Today I had the honer of listening to Pat Stone, Chairman & CEO of WFG National Title, & considered 1 of the TOP 100 most influential people in Real Estate.
Pat discussed a lot of Economic information, and I wanted to primarily share the “key nuggets” as it relates the economy & the real estate market in Tacoma & Pierce County Washington.
2017 was a fantastic year for the area! The forecast for the next 18-24 months also looks positive. Believe it or not, it’s a good market for both buyers & sellers.
Outlooks For Buyers:
- Mortgage Rates are still low, they will inevitably rise. Buyers who have been on the fence should consider purchasing soon.
- Rental rates also are expected to continue to rise. Quit paying someone else’s mortgage & start building your own net worth.
- Housing affordability is rated at a good value.
Outlooks For Sellers:
- Home owners have seen massive appreciation over the past few years. Rising interest rates, or other factors, could quickly change the market & those rising home values. If you have been considering selling, there may be no better time than now.
- It is projected locally that home values may increase 3-5% in 2018, depending on location & condition.
What’s Driving the Local Market & Prices:
- The “Seattle Effect.” Home median home values in Tacoma, Pierce County, are about 1/2 of Seattle. Many are choosing to purchase locally, then commute.
- Employment opportunities are good & we have major employers such as JBLM, several medical facilities, & UW-Tacoma has revitalized the downtown.
- Consistent population growth.
I often get asked if we are in a “Bubble” again. We are not, Pat Stone confirmed that, & one is not currently in the forecast. If we do experience one, it won’t be like what we experienced in 2008-2010. Prices are right where they should be.
I hope this has been insightful. Contact me if you have any questions about the local real estate market, consider me your resource.