Puget Sound Housing Market: Good News is Just Around the Corner!

Post authored by Craig Blackmon, with assistance from Robyn Armani, our assistant/bookkeeper/paralegal/office manager!

Well, and maybe down the street too.  And on the far side of the river.  But its coming!!  And perhaps sooner here than elsewhere…

According to a forecast compiled for Businessweek.com by Fiserv and Moody’s Economy.com, U.S. home prices will be 7.2 percent above 2010 levels by 2014, with the strongest growth right here in the Pacific Northwest. Of 384 places surveyed, the Bremerton-Silverdale area had the highest four-year growth forecast, with prices expected to increase 44.7 percent from 2010 to 2014. Meanwhile, Tacoma prices are predicted to appreciate 33.1% over the same period, while Seattle should see growth of 25.5%.

As an aside, these numbers sound an awful lot like the appreciation seen just prior to the bust, so in my opinion this may be a little overly optimistic. After all, historically housing prices have appreciated about 4-5% per year. Moreover, there is an emerging school of thought that homes have appreciated in spite of, and certainly not because of, economic fundamentals. If that’s the case, and given the remaining “hang over” from the excessive good times, then property — whether here or elsewhere — may not appreciate significantly for some time. But then again, I haven’t seen the data…

On a related note, the experts remain high on Seattle as a crucible for economic growth. Accordingly, we should have more support for housing values here than in those other cities that just don’t “crackle with creative energy” like the Emerald City…

Posted by Marc

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