HOUSING PRICES - PACIFIC NORTHWEST

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SEATTLE MSA

HPI Price Walk:

2000 to Peak: Home prices nearly doubled - up 92%, or 8.8% annualized.

Peak to Trough: Decline of 33%, or (8.7)% annualized.

Trough to COVID: Home prices surging again; up 9.0% annualized.

COVID to Fed Tightening: Home prices surge 20.5% annualized.

Fed Tightening: Home prices fall (10.2)% annualized.

Fed Pause to Current: Home prices fall (3.9)% annualized.

SEATTLE: HOME AFFORDABILITY

HOME AFFORDABILITY

 Home Affordability is significantly more costly than U.S. averages.

Home "P/E" Ratio = 5.2X.

 Median home purchase is 5.2X median family income compared to 4.2X for U.S.; takes ~5.2 years of a Seattle area family's income to earn the sale price of the median priced home compared to ~4.2 years on average across the U.S.

NAHB HOI Index = 21.2%.

 21% of families can afford median priced home (NAHB HOI)

PORTLAND MSA

HPI Price Walk:

2000 to Peak: Home prices nearly double and up 87%, or 8.3% annualized.

Peak to Trough: Decline of 31%, or (7.9)% annualized.

Trough to COVID: Home prices surging again; up 8.0% annualized.

COVID to Fed Tightening: Home prices surge 15.6% annualized.

Fed Tightening: Home prices fall (3.9)% annualized.

Fed Pause to Current: Home prices fall (7.2)% annualized.

PORTLAND: HOME AFFORDABILITY

HOME AFFORDABILITY

 Home Affordability is more costly than U.S. averages.

Home "P/E" Ratio = 4.4X.

 Median home purchase is 4.4X median family income compared to 4.2X for U.S.; takes ~4.4years of a Portland area family's income to earn the sale price of the median priced home compared to ~4.2 years on average across the U.S.

NAHB HOI Index = 18.2%.

 18% of families can afford median priced home (NAHB HOI)