Many of you have asked me my prognosis for the 2016 real estate market in the greater Seattle area. Well it’s almost New Year’s Eve so my crystal ball is out! I predict continued low inventory, with some slight increases. Honestly folks, some neighborhoods have a 2 week housing supply (6 months of housing inventory is considered a “balanced” market. Anything under 5 months is considered a seller’s market so any inventory pockets with a 3 month or lower supply is what I call a “seller’s market on steroids”). This means that a small increase will actually be a good thing to the buyers out there and will create more unit volume for everybody. I therefore see 2016 as a continued seller’s market with a gradual shift into a more neutralized market in 2017. Rates will go up a total of no more than 1% in my estimation. This will cause buyers to be out in full force potentially competing for our low inventory. Our Seattle area economy will do great and our local unemployment will remain low, so our median could rise from the $500,000 it is now in King County to approximately $525,000. How neutralized will we be by 2017? Ask me this time next year! The crystal ball only lasts a year and I reserve the right to update quarterly.
Vija’s 2016 Crystal Ball for Seattle Real Estate
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