home prices were flat in October while rents rose about one percent, according to the latest Zillow Real Estate Market Report.
Seattle homes, up 13.8 percent in the past year, have hovered at an average value of $306,000 since the end of August while the average monthly rent ticked up to $1,705, according to Zillow.
“The conditions that led to the robust appreciation experienced earlier this year, including historically low mortgage interest rates, high affordability, low inventory and high demand, are waning,” said Stan Humphries, Zillow’s chief economist. “In their place, we’re beginning to see more inventory and rising mortgage rates, which will lead to further normalization in the market going forward.”
National home values fell for the second month in a row, the first consecutive monthly declines since October 2011. Home values nationwide rose 5.2 percent year-over-year, a much slower pace than annual appreciation rates in the seven percent range experienced over the summer, further proof that the market has begun to cool off after months of unsustainable appreciation rates.
Half of the 388 metros covered in the survey experienced monthly home value depreciation in October from September.