Bellevue Real Estate • For Buyers • For Sellers • King County Real Estate • Real Estate • Seattle real estate • WA real estate • Windermere Real Estate • February 8, 2011

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?