Tuesday, October 16, 2012

Critical Housing Shortage On the Horizon in Seattle Could Cause Another Real Estate Bubble.

There are interesting new dynamics setting up in the King and Snohomish County housing markets:  Pending sale have been out pacing new listings to come on the market for 12 months straight.

Currently buyers have been frustrated wilth the low amount of inventory to choose from in the market place.  Well priced homes in select areas are seeing multiple offers, many of which are turning into bidding wars in a return of the bubble days of 2006-2007.  Current active listings have now dropped below the 2006-2007 inventory levels.

This is not a healthy balanced housing market and could cause home prices to spike dramatically in the near future.  This could change if more inventory hits the market or mortgage interest rates rise significantly, neither of which are in the forecast.

But wait, aren't we expecting more foreclosures to come on the market?  Well, yes.  But not enough to put a dent in the low inventory numbers.  As a matter of fact, forelosure rates are at 3 year lows and there are no signs of any significant rise in the numbers any time soon.

What will the Seattle housing market look like in the Spring of 2013?  If you are a home buyer, it won't look pretty.  But if you are a home seller, it may be time to take advantage of regained property values and make that move you've been waiting to make for 5 years.

1 comment:

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