Financial Outlook
It seems that everywhere we look, the US economy has been at the forefront of every news article, press release, and lead story that we encounter. It’s not just a national issue, either; the two month Boeing layoff cost our region dearly, WAMU’s demise closed the local corporate office, and both Starbucks and Costco have suffered significant 3rd Qtr losses.
Joseph Brazen
And yet there’s a beacon of light on the local horizon. I read an interesting article earlier this week on the health of the US Real Estate Market that placed Seattle as the most stable real estate region in the country. I’ll have to confess to not being overly surprised. As with most business owners, I measure economic news in large part against my own company’s circumstance, and at Brazen Sotheby’s International Realty things there are definitely indications of brighter times ahead.
There is definitely a trickle-down relationship between such events as the Boeing layoff and real estate sales in the region; if Boeing employees are facing economic uncertainty, they are far less likely to enter the real estate market either as buyer or sellers. While regionality certainly plays a significant role in the health of the local real estate market, so does the national economic situation. Even if our economy continues to run strong relative to the nation, attracting the best employees is often difficult because of the challenges they face selling their homes and relocating to the Northwest.
While we have certainly seen a slowing in both listings in sales when measured against ’06 and ’07, it’s heartening to know the Seattle area remains the best place to both buy and sell real estate in the nation. In spite of this fact there are still challenges; credit continues to be tight, and lenders are typically requiring more documentation and higher down payments than in the recent past. There also remains uncertainty in our political climate, and speculation as to the effectiveness of the federal bailout of mortgage holders Fannie Mae and Freddie Mac.
There’s a strong climate of “wait and see” with both mortgage lenders and buyers/sellers. The real estate industry is waiting to see how the economic rules will change with the new administration in Washington DC before committing themselves to a new course of action. That said, the new administration takes office January 20, 2009, and we can expect the financial industry to respond favorably to what I’m certain will be quick, decisive action. I am confident we’ll see a sea-change by Spring 2009, with mortgage rates remaining at all time lows, credit flowing once again between banks, and a corresponding uptick in our local and national economies.
Tags: Economy Effects Real Estate Sales, Real Estate Market Bellevue, Real Estate Market Seattle, WA
