What to Expect from Seattle Real Estate in 2016

Today I’m going to talk a little bit about local market conditions here in Seattle and how it’s possible that in 2016 we could shift from a seller’s market to a buyer’s market. We have been in a steadily increasing sellers’ market for the past 6 years or so. A booming economy and historically low inventory have helped create and fuel this situation. Multiple offers are the rule in most of the Puget Sound, but I’m concerned that this could be shifting sooner rather than later. Here’s why:

As of last month, the stock market was down by 10% overall from its mid-2015 highs, and Amazon and Microsoft are both down 10% since December. Our local economy could be slowing, and the Chinese economy isn’t doing us any favors. Much of the buying here has been done by the Chinese, but if that stops, it could put additional downward pressure on prices. Falling oil prices have put a strain on the economy as has a decrease in venture capital. Additionally, we are seeing an increasing gap between the price sellers are asking and the price they are receiving. All of this adds up to be a concern for me. But what does it mean to you?

“If I were a buyer, I would probably want to wait a few months to see how things play out.”

If you’re a seller, the traditional thinking goes that selling in the spring is the best idea. This is a big mistake. You need to take action now, don’t wait for things to fall apart. There is plenty of pent-up demand from last year and I recommend you strike while the iron is hot.

I don’t predict the future and everyone’s circumstances are different. The market changes from neighborhood to neighborhood. If you have any questions for me, or you’re thinking about buying or selling, give me a call or send me an email. I would love to hear from you.