Notes from 2018 Economic Perspective – Feb 21, 2018

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.

 


 

 

Agent

Trey Affolter

Trey Affolter

Phone253-222-6000