Fourth Quarter Takeaway from Matthew Gardner: Our market continues to add jobs and our population continues to rise (+63,000 in 2014), both of which are very positive. However, our housing market continues to have a lack of homes for sale.
Will we see an increase in listings in 2015? That is the million dollar question. If not, then we might see builders going into overdrive in an attempt to address pent up demand.
Interest rates are going to rise in 2014, but not at excessively fast rates. By the end of 2015, I still expect to see the average 30-year fixed rate below five percent, but a lot closer to it than we stand today.
I expect to see home prices continue to appreciate in 2015, but at somewhat slower rates that are more sustainable over the long term. However, it is possible that price growth may continue to escalate faster than anticipated, even if we see the number of homes for sale increasing, if a higher proportion of those homes coming to market are high-end homes.
*For a far more detailed analysis of the Western Washington housing market click on the pretty pic! It’s packed with all of the dirty details.