Times are different. We are not in a recession and we’re not in a housing bubble; this is really the way things are and prices are booming…according to Matthew Gardner, a local economist.
The dynamics that led to the last housing collapse and recession are not in play right now. Borrowers are not buying more than they can afford and home building is at a sustainable pace. There are also more first-time home buyers in the market than at any time in the last 10 years.
While there is a lack of housing inventory at times, there is strong demand. Most buyers also have great credit now and are not over-leveraging themselves. Those factors combined with low-interest rates create a dynamics for a steady climb and a healthy, balanced market.
Locally and nationally, the unemployment rate continues to drop and many are returning to work after previously having given up even looking. Wage growth has been a bit stagnant, so Matthews says it’s time to ask for a raise! People are still cautious and that’s probably what’s keeping the market well-balanced. No one is haphazardly applying for loans, quitting jobs, or buying homes they can’t afford.
So are there any negative outlooks in today’s economy? Many millennials have high amounts of student debt and some wish baby-boomers would retire, as many are maintaining their jobs well after 65. We’re also not seeing the transfer of wealth between generations because we’re living longer.
So what does all this mean? It’s a great time to buy or sell property in the Seattle area!
Being successful in Seattle’s competitive market, however, requires the assistance of an experienced real estate professional. Feel free to contact me for answers to your questions and advice that can help you achieve your real estate goals.