diff --git a/src/lib/select/select-animations.ts b/src/lib/select/select-animations.ts
index 238341138c39..a2607dc34c21 100644
--- a/src/lib/select/select-animations.ts
+++ b/src/lib/select/select-animations.ts
@@ -20,14 +20,15 @@ import {
  * depending on the text direction of the application.
  */
 export const transformPlaceholder: AnimationEntryMetadata = trigger('transformPlaceholder', [
-  state('normal', style({
-    transform: `translate3d(0, 0, 0) scale(1)`
-  })),
   state('floating-ltr', style({
-    transform: `translate3d(-2px, -22px, 0) scale(0.75)`
+    top: '-22px',
+    left: '-2px',
+    transform: `scale(0.75)`
   })),
   state('floating-rtl', style({
-    transform: `translate3d(2px, -22px, 0) scale(0.75)`
+    top: '-22px',
+    left: '2px',
+    transform: `scale(0.75)`
   })),
   transition('* => *', animate(`400ms cubic-bezier(0.25, 0.8, 0.25, 1)`))
 ]);
diff --git a/src/lib/select/select.html b/src/lib/select/select.html
index f95dc6b1c6e8..b5efc703e8b5 100644
--- a/src/lib/select/select.html
+++ b/src/lib/select/select.html
@@ -1,5 +1,6 @@
 <div class="md-select-trigger" overlay-origin (click)="toggle()" #origin="overlayOrigin" #trigger>
-  <span class="md-select-placeholder" [@transformPlaceholder]="_getPlaceholderState()"> {{ placeholder }} </span>
+  <span class="md-select-placeholder" [class.md-floating-placeholder]="this._selected"
+   [@transformPlaceholder]="_placeholderState"> {{ placeholder }} </span>
   <span class="md-select-value" *ngIf="selected"> {{ selected?.viewValue }} </span>
   <span class="md-select-arrow"></span>
 </div>
diff --git a/src/lib/select/select.scss b/src/lib/select/select.scss
index 60f1a1e49e68..2dbe50a743d0 100644
--- a/src/lib/select/select.scss
+++ b/src/lib/select/select.scss
@@ -30,11 +30,22 @@ md-select {
 }
 
 .md-select-placeholder {
+  position: relative;
   padding: 0 2px;
   transform-origin: left top;
 
+  &.md-floating-placeholder {
+    top: -22px;
+    left: -2px;
+    transform: scale(0.75);
+  }
+
   [dir='rtl'] & {
     transform-origin: right top;
+
+    &.md-floating-placeholder {
+      left: 2px;
+    }
   }
 
   // TODO: Double-check accessibility of this style
diff --git a/src/lib/select/select.spec.ts b/src/lib/select/select.spec.ts
index 1c0dddabc878..da8742635899 100644
--- a/src/lib/select/select.spec.ts
+++ b/src/lib/select/select.spec.ts
@@ -456,30 +456,35 @@ describe('MdSelect', () => {
       trigger = fixture.debugElement.query(By.css('.md-select-trigger')).nativeElement;
     });
 
-      it('should float the placeholder when the panel is open', () => {
-        expect(fixture.componentInstance.select._getPlaceholderState()).toEqual('normal');
+      it('should float the placeholder when the panel is open and unselected', () => {
+        expect(fixture.componentInstance.select._placeholderState)
+            .toEqual('', 'Expected placeholder to initially have a normal position.');
 
         trigger.click();
         fixture.detectChanges();
-        expect(fixture.componentInstance.select._getPlaceholderState()).toEqual('floating-ltr');
+        expect(fixture.componentInstance.select._placeholderState)
+            .toEqual('floating-ltr', 'Expected placeholder to animate up to floating position.');
 
         const backdrop =
           overlayContainerElement.querySelector('.md-overlay-backdrop') as HTMLElement;
         backdrop.click();
         fixture.detectChanges();
 
-        expect(fixture.componentInstance.select._getPlaceholderState()).toEqual('normal');
+        expect(fixture.componentInstance.select._placeholderState)
+            .toEqual('', 'Expected placeholder to animate back down to normal position.');
       });
 
-      it('should float the placeholder when there is a selection', () => {
-        trigger.click();
+      it('should float the placeholder without animation when value is set', () => {
+        fixture.componentInstance.control.setValue('pizza-1');
         fixture.detectChanges();
 
-        const option = overlayContainerElement.querySelector('md-option') as HTMLElement;
-        option.click();
-        fixture.detectChanges();
+        const placeholderEl =
+            fixture.debugElement.query(By.css('.md-select-placeholder')).nativeElement;
 
-        expect(fixture.componentInstance.select._getPlaceholderState()).toEqual('floating-ltr');
+        expect(placeholderEl.classList)
+            .toContain('md-floating-placeholder', 'Expected placeholder to display as floating.');
+        expect(fixture.componentInstance.select._placeholderState)
+            .toEqual('', 'Expected animation state to be empty to avoid animation.');
       });
 
       it('should use the floating-rtl state when the dir is rtl', () => {
@@ -487,7 +492,7 @@ describe('MdSelect', () => {
 
         trigger.click();
         fixture.detectChanges();
-        expect(fixture.componentInstance.select._getPlaceholderState()).toEqual('floating-rtl');
+        expect(fixture.componentInstance.select._placeholderState).toEqual('floating-rtl');
       });
 
       it('should use the ltr panel state when the dir is ltr', () => {
diff --git a/src/lib/select/select.ts b/src/lib/select/select.ts
index 90af646afe68..60757fac126b 100644
--- a/src/lib/select/select.ts
+++ b/src/lib/select/select.ts
@@ -71,6 +71,9 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
   /** Whether the select is disabled.  */
   private _disabled: boolean = false;
 
+  /** The animation state of the placeholder. */
+  _placeholderState = '';
+
   /** Manages keyboard events for options in the panel. */
   _keyManager: ListKeyManager;
 
@@ -163,12 +166,16 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
     if (this.disabled) {
       return;
     }
+    this._placeholderState = this._isRtl() ? 'floating-rtl' : 'floating-ltr';
     this._panelOpen = true;
   }
 
   /** Closes the overlay panel and focuses the host element. */
   close(): void {
     this._panelOpen = false;
+    if (!this._selected) {
+      this._placeholderState = '';
+    }
     this._focusHost();
   }
 
@@ -182,7 +189,7 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
       // the select's child options have been created. It's necessary to call
       // writeValue() again after the options have been created to ensure any
       // initial view value is set.
-      this._ngZone.onStable.first().subscribe(() => this.writeValue(value));
+      this._ngZone.onMicrotaskEmpty.first().subscribe(() => this.writeValue(value));
       return;
     }
 
@@ -240,15 +247,6 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
     return this.trigger.nativeElement.getBoundingClientRect().width;
   }
 
-  /** The animation state of the placeholder. */
-  _getPlaceholderState(): string {
-    if (this.panelOpen || this.selected) {
-      return this._isRtl() ? 'floating-rtl' : 'floating-ltr';
-    } else {
-      return 'normal';
-    }
-  }
-
   /** The animation state of the overlay panel. */
   _getPanelState(): string {
     return this._isRtl() ? `${this._transformOrigin}-rtl` : `${this._transformOrigin}-ltr`;
@@ -340,7 +338,9 @@ export class MdSelect implements AfterContentInit, ControlValueAccessor, OnDestr
   private _onSelect(option: MdOption): void {
     this._selected = option;
     this._updateOptions();
-    this.close();
+    if (this.panelOpen) {
+      this.close();
+    }
   }
 
   /** Deselect each option that doesn't match the current selection. */