It’s been awhile since last update on Real Estate and Around, about Seattle’s market. One of the reason was, too blurry presidential election, another is regular fall season slowing down on the market. But that wasn’t total waste of that time, we try to look around, at the data, opinions and what is important, at general mood on the market and business. By going through many different publication, we saw some blog with market analysis that compare home prices at 2007 and know, and author predicted that prices will fall down soon because of low index of affordability. It’s very simplistic conclusion, because it’s leaving out few very important factors; first is basic supply and demand, and despite of affordability, demand for housing or let say it, shelter over the head is very high, but supply is still couldn’t keep up with that demand. Also sky rocketing price for rental property just prove that point. Another factor is very different market right now compared to 2007 market, because of his majesty cash, that has been pumped in to US and Seattle market especially, by wealthy US citizens, hedge funds and foreign investors. Recent Bloomberg article (https://www.bloomberg.com/news/articles/2016-12-04/vancouver-housing-tax-pushes-chinese-to-1-million-seattle-homes) just provide an extra prove of that. It’s talking about how Vancouver high taxes for Chinese investors drive them to buy $1 million and up properties in Seattle, as result home prices in Seattle and around jump 30% from last year, it very sizable jump. Now we have to bring president elect of Donald Tramp that many times repeated on his campaign that something wrong with US- Chinese trade agreement, because we didn’t hear that citizens of biggest economy in the world, aka US investors flooded some country with tons of cash and totally changed landscape of real estate market over there, but that for another article. In another word; beside of index affordability we have another very strong factors that still drive home prices up, and there no sign of slowing down. Mortgage rates move to higher place after election, but it still be historically low, so if you find a deal, just go for that.
But please, be practical, because it hard to find a dream house at market with such a low supply , but regular Northwest home with at least 3 bedroom and two bathrooms, always will be desirable piece of property.