Where’s My Crystal Ball?

Dear friend,

Questions are circling about the future of our real estate market. Will prices continue to go up? Can people afford the new prices? What happens if interest rates rise? Should I sell now, should I buy? Will the market crash again? Great questions! For a discussion about factors that influence our regional market please see the attached list.

For a more in-depth view consider attending our upcoming seminar featuring renowned economist Matthew Gardner. Matthew is an Oxford graduate with over 25 years professional experience in regional economics and market analysis.

You are invited!

Hear renowned economist Matthew Gardner discuss issues affecting our economy and local real estate market. Informative and entertaining! Bring your questions.

When: October 28, 2015 at 6:30pmclip_image004

Where:  Inglewood Golf Club,

6505 Inglewood Road NE, Kenmore

Appetizers and drinks served at 6:30PM

Limited seating please RSVP

Linnea at Linnea@Windermere.com or 425-765-8740

 

Economic factors affecting Real Estate throughout Western Washington.

Fundamentally, all markets are subject to external factors such as supply vs. demand and consumer confidence. History teaches us that real estate goes through natural cycles of ups and downs depending on regional and national influences. Housing trends tend to take longer to develop than commodities and stocks. Our current market influences are very positive for housing pricing and affordability.

Ø Supply. The Puget Sound region is lagging in supply of homes for sale forming a “seller’s market” fueling upward pressure on pricing. Most markets in our area are seeing more than 10% year over year increases.

Ø Demand. In-migration is very strong. The availability of jobs and livability of our area are bringing more and more people to our market; all need a place to live. The construction of apartments is also lagging so renters are also faced with a short supply an increasing rents.

Ø Construction. Decreased availability of construction money has suppressed home construction in our area for the past several years. Builders have just recently been able to start increasing output. Construction cycles take a long time to develop to create new finished housing. New starts are still “behind the curve” of meeting our needs for new homes.

Ø Affordability. When housing prices get too high, affordability becomes a limiting factor for further increases. According to S&P/Case-Shiller
the Puget Sound area is one of the more affordable major markets based on average earnings compared to housing cost.

Ø Interest rates. Most buyers are concerned with their monthly payment. With low interest rates they can afford more expensive homes. Modest increases in mortgage rates are not likely to discourage home buying due to an improving economy and higher wages.

Ø Employment. Our aerospace, technology and bio-tech industries have been great producers of higher paying jobs. Unemployment remains one of the lowest among major markets.

Ø Buyer resurgence. The last bubble burst scared many qualified buyers out of the market for a while. They are now returning. Homeowners who lost their homes due to foreclosure or short-sales are also looking to get back in the market.

Courtesy of Linnea Jones

Windermere Real Estate / Northeast, Inc.

425-765-2211 Linnea@Windermere.com