Three key factors can help you understand our uncertain market.
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These are uncertain times for the real estate market, and if you’re like most people, you’re wondering what you should do. Some sources say we’re in a housing bubble, while others say we’re not. Today I want to clear up some of that uncertainty and talk about three key factors that will help you understand what’s happening in our market:
1. Home prices don’t usually fall during recessions. Home prices fell across the nation in 2008 because the housing market was one of the causes behind the recession.
2. This market is different from the one in 2008. In 2008, we had 19,000 homes available in King County and 8,800 properties for sale in Snohomish County. Today, we only have 3,400 homes in King County and 1,400 homes in Snohomish County. We had five to six times more inventory in 2008 than we have today, and interest rates were about the same.
3. The Seattle market is one of the strongest in the country. We have one of the strongest economies and the highest rates of job growth in the U.S., and home builders simply haven’t kept up with the demand in our market.
No one can predict the future, but over the long term, real estate is still a great investment. If you want to sell your home, it is still a strong seller’s market, even if it is cooling off a bit.
Call or email me if you want to talk more about your specific situation. I’d love to help.