State of the Market - Seattle Area Real Estate 2019
I recently attending an incredible economic forecasting seminar entitled “State of the Market - Tomorrow’s Market Based on Historical Perspectives” presented by Denise Lones CSP, M.I. R. M. Denise uses national, regional, and local data to show how the market got to where it is today, and where it is headed in the coming year. Year after year Denise has demonstrated uncanny accuracy with her real estate predictions. She has shared this info with top real estate professionals - so that we can share this with you!
In a nutshell - it has been predicted - the Pacific Northwest Market will remain strong. Denise Lones did not come to this determination lightly. I have photos of nearly 100 slides of the presentation illustrating the many economic factors to back this up. Contact me today and I can take you through the information one-on-one. I would love to talk with you about it, share this information, answer any questions you have, and talk with you about your real estate goals.
Denise said, “The 2019 real estate market will return to a STRONG STABLE market after experiencing 3 years of a STERIOD market”. We’ve all been hearing for months that the market is having a bit of a correction. The intense escalations were never expected to last as long as they did. The future looks bright in a continually strong, but more healthy increasing real estate market.
Here are some of the highlights from the 3+ hour presentation that support the prediction of a strong Pacific Northwest / Seattle area real estate market - according to Denise Lones:
Home are still in HIGH demand
Backlog of Buyers will return to the market in the spring
Buyers finally have selection and better pricing BUT interest rate increases have increase buying costs
Sellers have to sell at “Market Value” not “Steroid Value”
We hit the high point of the house appreciation run
House prices will decelerate in certain markets (still appreciating, but at a slower, more healthy rate)
Rents are high making investors happy to continue to invest, which also encourages renters to become owners
The economy is strong
Foreign investment from China & Canada us higher that it has ever been (and that impacts our region more than any other US area due to the Port of Seattle.
Strong U.S. & Washington labor markets
For anyone still not convinced… Denise also shared with us 4 Reasons not to fear a housing crash
Foreclosures hit an 11 year low (inventory deficit)
New construction not keeping up with demand (inventory deficit) - You may be thinking about all the cranes… however evidence shows the current pace of building is not enough to meet the demand with a pace deficit of 2.5 million units! * And you might wonder about possible job loss, i.e. Amazon moving jobs… The facts are that Virginia & New York are expected to have 2,500 jobs per year over a 10 year period resulting in 25,000 jobs to each location. However, the amount of new jobs continuing to come into Seattle will still far exceed that, continuing to increase our areas housing demand.
Homeowners have high equity in their homes. Almost 48% of all the homeowners have 50% equity or more in their homes due to the past 5 years of high price appreciation. Plus many people chose to remodel or add-on over the last 10 years than to buy/sell. And these homeowners are cashing out less (keeping their equity in tact) when refinancing.
Lending standards are tougher (in order to make sure owners are well qualified)
This is a brief summary… What do you think and what information do you have to share with me? I look forward to discussing this information with you one-on-one. Call, text, or contact me via email or through the web today! Thank you, Jennifer 206-550-1676
Here are some reasons why our Seattle area / Pacific Northwest / Puget Sound area is predicted to continue to have a strong economy. According to Denise Lones:
Washington State ranks first in the U.S. for exports per capita
Approximately 8.8% of Washington State’s private sector jobs are lined to export manufacturing
Seattle is a leading trade partner with Japan and China
Flights from SeaTac Airport reach Asia 1-2 hours faster than from LA or San Diego
Seattle is the Gateway to Asia (Deepwater Ports and International Air Hub)
Seattle is one of the leading trade hubs on the West Coast
The Seattle-Tacoma-Everett port region is the third largest container complex in the United States, and serves not on the Pacific Northwest and major cities of the Midwest, East Coast and Canada.
Major Air Hub enables rapid cardo shipments worldwide
Major trucking and rail routes allow for fast shipping to California as quickly as overnight, and to the East Coast in as few as five days
Additionally - The Seattle area has:
Aggressing population growth (twice the national rate)
Investors flooding Pacific Northwest
Abundance of investment dollars available for development
Seattle has growing population and is expected to gain 29,000 new residences per year for the next 4 years
What about condos? - Condominiums are also predicted to remain strong - leveling off. Condos are best loved for their location, location, location and are in high demand from Baby Boomers, as well as foreign investors.
Would you like more information or do you have some you would like to share with me?
Contact me today! Thanks, Jennifer