What’s up with the Seattle market? I get asked this question nearly every day, so we’re going to take a quick look back at 2016, then give you my predictions for what the market holds in 2017.
What’s up with Seattle’s real estate market?
I get this question often from buyers, sellers, investors, and renters. So today, I wanted to take a quick look back at the 2016 Seattle market and give you my predictions for the 2017 market and how they might affect you.
According to Freddie Mac, we saw historically low interest rates last year—as low as 3.44%. That’s such cheap money! We also had a shortage of inventory, so when you combine those two, you can see why we saw multiple offers on homes and offers above list price. This equated to growth in sales prices all across the Puget Sound.
So what will happen in 2017? Interest rates went up after the election, which I explained here [link to Trump/interest rates video]. All the experts are saying that our inventory issues aren’t going anywhere, either. The only major factor I’ve seen come into the market right now was that 10,000 new apartments will be coming on the market in Seattle this year, according to the Seattle Times. Most of them will be high-end, luxury apartments. I also saw a report that rental listings are about $2 per square foot, which is not cheap for a rental.
People will still buy and sell for factors like these that are beyond just dollars and cents. So when I take a look at our local economy, I see that it’s still strong and we still have a lot of people moving here. We still have a lot of high-paying tech jobs coming to Seattle. I think we’ll see more of the same that we saw in 2016 this year.
Will it be as wild and crazy, though? No. I feel that the number of apartments and rentals entering the market will be a significant factor, but it won’t stop the growth of our market by any means.
Now, these are my predictions, but I don’t have a crystal ball. (If I did, I’d be doing this video from the beach with an umbrella in my drink.) If you have any more questions about our market this year or you want to set up a consultation, give me a call or send me an email soon. I’d love to work with you!