Real Estate Industry experts are predicting a 5% growth rate this year for Washington State. That is significantly slower growth than the 12.5% pace we were in during 2017. So those of you that were hoping for a bubble in the housing market to burst, may be disappointed. Now 5% growth is still a very healthy rate of increase in housing prices, but nowhere near the explosive increases that appeared during the last "bubble". A bubble requires both overvaluation and speculation. Speculation is the real key to predicting a bubble about to burst. We do not have that as yet.
In 2005 people were buying homes and letting them sit vacant and then selling them without significant improvements. Classic speculation. Currently prices are a touch overvalued, but there is little speculation.
Another indication of a housing bubble is the length of time that homebuyers are staying in their homes before turning around and selling them. Lower numbers equals greater speculation. We are not seeing that now. People are currently staying in their homes an average of ten years.
So, people ..... don't sit on the sidelines waiting for a bubble to burst and get left behind by rising interest rates and a healthy pace of price appreciation. Let us help you sort through the available listings for the right property for you.