NW REporter. Balance finally returning to housing market as buyers welcome more choices, moderating prices

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1 NW REporter Serving More Than 29,000 Real Estate Professionals in the Northwest October 2018 LATEST NEWS RELEASE Balance finally returning to housing market as buyers welcome more choices, moderating prices KIRKLAND, Washington (October 4, 2018) Housing inventory continued to improve during September while the pace of sales slowed in many counties served by Northwest Multiple Listing Service. Balance is finally returning to the market, and with it, slowing home price growth, stated OB Jacobi, president of Windermere Real Estate. A new report from Northwest MLS shows double-digit increases in inventory in several of the 23 counties it serves, led by a 78 percent year-over-year gain in King County. Despite improving selection in the central Puget Sound region, a dozen counties reported drops in the number of active listings compared to last year. System-wide, the month ended with 2.56 months of supply of single family homes and condos, well below the 4-to-6 months analysts use as an indicator of a balanced market between sellers and buyers. The current level is the highest since February 2015 when member-brokers reported 3.56 months of inventory. In King County, supply exceeded two months for the first time since January Condo inventory remains sparse, with only 0.34 months of supply area wide, despite improving inventory (up nearly 70 percent from a year ago). The shortage is expected to ease as construction progresses on several recently-announced high-rise projects. Brokers added 10,458 new listings of single family homes and condos to the MLS database during September, slightly more than the year-ago figure of 10,120. At month end, buyers could choose from 19,526 listings, a 22.9 percent improvement from twelve months ago when selection totaled 15,888 listings. Commenting on the wider selection, Mike Grady said buyers are at long last now seeing properties that stay on the market longer. Listings that are priced appropriately, and not based on the feverish market we saw just a few months ago are still selling quickly, and home prices are still showing 8 percent appreciation year-over-year more than double the rate of inflation, added Grady, the president and COO of Coldwell Banker Bain. With improving inventory, some brokers suggest the market may be showing signs of pausing, if not softening. A market shift may be under way, but they believe activity will stay strong. J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, encouraged would-be buyers to put extra focus on October, which he described as the last great month for new listings until March Over the winter, new monthly resale listings will lower by approximately 50 percent compared to summer months. He also noted interest rates, currently in the upper 4 percent, are projected to rise in the coming months. This is a more traditional yearly market cycle taking the place of the unusually overheated real estate market of the past several years, said John Deely, principal managing broker at Coldwell Banker Bain. Given there doesn t appear to be an end in sight related to the region s job growth, with employees moving here and not The NW REporter is a joint monthly real estate newsletter from NWMLS and the Seattle King-County REALTORS. Most content from the NW REporter may be republished or reprinted with attribution. Please inquire by calling (800) ext. 704.

2 enough units being built to accommodate them, we believe this market normalization will continue, stated Grady. (For every six new jobs created in the Seattle/Tacoma/Bellevue region, there was only one single-family permit issued, according to data from the National Association of REALTORS.) Northwest MLS director Robert Wasser reported the recent re-balancing of the market has led to fewer listings with offer review dates and pre-inspections, which he said is a positive for buyers hoping to retain their contingencies. His analysis of MLS statistics indicated the median marketing time in King County has risen to 14 days. Also, prices for closed sales are at 100 percent of their list price for a third straight month. In the South Sound the market has shifted into neutral and is idling at the moment, commented Dick Beeson, principal managing broker at RE/MAX Professionals in Gig Harbor. Noting inventory has improved in both Pierce and Thurston counties but nowhere near what King County has experienced, Beeson said buyers can see more homes available for sale for the first time in three years. Buyers are taking deep breaths as they survey this new territory. Beeson thinks the new normal at two-plus months of inventory is healthy and long anticipated. He also believes the steep curve of ever-increasing prices and scarcity of properties has crested. Ken Anderson, another Realtor in South Puget Sound, noted the bigger selection for buyers is good timing with interest rates on the rise. We are finding buyers eager to get into homes this fall to take advantage of the still incredibly low borrowing rates. Sellers need to be mindful of softening sales, he suggested, adding they ll have to keep a sharp eye on this trend and have a pricing strategy to match. Anderson, the president/owner and designated broker at Coldwell Banker Evergreen in Olympia, said sales remain robust, describing last month as the second best September on record for closed sales. Even though pending sales softened a bit he said they remain high by historical standards and says we remain solidly in a seller s market but are trending toward balance. This is welcomed as prices here have risen much faster than our market s long-term trend line. Pending sales (mutually accepted offers) were down nearly 14 percent area-wide, with about half the counties in the MLS report showing double-digit declines. Members notched 8,913 pending sales last month, a slippage of 1,435 sales when compared to the same month a year ago. Closed sales also reflected slower activity. Members reported 7,630 completed transactions during September, down 18.6 percent from the year-ago volume of 9,371. Through nine months, this year s closings are down 4.4 percent compared to Prices across the 23 counties in the Northwest MLS report are up about 5 percent from a year ago, with ten counties reporting double-digit gains. The median price for last month s completed sales of single family homes and condos system-wide was $400,000, up from the year-ago median price of $381,000. Last month s price was down $15,000 (-3.6 percent) from August and $25,000 (-5.9 percent) from the year s peak (so far), which occurred in June when the median price was $425,000. For the four-county Puget Sound region, the median price for September s completed transactions was $455,000, up about 5.8 percent from a year ago. Despite slower sales, Northwest MLS spokespeople remain upbeat. The housing market close to the job centers has gone from a historic extreme-frenzy market in the spring down a few levels of hotness to a strong level of pending sales activity for new listings, said Scott. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 2 of 15

3 Rising interest rates and slowing home prices are affecting the psychology of the region s housing market, and causing some to speculate that we re heading towards another housing crash, but that s definitely not the case, commented Jacobi. Noting it s been more than 15 years since this area experienced a normal market, Jacobi suggested people have just forgotten what it looks like. As long as the local economy remains strong, there s little cause for concern about the shift we re experiencing. He believes there s little cause for concern about the shift we re experiencing, so long as the local economy remains strong. Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership of around 2,200 member offices includes more than 29,000 real estate professionals. The organization, based in Kirkland, Wash., currently serves 23 counties in the state. Statistical tables follow on next page Serving More Than 29,000 Real Estate Professionals in the Northwest Page 3 of 15

4 SINGLE FAM. HOMES + CONDOS LISTINGS PENDING SALES New Listings Total Active # Pending Sales CLOSED SALES MONTHS OF INVENTORY # Closings Avg. Price Median Price This month Same mo., year ago King 4,247 6,587 2,869 2,331 $729,083 $610, Snohomish 1,607 2,568 1,307 1,180 $498,670 $458, Pierce 1,557 2,742 1,612 1,367 $391,704 $345, Kitsap $430,098 $355, Mason $295,610 $265, Skagit $421,524 $365, Grays Harbor $208,410 $188, Lewis $248,458 $237, Cowlitz $270,092 $257, Grant $197,687 $195, Thurston $341,401 $313, San Juan $601,119 $550, Island $439,885 $360, Kittitas $424,122 $341, Jefferson $419,478 $360, Okanogan $257,807 $220, Whatcom $397,627 $368, Clark $411,558 $355, Pacific $188,267 $181, Ferry $163,917 $130, Clallam $317,701 $280, Chelan $387,279 $346, Douglas $337,158 $319, Others $231,706 $229, Total 10,458 19,526 8,913 7,630 $498,217 $400, Tables continue on next page Serving More Than 29,000 Real Estate Professionals in the Northwest Page 4 of 15

5 4-county Puget Sound Region Pending Sales (SFH + Condo combined) (totals include King, Snohomish, Pierce & Kitsap counties) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Housing affordability challenges prompt researchers to consider altering methods for measuring spending Should housing affordability be assessed in a different way than the typical 30 percent measure? Researchers at The Harvard Joint Center for Housing Studies explored altering a widely used metric to better account for notable changes in various factors. The typical gauge has been based on allocating 30 percent of a household s income for shelter, a figure the Housing Center uses for analyses in its annual signature report, the State of the Nation s Housing. This reassessment is particularly appropriate given the notable changes that have occurred over the decades in the relative costs of food, clothing, and other necessities, the growth in the number and share of one- and two-person households, and the increased frequency of burdens among moderate-income households that may have enough money left over for non-housing essentials even after paying 30 percent of their income on housing, wrote the Center s Chris Herbert and Daniel McCue. Herbert, managing director of the Joint Center; McCue, senior research associate and lead author of the State of the Nation s Housing reports; and Alexander Hermann, a research analyst, examined an alternative measure based on the concept of residual income. The substitute approach improves on the simple 30-percent standard by estimating the cost of everything else as a function of the number and ages of all household members. It then estimates how much income would be available to pay for housing if those other costs were fully covered, they explained. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 5 of 15

6 The recently published JCHS working paper compared the housing-burden methods in three disparate metropolitan areas: Los Angeles, Phoenix, and Cleveland. Noting there were some large differences in family types and income levels within each metro, the trio of researchers reported the two measures produced very similar estimates of the rate and level of cost burden for each area as a whole. In analyzing the two methods, the researchers identified the downsides of each and reported their exercise produced four major findings, which are explained in their 26-page working paper on measuring housing affordability. Given the simplicity of the 30-percent standard, it remains a reliable indicator of affordability both over time and across markets, the paper states. Nevertheless, the researchers said the results also indicate caution should be used in comparing affordability challenges across income levels or household types. The Harvard Joint Center for Housing Studies provides research, education, and public outreach programs to help leaders in government, business, and the civic sectors make decisions around housing issues and policy. Staying current on sign codes benefits all Most brokers who belong to Seattle King County REALTORS (67 percent) have never had a real estate sign for an open house removed by a city official for sign code violations. Despite widespread compliance and ongoing educational efforts, about one of every 10 brokers who responded to a recent poll admitted to having multiple signs confiscated by a city enforcement officer. SKCR works with cities throughout Puget Sound to make sure real estate sign codes are reasonable and promote fair housing goals, explained attorney David Crowell, the association s director of governmental and public affairs. Crowell and SKCR s housing advocates are proactive in challenging efforts by some jurisdictions to eliminate real estate signs. We ve even been successful in enhancing Realtor marketing efforts by increasing the number of real estate signs allowed in some areas, he noted. When rules are followed, it helps us advocate for even more Realtor-friendly codes. SKCR s proactive efforts to keep members mindful of sign codes includes a 90-second video on best sign code practices, and an easy-to-search matrix of codes in most cities in King, Snohomish and Pierce counties. That 22-page resource is also available for downloading. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 6 of 15

7 Fix-up Costs Before Sale & 1031 Exchanges By Annamarie Kooning It is common for many Washington real estate investors to make repairs, updates, and improvements to enhance a relinquished property in preparation for listing with a real estate agent or broker. A commonly asked question by investors in Washington is, Can I be reimbursed from the 1031 exchange for the costs associated with improving or repairing the property immediately before the sale? The answer is no, not without generating a tax consequence. The reason for this is that any exchange proceeds an investor receives from a 1031 exchange are considered boot and are generally taxable to the extent the investor has a capital gain tax consequence. However, improvements an investor makes to improve a relinquished property can be added to the cost basis of the property. In the most simplistic terms, cost basis is the amount a property is worth for tax purposes. The cost basis changes over time and becomes known as the adjusted basis. The adjusted basis can be increased by capital improvements made to the property and is reduced by depreciation deductions taken during the ownership period and other factors. Generally, the cost of adding capital improvements having a useful life of more than one year is added to the adjusted cost basis and are referred to as a capital expense and must be capitalized and depreciated over multiple years. An improvement includes enhancements that add value to the property, increases its useful life or adapts the property to a new use. Capital improvements can include room additions, new bathrooms, new roofs, decks, fencing, wiring upgrades, driveways, walkways, plumbing upgrades, and kitchen upgrades. The IRS uses the categories below to define a capital expense which must be depreciated: Improvements: A taxpayer must capitalize any expense made to improve an investment property. An expense is for an improvement if it results in a betterment to the property, restores the property or adapts the property to a new or different use. Betterments: Expenses that may result in a betterment to a property include expenses for fixing a pre-existing defect or condition, enlarging or expanding the property or increasing the capacity, strength or quality of the property. Restoration: Expenses that may be for restoration include expenses for replacing a substantial structural part of a property, repairing damage to a property as a result of a casualty loss or rebuilding the property to a like-new condition. Adaptation: Expenses that may be for adaptation include expenses for altering the property to a use that is not consistent with the intended ordinary use of the property when initially purchased or held for investment. Costs that can be deducted as current expenses are amounts paid for incidental repairs and routine maintenance which are not added to the cost basis. Repairs are usually one-off fixes that help keep the property in good working condition and habitable. A real estate investor can deduct the cost of minor repairs from the current year s tax liability, but not from their capital gain tax liability. The IRS clarifies in the 1040 Schedule E Instructions that repairs in most cases do not add significant value to the property or extend its life. For more information on basis and adjusted cost basis, read IRS Publication 551, Basis of Assets. For more information about 1031 exchanges and how they can help Washington investors acquiring better performing real estate investment properties without paying any capital gain taxes, contact the author. Annamarie Kooning is the Washington Division Manager at Asset Preservation, Inc., a national 1031 exchange company and frequent instructor at SKCR. Contact her directly or annamarie@apiexchange.com. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 7 of 15

8 Researchers develop computer model to regulate city traffic and ease gridlock Two researchers in Pullman, Washington have developed a computer algorithm to regulate traffic flow in and around urban areas. The technology could help prevent gridlock and reduce travel times on congested city streets by nearly 30 percent. The groundbreaking research, published in the August issue of Transportation Research Part C: Emerging Technologies, was led by led by Ali Hajbabaie Ph.D., assistant professor in the department of Civil and Environmental Engineering at Washington State University, and graduate student Rasool Mohebifard. The computer model enables estimating the traffic needs for individual metering gates on city streets. The system is dynamic, meaning it is able to update the metering estimate based on increases or decreases in traffic. Hajbabaie said researchers have developed solutions for city streets gridlock by determining how much traffic needed to be reduced overall in an urban grid, but there has been no way to determine how much of incoming traffic needed to be stopped at a given entry point. The WSU researchers used mathematical techniques to optimize traffic flow, finding the optimal percentage of incoming traffic that should be stopped at each gate. With optimization, researchers have to maximize or minimize quantities while satisfying some necessary conditions, explained Hajbabaie. Traffic metering technology to regulate traffic flows has been around for years, perhaps most notably for regulating freeway entrances in congested areas. In developing their system to better manage traffic on city streets, the professor and student aimed to maximize the number of vehicles passing through a street grid while making sure it is not oversaturated, causing gridlock. The idea is that at a certain traffic volume, we re going to have gridlocks unless we can intelligently regulate flow of traffic into an urban street network, said Hajbabaie. The researchers, whose work was funded by a grant from the U.S. Department of Transportation, have tested their model using traffic simulations on a computer and calibrated it with real world traffic data. Dr. Hajbabaie joined WSU in His research focuses on developing data driven methodologies to improve operations, safety, and sustainability of current and next-generation transportation systems. Realtor.com survey underscores importance of schools to homebuyers Schools are sacrosanct for most house-hunters, according to a survey by realtor.com. Seventy-eight percent of buyers who currently live in their preferred school district had to compromise to get there. An even larger number of buyers with children 91 percent said that school boundaries were important or very important. By contrast, only about a third (34 percent) of those without children indicated school boundaries were important or very important. Realtor.com surveyed 1,000 people in July who closed on a home earlier this year. While buyers understand that they re going to have to make some compromises to find a home in today s market, schools remain non-negotiable on their home wish list. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 8 of 15

9 Survey respondents were asked about features they would forgo in order to live in their preferred school district. Topping the list was a garage, with 19 percent saying they would give up that amenity. Other features they named were a large backyard (18 percent), an updated kitchen (17 percent), desired number of bedrooms (17 percent), and an outdoor living area (16 percent). Researchers noted the desire for particular schools varied significantly by life stage and age. While school boundaries were important or very important to a preponderance of successful buyers with children (91 percent), only 34 percent of buyers without children rated them similarly. Eighty-four percent of those between 35 and 54 years old, and slightly more (86 percent) of those years old, indicated school boundaries were important, compared to 37 percent of buyers 55-plus. More than half of older buyers 55-plus said school boundaries were unimportant or very unimportant. Majority of new houses are part of a homeowners association More than two-thirds of newly built single family homes in both the West and South are in a Homeowner Association, according to a report from the National Association of Home Builders (NAHB). Across the U.S., 61 percent of new single family houses were in an HOA, up from 46 percent in Share of 2017 New Single-Family Houses in a Homeowners Association National Average; 61% Both the Midwest, at 47 percent, and Northeast, with 29 percent, lagged the national average, which has experienced a 15 percent increase in the past eight years. The West topped all regions in comparing the proportion of new homes in a HOA, edging out the South. Of the 180,000 new houses that were completed in 2017, 68 percent (123,000) of them are part of a homeowners association. The share climbed 19 percent from Source: Eye on Housing (National Association of Home Builders) The South claimed top spot for production, with 435,000 houses completed during Of these 291,000 (67 percent) are governed by a HOA. NAHB based its findings on data from the Census Bureau s Survey of Construction. The Census Bureau defines community or homeowners associations as formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 9 of 15

10 PSRC welcomes comments on massive transportation program Public comment on a $6.2 billion draft regional Transportation Improvement Program may be submitted until October 25, according to the Puget Sound Regional Council (PSRC). Comments may be made by mail, or in person at either of two upcoming meetings. (see box) PSRC is recommending projects to receive about $533 million in PSRC funds. There are 377 projects in the TIP, which PSRC Executive Director Josh Brown describes as an important milestone in catching up with the rapid growth the region is experiencing. He noted more than 70 percent of these projects are moving forward with construction phases with funding by federal, state, regional, and local sources. Detailed information and the complete list of projects plus an interactive map may be viewed online at psrc.org. Projects may be viewed by location, project title or various other criteria. PSRC s executive board is scheduled to approve the final Transportation Improvement Program on October 25. PSRC develops policies and coordinates decisions about regional growth, transportation and economic development planning. More than 80 entities are part of PSRC, including King Pierce, Snohomish, and Kitsap Counties, ports, transportation agencies, and tribal governments. How to submit comments: Mail: Puget Sound Regional Council ATTN: Kelly McGourty 1011 Western Avenue, Suite 500 Seattle, Washington tipcomment@psrc.org In Person: October 11 at 9:30 during the Transportation Policy Board Meeting or October 25 at 10 am during the Executive Board Meeting. Both are held at PSRC, 1011 Western Avenue, Suite 500, Seattle. Survey reveals declining brand loyalty Shoppers may set out to buy a particular brand, but three out of every four (76 percent) said they are likely to change their mind as they shop, according to a new survey on brand loyalty. Survey respondents were asked to rank various factors they consider when making a purchase. Value topped the list, with 83 percent saying value based on price paid was the No.1 factor. Nearly as important was quality, at 80 percent. Reputation ranked first for 47 percent of those who took part in the survey, followed by service at 39 percent. Asked how they typically learn about products and services, the clear favorite was online browsing, favored by 79 percent of consumers. Word of mouth followed at 56 percent, edging out friends social media posts, which influenced purchase decisions for about half (49 percent) of consumers. Nearly one-third (30 percent) of respondents said their decisions are influenced by a brand or retailer they follow on social media. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 10 of 15

11 Six of every 10 consumers who took part in the poll said they have at least considered purchasing a product after seeing a post about it from a social media influencer. The recent study involved about 1,000 participants representing a range of household incomes, geographic locations, age and gender across the U.S. Ad-tech company Adtaxi analyzed the data. Sammamish singled out as a Best Place to Live Sammamish was the only city in Washington state, and one of only three cities in the Northwest, to earn a spot on MONEY s 50 Best Places to Live rankings. The city, with approximately 65,000 residents, was ranked No. 9. Frisco, Texas placed first. For more than 30 years, MONEY has evaluated cities on various criteria. Unlike last year s focus on small towns, the 2018 list compared places with populations of 50,000 or more. This year, in partnership with realtor.com, MONEY considered more than 135,000 data points to uncover spots that offer a winning mix of affordability, charm, and economic strength. The data points covered economic health, public school performance, local amenities, housing, and cost of living. Place with high crime rates (defined as more than double the national rate), depressed income (less than 85% of the state median), and lack of racial diversity were disqualified. Despite its high ranking, Sammamish drew some criticism about its limited options for first-time buyers and atrocious commutes. Infrastructure such as roads has not been improved at the same pace as the housing expansion, MONEY noted. According to the city s website, Sammamish is home to highly educated residents with 45 percent having a bachelor s degree (versus 30 percent countywide) and 28 percent possessing a graduate or professional degree. About 23 percent of the workforce is classified as software or technology workers. More than half the households (55 percent) have children, and nearly three-quarters (73 percent) report a median household income of at least $100,000. Sammamish, which incorporated in 1999, anticipates 3,800 new households and 2,000 more jobs by In mid-september, the City Council voted to renew a building moratorium for an additional six months, but added some key exceptions, in part so the council could address transportation concurrency and traffic impacts related to development and growth. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 11 of 15

12 The Best Places to Live designation follows other awards bestowed upon Sammamish, including being named first on a Forbest/Nextdoor list of America s Friendliest Towns in 2012, and 13th on NerdWallet s 2016 list of Best Small Cities for Families. No other city in the Pacific Northwest made the top 10 list. Hillsboro, Oregon was No. 39 and Boise, Idaho was No. 46 on the latest Best Places to Live list. News In Brief With home values rising by an average of more than $16,000 in the first quarter of 2018 but affordability dropping as mortgage rates get higher, the personal-finance website WalletHub today released its report on 2018 s Best Real-Estate Markets as well as accompanying videos. To determine the most attractive real-estate markets in the U.S., WalletHub compared 300 cities across 22 key metrics. The data set ranges from median home-price appreciation to home sales turnover rate to job growth. Health of Bellevue s Real-Estate Market (1=Best; 150=Avg.): 31st % of Homes with Negative Equity 10th Avg. Days Until Sale 88th Job Growth Rate 8th Foreclosure Rate 1st % of Delinquent Mortgage Holders 29th Number of Unsold Homes Owned by Banks (REOs) 13th Population Growth Rate Bellevue ranks 9th overall and 6th among small cities. For the full report, please visit: A new report says Seattle-area drivers are among some of the worst in the 200 largest US cities. Allstate released its annual America s Best Drivers Report. Seattle drivers ranked 179 out of 200, up from last year s rank of 181. Tacoma came in at 167 and Bellevue at 157. Portland ranked below Seattle at 190. The report is based on how frequently crashes happen in each city. The report says the safest cities in America are Brownsville, Texas, Kansas City, Kansas, and Boise, Idaho. Miami was most improved from last year, moving up to 86 from 123 in The last city on the list coming in at number 200 is Baltimore, Maryland. To see the full report, click here. Almost 29 cents of every dollar Seattleites earn these days is going to pay off their mortgage, according to a new study by Zillow. It s the 6th highest mortgage affordability rate in the U.S., Zillow says. It s also well above the national average of 17.5 percent and the historical average of 21.2 percent. Zillow says the rising rates Seattle was pegged at just under 24 percent in late 2017 is due largely to incomes not keeping up with the rising cost of housing Serving More Than 29,000 Real Estate Professionals in the Northwest Page 12 of 15

13 and mortgage interest rates. The highest city was the San Jose, California market where buyers on average spend 53.5 percent of their income on their mortgage. Average home prices in the Seattle area have skyrocketed by nearly 100 percent in the six-year period after the post-recession housing market hit bottom in 2012, says a new report released Thursday. That was the steepest price hike among the largest 20 cities in the U.S. and well above the national average, according to the study released by the real estate sales and analysis site Trulia.com. The report found that home values in the nation s largest metro areas increased by an average of 53.1 percent from 2012 through But in the Seattle metro area, home values shot up by 99.6 percent. A major factor fueling the sharp home price increases in Seattle - and other metro areas that have experienced soaring home prices - has been the rate of population increase exceeding the pace of new home construction. In the Seattle metro area, the population has grown by two people for each home construction permit issued from 2012 through 2017, which forces home prices upward. In addition, employment has ballooned by 12.4 percent during the same period in Seattle, the report says. More generally, the new report found that home prices in urban areas increased by more than double the rate as rural areas percent in cities as compared with 27.9 percent in rural counties. The reason: many metro areas have seen robust growth in jobs while many rural areas have stagnated. In the 100 largest metro areas, population expanded 4.8 percent, while population in rural counties fell 1.0 percent. The average daily commute is getting longer in the Seattle metro area, even though more people are carpooling or using public transportation to get to work, according to newly released U.S. census data. The average Seattlearea commuter spent 31 minutes getting to work last year, compared with 28.6 minutes four years earlier - a statistically significant increase, says the U.S. Census Bureau. That s about four minutes longer than the national average and puts Seattle in ninth place among major U.S. metropolitan areas with the longest average travel times to work. It also means the average Seattle-area commuter spends nearly 11 days traveling to and from work over the course of the year, assuming a two-way commute for 50 five-day work weeks in a year. The increase in Seattle-area commuting times comes even though the number of people who drove alone to work decreased from 69.7 percent of the workforce to 67.6 percent over the same four-year period. Meanwhile, the number of workers carpooling to work increased from 9.9 percent of the workforce to 10.5 percent, while the number of workers using public transportation rose from 9.3 percent to 10.1 percent. Also, the number of people working from home grew from 5.4 percent of the workforce to 6.3 percent. Part of the explanation for longer commute times could simply be that there are more people commuting. The Census Bureau estimates that nearly 2 million people (1,997,545 to be exact) commuted to work in the Seattle metro area last year, compared with 1,797,681 people four years earlier. Nationally, the Census Bureau estimates that 76.4 percent of workers drive alone to their workplace, while 8.9 percent carpool and 5 percent use public transportation. The metro area with the longest commute in the U.S. is (no surprise) New York City, where workers spend an average of 37 minutes getting to work each day. It is followed by Washington, D.C. (34.9 minutes); San Francisco (34.4 minutes); Riverside/San Bernardino, Calif. (32.7 minutes) and Atlanta (32.3 minutes). It s not hard to notice around Seattle that the economy is booming, and a new study by WalletHub agrees. Their research reports Seattle is now the third-fastest growing economy in a large city in America, coming in just behind Austin and Miami. The agency says they used 15 metrics studying each city s sociodemographics, jobs, the economy and only counted data collected from inside the city limits, ignoring the surrounding area. Seattle had its highest scores in population growth, median household income growth, job growth and working age population growth. It fared worst in poverty rate decrease and growth in number of businesses. Seattle gets its No. 3 ranking for cities with more than 300,000 population. Overall, even counting small cities, Seattle ranked 25th. Among large cities, Cleveland rated the worst. Serving More Than 29,000 Real Estate Professionals in the Northwest Page 13 of 15

14 Calendar of Events Through November 5, 2018 DATES EVENT TIME LOCATION CONTACT Seattle King County REALTORS For updates visit 10 / / 2018 WR Leadership Suncadia / 17 / 2018 Realtor Advantages 9:30 am - 12:30 pm SKCR / 19 / 2018 Board Retreat 8:30 am - 3:00 pm SKCR / 24 / 2018 MBAKS Symposium 7:30 am - 9:30 am Meydenbauer / / 5 / 2018 NAR Annual Meeting Boston, MA Serving More Than 29,000 Real Estate Professionals in the Northwest Page 14 of 15