2020 – Why you want to be in Seattle

I was able to listen to our chief economist for Windermere yesterday for his annual economic forecasts heading into 2020. The slides below illustrate his forecast for the Seattle area moving into 2020. #realestateislocal 

Matthew Gardner, while being one of the brightest minds in our company, knows how to deliver a message.

We all know that most economist are calling for a national recession in the not too distant future. But most are now pushing back for this to begin in mid 2021, be short lived and not focused on the housing market like the great recession.

Matthew feels the next recession will be due to the ongoing trade wars with China and the EU as well as our escalating national debt. With interest rates already at historic lows, the Fed will NOT be able to help end the recession by lowering rates.

But the Seattle area will be somewhat insulated to these national issues in the coming years, here’s why…

  • We’re no longer a one trick pony. Like when this sign from 1973 went up during a Boeing slump. Seattle’s industries have diversified. There are now 34 Fortune 500 companies in the Seattle Area compared to 7 just a few years ago! Boeing is still king with over 80,000 employees in the area but their ups and downs don’t threaten the Seattle economy like they did not too long ago.
  • The tech industry is the largest employer in the Seattle Metro area and have driven our unemployment #’s down to 3%.
  • The other employers to round out the top 5 for the Seattle area are JBLM, Joint Base Lewis McCord (56,000), Microsoft (42,000), Amazon (25,000) and UW, University of WA (25,000). A healthy mix of different industries that are projected to grow their employment by 2.2% next year, again leading the nation.
  • All of these growing companies in the Seattle area are why our economy will continue to expand through 2020.
  • There is still no signs of a Housing Bubble.
    • $18.7 trillion dollars of home equity in the US! We’re not upside down on our mortgages like during the great recession.
    • FICO credit scores are over 750 and the average amount of a down payment was 17%. 
    • So we’re qualified and invested when we purchase our homes.
Posted on December 19, 2019 at 11:06 am
Robert Johnson | Category: Finance, Market Info, Neighborhood | Tagged , , , , , , , , , , , , ,

Gardner Report 2019 – Q3

Our esteemed economist, Matthew Gardner, has released his 3rd quarter assessment of our Western WA real estate market. Enjoy!

Posted on October 23, 2019 at 2:49 pm
Robert Johnson | Category: Market Info | Tagged , , , , , , ,

Market Update – W-WA down to Seattle

The Gardner Report will tell you what’s happening in WWA real estate and a forecast for 2019.
The other graphs show you how the Seattle real estate market is trending for Q1 of 2019.

Some of the hotter neighborhoods are seeing over +15% price appreciation Feb to Mar 2019.
But most economist don’t feel we’re returning to the craziness of the last few years.
A much more manageable growth rate moving forward for Seattle, that’s nice for everyone, buyers and sellers.

Posted on April 26, 2019 at 2:35 pm
Robert Johnson | Category: Market Info | Tagged , , , , , ,

WW Stats – Up +10.5% – Median Price!

My office, Windermere Wedgwood, publishes statistics for the transactions that we represent each month.

These statistics dive deeper than the basic info you get from online sources.

The pack below shows transaction details like type of financing, cash offers, # of offers and the one I find most interesting this month, median sold price.

The median sold price for the 16 transactions completed by my office in December 2018 was $839k vs. $759k from Dec. 2017 or +10.5%

Even with the Seattle Times headlines about Seattle’s rapid decrease in prices, the numbers don’t lie, +10% vs last year!

https://1drv.ms/b/s!AlaUpVIy4kt9ge4Fxw5kVih5A4RrJA

Posted on January 17, 2019 at 12:30 pm
Robert Johnson | Category: Market Info | Tagged , , , , , , , ,

Hiring in Seattle up +10% vs 2017!

So much for the HQ2/3 impact on the Seattle employment picture.

This workforce report is pulled from LinkedIn data but a good indicator of what’s happening in the broader market.

While Amazon might be slowing down their rate of hiring in Seattle, others are ramping up for 2019 and beyond – Expedia, Facebook and Google to name a few.

Seattle is still a great place to invest your real estate dollar and looks to continue…

Posted on January 9, 2019 at 5:52 pm
Robert Johnson | Category: Market Info | Tagged , , , , , , , ,

Increased Loan Limits mean Increased Buying Power

Has your lender told you about the upcoming changes for conforming loans in 2019?

Make sure you’re working with a knowledgeable lender that keeps you informed on the latest and the greatest.

Thank you Matt for always keeping me up to date.

 

New conforming loan limits for King/Pierce/Snohomish county – all the way up to $726,525.

Gives you more purchasing power and reach.

A $725,000 home purchase will now qualify for a conforming loan with as little as 5% down payment of  $36,250.

You’ll be able to afford more home and still be competitive in the changing Seattle area market!

 

 

Posted on December 4, 2018 at 3:58 pm
Robert Johnson | Category: Market Info | Tagged , , , , ,

It’s Seasonal, really, plus a few other things…

It’s seasonal, really, we’re going through a slow down in the Seattle market but it’s also seasonal.  

What you want to pay attention to in the attached eye chart of a graph is the bottom graph and how every winter (December) for the last 10 years, we see a dramatic slow down in sales.

So yes, the rate of appreciation has slowed in the Seattle area since May 2018. 

But, we also see a slow down in transactional sales every winter.

Put them together and it seems more dramatic and remember we had quite a run up of prices over the last 5 years.

 

Posted on December 4, 2018 at 3:34 pm
Robert Johnson | Category: Market Info | Tagged , , , , , , ,

Where’s Robert…Neighborhood Series – Capitol Hill story

Come hear more of the story at my Open House this Sunday 1-4p.
321 Coryell Ct. E.

Posted on November 9, 2018 at 1:37 pm
Robert Johnson | Category: Market Info, Neighborhood, Open Houses | Tagged , , , , , , , , , ,

Home buyers need to hurry, here’s why – in Seattle –

My list for what’s driving the Seattle housing market:   

 

* Mortgage Rates will climb when Fed raises prime rate early 2019.

* Amazon announces HQ2 location(s), will Amazonians move? Not likely, Seattle is still one of the most desirable cities in US for tech workers.

* Facebook just announced, increasing office space in Bellevue + S. Lake Union.

* We have 34 Fortune 500 companies in Seattle, was only 7 in 2010! 

* Seattle will still be hiring moving into 2019. We’re more than just Amazon.

* Home Prices will continue to increase at new slower rate but Still Increasing.

 

 

Because of all of these reasons, I think the Seattle housing market will continue to grow and appreciate.

So, waiting for prices to drop is a long shot and the wild card of increasing Interest Rates will lower buyer’s purchasing power next Spring.

We know where we are now, the future is a gamble with so many variables.

This is why buyer’s should purchase this winter in Seattle.

RBJ.

Posted on November 6, 2018 at 1:08 pm
Robert Johnson | Category: Market Info | Tagged , , , , , , ,

Seattle’s Rental Cost #3 in nation…

Seattle still at the top for Rental cost, #3.    

We’ve had a big runup for Rents over the last few years because of a lot of population growth and a shortage of rental units.

While Seattle is the 3rd most expensive city in the US to rent, median is now $2600/month, our rents are not increasing as quickly anymore. 

 

This is good intel to have for investors and potential buyers waiting on the sidelines to buy in Seattle.

Most economist point to all of the building cranes around Seattle that are flooding the market with new rentals.

This is true but these new rentals are coming on in the upper end of the market so there is and will still be a shortage in Seattle of affordable rentals.

 

As with our housing prices, things are still rising just not as much as the last few years.

This fact along with the uncertainty of interest rates rising as well, this winter could be the best time to get into the Seattle real estate market.

If you’re waiting for prices to actually decline, for renting or purchasing, it doesn’t look like that will be happening in 2019.

But the slowdown in price appreciation this summer and fall has created a good opportunity to enter the hot Seattle market during a “pause” in the frenzy.

 

Goto SeattlePI for the complete list/story.

http://ow.ly/YvP330ms8JN

Posted on October 31, 2018 at 4:48 pm
Robert Johnson | Category: Market Info | Tagged , , , , ,