Outlook for Seattle Real Estate Market In 2017
There is a theory among some investors that the real estate market in Seattle is at its peak and prices are likely to start declining in 2017. These are just rumors because there is no evidence that the real estate market in Seattle is indeed at its peak. Actually, those directly involved in property management in Seattle have projected that the market is likely to grow by double digits in 2017. The increase of real estate property prices in the area is caused by actual demand and there are no signs of it coming down anytime soon. For instance, if the study conducted by Veros Real estate market is something to go by, then investors should expect more growth in 2017 and beyond.
It is true that 2017 is going to be a tough time for first-time homebuyers in Seattle, but this should not be interpreted to mean that another bubble is coming soon. The fact that many people are buying homes in the area to speculate the future market is not likely to affect the prices downwards because the number of houses constructed in the area is still less than the demand.
Home Prices Expected to Continue to Increase
It is understandable that the fact that home prices in Metro areas of Seattle reached the all- time highs early this year could make investors think that the market will start declining soon. It is true that the market will start declining at a certain point, but there is not clear indication that it will be in 2017 or anytime soon. On the contrary, there are strong indications that the market will continue climbing in the years to come. This means that those planning to acquire real estate properties in Seattle should do it now or be prepared to pay more for the same properties in the future. Remember that home prices in the area have increased by about 16.7% in the past year and if the trend is maintained, home prices are likely to increase by more than 20 percent in 2017.
Metro areas expected to have higher increase than suburbs
The metro areas of Seattle are expected to register a higher increase in home prices in the coming years compared with the developing suburbs. This is simply because the demand for homes in these areas is higher than the supply of inventory at the moment and the situation is likely to be worse in 2017. According to Seattle property managers, the increasing employment opportunities witnessed in the metro areas of Seattle will likely attract more people in the area, especially the working class. Consequently, this will increase the demand for homes in the area. The population is projected to increase by no less than 8 percent in 2017 and this will result in an increase in demand for housing.
It is true that homes are likely to be unaffordable for first-home buyers in the area. However, this does not mean that people will not buy or rent in the area.