Seattle Gold

Less new construction + job growth=higher real estate appreciation.





Seattle is still one of the hottest real estate markets in the country. This is no big surprise to me as I see this on a daily basis. In my monthly market update postings, you can see which areas on the Eastside are hotter than hot. Of course, we still have months or areas that perform better or worse. But the overall message of the article from Inman News attached below is we are still on a real estate rise in values. When we end 2007, homes will be worth more than now. This article mirrors what I have seen and predict for this year in Seattle/Eastside real estate. Furthermore, when you look at other parts of the country as described in this article, you can see the strength of our real estate market.





The attached article mentions the all important reasons for our booming market: the economy and the growth management policies in the area. Thanks to Microsoft (the gift that keeps on giving) and all the other companies that are growing and hiring in the area, our job market is one of the best in the country.





The growth management act, which has some very good points, has placed lots of controls on development. It is harder and harder for developers to build in this area. The Eastside runs into water and mountains, so our supply of good land is very limited. Wetlands, native growth protection, salmon streams, traffic flow, etc all contribute to the cost of development and translate to higher mitigation fees for builders. Ever wonder why building lots have become smaller and smaller? The cost of construction has much to do with the diminishing lot sizes.





The good news for current home owners: we do not have the runaway development found in places like Las Vegas or Phoenix.Read the attached article to find out more about the gold and the cold areas in real estate. It will be no surprise that some of the areas with the greatest declines are those that recently had huge spikes in appreciation, such as Sarasota, Florida.





http://www.inman.com/hstory.aspx?ID=63271