I devote this column to looking ahead, a forecast of 2013’s real estate market.
After nearly five years of declining values and false starts, I’m happy to report that the recession is in the rearview mirror and a healthy economic recovery is on solid footing — particularly in Seattle.
According to Forbes Magazine, the Seattle economy was poised to come out of the recession first and remain healthy for years to come. Indeed, Seattle real estate is recovering at a faster pace than the rest of the nation: It’s no longer a buyer’s market in Seattle. It was recently reported that Seattle is among the top-10 seller’s markets in the nation. Record-low interest rates and the shrinking inventory of available homes are driving the rapid turnaround in home prices.
The newest data shows that the annual slow-down in November sales didn’t really happen as expected: Buyers kept buying. For my business, December is already busier than November. You can attribute the surge in business to pent-up demand that has been idle, waiting on the sidelines for a sign that real estate is once again a safe investment.
In 2013, there will be more good news for the Seattle real estate market. You can expect double-digit increases in property values. Expert forecasts predicted a 15-percent increase in home values between June 2012 and June 2013. At midpoint (December 2012) King County real estate values have increased 14.9 percent.
Seattle is ahead of the expert forecasts by a substantial margin. I’m confident we will see an additional 10-percent appreciation in 2013, making for a cumulative increase in home prices of 25 percent in just two years.
If you’re planning to buy a home in 2013, I encourage you to fast-forward your plan to buy. Each passing day means higher prices.
If you’re planning to sell in 2013, I
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