Are you wondering if Vancouver, Washington has real potential to see growth during 2021? In this guide, we cover everything including current performance, forecasts, and trends so you could feel more confident in the real estate market
How is the Vancouver, WA Market Doing in 2021?
The Vancouver real estate market will remain healthy in 2021. Our unique piece of Washington has a whole list of benefits that will continue to drive home purchases.
Located at the southern end of the state, on the Columbia River, Vancouver is considered a suburb of Portland, Oregon – with benefits! One advantage of living across the state line? Washington’s lack of a state income tax, and Vancouver’s flat property tax rate.
Clark County combines first-rate access to outdoor recreation, a thriving entertainment and dining scene, and a sense of place: Vancouver is one of Washington’s oldest cities.
Market conditions are still solid, coming out of 2020. Single-family homes are by far the most active in sales, with stable prices. Buyers can expect that homes will receive multiple offers, with the hottest listings selling for up to 3% over the asking price.
Market Forecasts for 2021
All real estate market indicators show that the Vancouver housing market will remain healthy throughout 2021. Looking at January, Zillow data shows that 330 homes sold, with a median price of $394,500.
Compared to the previous year, the average 2020 sale price was up more than 11%, even during pandemic conditions. The biggest difference? Time on market. With homes selling after only 11 days on the market, agents were discovering that time was of the essence, that coming in over the asking price was advisable, and that it was a seller’s market.
Expect to see more of the same as the year progresses. As of January 2021, the average sale price per square foot in Vancouver was $229, up 10.6% since last year.
Just for comparison, the average home or apartment rental price for the area is $1,385, for approximately 930 sf – a 4% increase compared to the previous year. Overall, buying a home in Vancouver simply makes good sense now, versus renting in a tight and popular market.
What’s ahead for the Vancouver, WA housing market? Good times ahead, as more and more people discover the sizable advantages to settling down in this perfectly located city. Compared to Seattle, where the average home price is $812,108, Vancouver shows incredible value. Looking back at 2020, the numbers tell a story of a healthy, but stable real estate situation, with continuing demand from buyers.
You can expect that any home purchase will retain value and that prices will continue on a modest uphill trend. Recently, SmartAsset, a financial software and data company ranked Vancouver, Washington as the seventh healthiest real estate market in the nation. Let’s break down those impressive numbers!
As of January 2021, sales statistics have shown that Vancouver is a true seller’s market – with more interested home buyers than there are houses on the market. Although the demand pushes up sales prices slightly, the overall take is that Clark County purchases are at the sweet spot of affordability and desirability. There were just under 8700 homes sold last year, for a median price of $338,100.
The Best Neighborhoods
Determining the best neighborhood for your relocation to Vancouver, WA can become a bit of a puzzle in the first stages. Just like any area, location is everything! Depending on your individual needs, factors like schools (There are 28 elementary schools, 28 middle schools, 30 high schools, and 17 private & charter schools in Vancouver), recreation, low crime rate, commuter friendliness, and access to amenities are all part of determining what part of Vancouver you’ll want to call home.
77 neighborhoods in Vancouver to choose from can be an intimidating number! However, some of the best are Fisher’s Creek, with highly rated schools and an abundance of parks, Shumway, which is walkable and near downtown, Arnada, as one of the oldest neighborhoods in the city, Lake Shore, with lake access and popular public schools, and Cascade Highlands, with a quiet suburban feel and spectacular views of Mt. St Helens and Mt. Hood.
Investing in Vancouver, WA
Real estate investments in Vancouver offer a checklist of the desirable traits any potential buyer should look for. Just to cover the basics, savvy investors should consider long-term returns, affordability, a pool of eager renters, and positive growth trends over the last few years.
Vancouver real estate investment, by all these indicators, is recommended. As the fourth largest home market in the state of Washington, it has nowhere to go but up. Average home prices on the Vancouver multiple listing service are a robust $100K below the comparable homes in neighboring Portland. The affordability drives demand from renters who work in the area – a full 40% of Vancouver residents rent.
This pool of tenants is also boosted by the student population: Washington State University – Vancouver is the second largest Washington State campus, with more than 3,000 enrollees. Gateway Seminary is another campus that has a student population of more than 2,000.
With the steady increase in home prices over the last 3 years, a seller’s market, and constant demand, the Vancouver real estate market is a prime opportunity for investors.