2017 Housing Market Predictions: Top 14 Takeaways

2017 Housing Market Predictions: Top 14 Takeaways

Matthew Gardner, Windermere’s Chief Economist

Earlier this month, Windermere Mount Baker Real Estate hosted a presentation on 2017 Housing Market Predictions with Matthew Gardner, Windermere’s Chief Economist.

Gardner noted last year’s stellar market, in which a surplus of buyers and a deficit of sellers drove home prices higher across the board and answered questions such as “Will we see more of the same this year, or is a cool down in the cards? How will the economy hold up under a new administration?” and “Are we in another housing bubble?”

“I have always found Matthew Gardner’s talks to be very informative to me personally and very helpful to my buyers, sellers and investors,” said longtime Windermere Mount Baker realtor Serena Heslop. “Education is key to me and having an overall perspective of the local economy and the housing market, really helps clients to feel confident in making the right decisions, when buying or selling a home.”

In case you missed the event at Mount Baker Community Club, several of your South Seattle neighborhood realtors were kind enough to share their key takeaways from the event:

1. Millennials are entering the housing market, another source adding to the high demand in the area. (Joe Easterday)

2. If your children are in college, list your home and downsize so they can’t move back home post college. (Andrew Lee)

3. We are not in a bubble! (Sabranie Coyne)

4. If interest rates go up, people will be less likely to move since a new mortgage, even for the same amount, would cost them more money. This means, instead of buying new homes, people will remodel them and inventory problems will get even worse. Yikes! (Jennie Grant)

5. With home prices nowhere near those in the San Francisco-Bay Area, more tech companies are putting down roots in Seattle. (Joe Zajonc)

6. Land shortages, high land costs and a shortage of qualified labor has changed the way builders develop and sell new construction; now only building and releasing a few homes at a time. Typically an increase in new housing starts will resolve low inventory issues, but this won’t be the help it has been in the past as inventory will remain historically low and interest rates will increase. “Buy Now” is the theme for the foreseeable future. (Dorothy Driver)

7. We will continue to see Microsoft and Amazon spin-off companies. Approximately 23.3K people from current spin offs including Valve, Gates Foundation. Zillow,  Inrix, Expedia, Intell Ventures, etc. (Laurie Samuelsen)

8. Southeast Seattle is where much of Seattle’s growth is going to take place. This area is close to downtown with easy access to transit which is top of mind for many including millennials. (Sabranie Coyne)

9. Seattle is currently doing better than many areas with 2.7% employment growth. (Laurie Samuelsen)

10. Mortgage rates will rise this year to more than 4.5%. With the rise comes a reduction in the amount buyers may qualify for. (Sabranie Coyne)

11. Apple is moving in behind the Rainier Club! Easy commuting from Southeast Seattle. (Laurie Samuelsen)

12. It will continue to be a sellers’ market for the foreseeable future due to historically low inventory levels. (Sabranie Coyne)

13. 2017 will be the Year of the first-time home buyer. There will be 2.8M new homeowners this year, 19,000+ in King County alone and many of these will be young, first-time home buyers. (Sabranie Coyne)

14. There is currently less than one month of inventory in Southeast Seattle – a very tight market. (Matthew Gardner)

Have questions about this wild and crazy housing market? Send them to our “Dear South Seattle Realtor” advice column at gosuthseattle@gmail.com and they just might get answered in future columns. If so, you’ll get a free GO: South Seattle t-shirt!

 

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