Seattle Economist's Predictions for the 2011 Real Estate Market, Part II

Matthew Gardner, of Gardner Economics,  spoke at our annual Windermere Real Estate/East, Inc kick-off meeting today.  Mr. Gardner shared his thoughts about the local economy and Seattle real estate. Here are some of the highlights:

  • Seattle will recover more quickly than other parts of the west.
  • Growth will be slow and from the center, Seattle, out to the suburbs.
  • The private sector has increased job growth in the last 4-5 months and will continue to do so.
Seattle Area Private Sector Employment

Private Sector Employment in the Seattle Area

  • There will be more price corrections for those hi-rise condos that have not sold both in Seattle and Bellevue.
  • Buyers are still looking for good deals and feel uncertainty remains.
  • Prices are stable and, hopefully, will stay that way this year.
  • Banks are not releasing all of the bank owned homes to sell. The banks would go bankrupt if they flooded the market with these homes, causing prices to drop.
  • Mortgage rates will increase:  over 5% this year, 6% in 2012, and 7% by 2014.
30 year Mortgage Rates

30 Year Fixed Mortgage Rate Predictions

Here’s a few of Mr. Gardner’s thoughts for 2011 from the first of the year.

What do you think?  Is this what you see happening in the area and with real estate?

Posted on February 8, 2011 at 7:52 pm
The Beaupain Team | Category: Bellevue Real Estate, For Buyers, For Sellers, King County Real Estate, Real Estate, Seattle real estate, WA real estate, Windermere Real Estate | Tagged , , , , ,

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