January 30, 2005
2004 Western Washington Real Estate Market Update
If you've followed the housing market at all in recent years, there are undoubtedly a few terms you've grown very accustomed to hearing, such as historically low interest rates, record high homebuyers, and record-setting housing sales. 2004 continued this trend with an 11 percent increase in housing sales compared to 2003, making it the best year ever for residential real estate in Western Washington.
2004 was a "quick action market," driven by record numbers of homebuyers, low interest rates, and low inventory. In fact, according to the latest Northwest Multiple Listing Service (NWMLS) figures, inventory is currently down 23 percent from 2003. This combined with low rates and record buyers has created a very competitive housing market, especially in the "more affordable" price ranges.
The flurry of sales activity in the more-affordable housing market in 2004 caused a chain reaction of sales that were felt up the price points. Furthermore, there were very high numbers of move-up buyers which caused increased activity in the mid-priced markets. As sales increased in the mid-priced markets, the effects were felt in the high-end housing market as well, resulting in solid sales across all price points.
What differentiated 2004 from previous years is that it was simultaneously bolstered by both job growth and low interest rates, creating a unique opportunity for buyers and sellers alike. Employment is traditionally the lead indicator of housing sales, however amidst our recessed economy during the last few years, historically low interest rates have made up for high unemployment. In 2004 we experienced economic strengthening driven by job growth, as well as continued low interest rates. This unique combination provided the basis for a "dream" housing market throughout the past year.
Western Washington housing sales are expected to continue this momentum well into first quarter of 2005. Furthermore, January and February represent an exciting time in real estate because it kicks off the height of the home buying and selling season. Due to improving economic conditions and continued historically low interest rates the housing market is expected to experience high numbers of buyers who are eager to take advantage of current market conditions.
Posted by beaubetts at 1:45 PM
