I started the new year off attending an economic summit focused on the Puget Sound region. Leading experts shared their data and forecasting concerning housing, job, and economic growth for our area.

The 2020 real estate market is off to a brisk start. We seeing multiple offers and homes selling quickly. The belief is that this will continue. There are a number of factors driving the market.

Continuing low inventory is a large factor. A normalized market has 6 months inventory. We are currently hovering around 3.5 months.
Another strong factor is affordability. Interest rates are below 2017’s significantly low rates which is increasing purchase power. The good news is interest rates should remain low as historically we do not see interest rates increase during a Presidential election year.
Both the job sector and population are projected to grow in our region. For every new job at Amazon, five more are created. Amazon continues to attract other major tech companies to our area. Google,… Besides access to Amazon’s employees, Seattle remains one of the most affordable tech cities in the nation.
Contributing to growth in our region is the national consolidation of army bases. Joint Base Lewis McCord is one of the bases that was chosen to stay open and expand. The impact can be seen as you can drive along the I-5. Multiple new hotels have been built in the area as well as numerous new businesses and housing.
SE King and Pierce Counties are leading the nation in aerospace tech start ups. This is also propelling urban sprawl growth along the I-5 corridor.

As Seattle proper becomes less affordable for the average home buyer, expect to see price increases in surrounding areas as the population moves further out. We are seeing major growth in Kitsap, Thurston, Pierce and Snohomish counties.

Have a question about the market? Get in touch, I would love to speak with you!