Mortgage Crisis? Seattle's Real Estate Market Stays Strong

By Richard Barrington
Local Lender Columnist
May 30, 2008
Seattle residents might be confused by all the stories on the national news about a mortgage crisis and a housing slump, because the Seattle market has bucked the trend by straying strong. This is good news for Seattle home owners, though they'd have to forgive potential home buyers for seeing the glass as only half full.

Prices are No Bargain, but Stability Has Its Merits

While average home prices nationally declined at a 5.5% rate over the year ending September 30th, 2007, home prices in Seattle increased by 4.7% during the same period. This continues an extended period of strength for home prices in the Seattle market, as they have increased at an average annual rate of 10.6% over the past five years.

While these increases mean there are no instant bargains for potential buyers, there are some advantages to buying into a stable market. Among other things, mortgage shoppers in stronger markets may find mortgage approval a little easier to come by than those in troubled areas.

The recent housing data is yet another reminder that real estate trends are inherently local in nature. The national media may quote broad statistics, but when it comes to real estate, those statistics may have very little bearing on what's going on in your neighborhood. Did somebody say location, location, location?

Buyers and Sellers Can Agree: Lower Mortgage Rates is Good News

While Seattle's home prices represent better news for sellers than for buyers, both buyers and sellers can agree that the decline in mortgage rates over the second half of 2007 is good news. Lower mortgage rates are the tide that floats all boats--they help buyers afford their loans, and they help create demand for sellers.

Sources:
Freddie Mac

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.