If you read about Puget Sound Businesses, the vast majority are growing at rapid rates and are challenged to find enough talent to hire. The housing market shortage, increasing population, and backlogged auto traffic has led to an increasing number of employees allowed to work from home.
There is no reason to assume that there will be a downturn in real estate values in our area! Some parts of the Country are experiencing a softening of prices, but for the most part, they were markets driven by speculation or short-term shortages of inventory. Changes in the mortgage interest tax deductions are thought to have caused a slowing of appreciation as much as 4% in some areas of the Country.
Western Washington State
In Western Washington, our continued population growth and an increasing number of high paying jobs will continue to feed a healthy housing market. It is still a sellers’ market for homes that are priced right and are ready to sell.
The challenge in a changing market is to recognize which segments are changing and to respond proactively. Let’s say your home is in a price range in which the inventory is growing and homes are sitting on the market. You will need to show to be a better value than the competition. This may or may mean the lowest price in the category… it has to be the BEST VALUE. If it has features that have broad appeal, then the price can be higher. There are also features with very limited appeal such as Formica countertops, hollow doors, or messy neighbors, then you will have to price accordingly.
Do you want to know the value of your home? Have a FULL-TIME real estate professional prepare a market analysis. Try to look at the other homes objectively. You may not like granite, but intuitively you know that most people prefer it.
As buyers, be aware that the market is still healthy. Because we have so many retirees in our market, a move is often discretionary. Sellers don’t have to sell, just like most buyers (except military and job transfers which are the minority) must purchase a home right now.
Our market is healthy and growth will continue, only at a slower pace which is healthy for the economy. Real estate has historically been an excellent investment and represents most of the individuals’ acquired wealth.
Please contact us if we can help with your real estate needs.