Real estate investors have high hopes for the Seattle housing market this year. MSN Real Estate has cited Washington as one of the Top Ten Real Estate Markets of the future and Business Insider noted Seattle as one of the Ten Hot Housing Markets to watch in 2014. The city’s rapid growth in the tech sector and aerospace engineering have experts predicting an equally rapid growth in real estate investment, development and construction of new homes. This is important news for anyone interested in selling their home.
What Investment Means for Home Sellers
Like most economic markets, real estate markets rise and fall in cycles. With economic growth comes an influx of new jobs, new residents, and, unfortunately for home sellers, new competition. Seattle has been ranked 7th for growth in development and home building, and is one of the West Coast’s largest hubs for various international investment.
Right now, the real estate market is hot. Statistics in June indicated a 5.3 percent jump in home prices, with sellers receiving 102 percent of the list price. Home values have grown almost ten percent in the past year, and will continue to do so for a while. But with a wealth of new construction, new development and new real estate investors, the market will begin to saturate and swing the pendulum the other direction.
The real estate market cycles respond, as mentioned, to economic growth. As Seattle’s economy grows, so do the real estate prices. More people have listed their homes this year than last year, and even more listings are expected as the year goes on. But what happens when the market heats up and everyone suddenly begins investing, building homes and selling? Sellers begin competing instead of buyers: competition drives the prices down. In other words, now is a fantastic time to sell, because future conditions may quickly change those which are currently beneficial to sellers.
This will not happen immediately, of course. Prices are expected to continue to rise over the next year, but less than last year. And, following the usual trends of real estate markets, prices will peak, and then turn the other direction when the market becomes saturated with new home sellers, home builders and developers.
Right now, more homeowners are continuing to put their homes on the market, and buyer competition is still fierce. For now, the market appears healthy and this is exactly the reason so many are selling, investing in development and building new homes. Homeowners who wish to take advantage of the market should consider doing so during the market upswing. Those who wait too long may miss the window of opportunity.
For more information about the current market in and around Seattle, please don’t hesitate to contact us.