Business Week Magazine online featured an article about Seattle’s prevention of overbuilding last week, which clearly favors an optimistic view for current homeowners. Consultant Richard M. Gollis, founder of the Concord Group in Newport California, was quoted as saying, “Give sales, demographics, and job growth, we expect the inventory in Seattle to burn off faster than in other markets.”
Just based on the city’s physical demographics alone, a local builder points out additional constraints when building, since the city is between the Puget Sound, and Lake Washington. While the supply of homes nationally averages a rough nine months to swallow, Seattle’s estimated supply is an estimated five months.
“…cities with low inventory will bounce back sooner than the rest of the U.S. Tight supply in Seattle—much like in Dallas, Denver, and Portland—should set the stage for recovery in the next year or so.”
Still, many are waiting for the Seattle market to hit bottom, as if the city hasn’t already. With Miami looking at a 40-month supply, numbers and expectations are skewed. However, the article gives an example of homeowners who have recently received multiple (five) offers the day after going on to the market. Additionally, we ourselves have had a buyer inquire about two properties that are now already pending.
Building restrictions—and the city’s unique geography—should help lift prices
2007 MEDIAN HOME PRICE
2008 MEDIAN HOME PRICE