Our Seattle real estate market has seen some historic appreciation over the last 2 years. 2022 is starting off very strongly for sellers.
For those who are jumping on the opportunity to cash in on their real estate investment, we are witnessing some incredible results with multiple offers, bidding wars and sales price escalating 30%+ over list price. A recent sale in Bellevue made the news selling $1 million over asking… a true record.
From listening to Windermere Chief Economist, Matthew Gardner, here are his top 10 predictions for this new year.
#1. Price will continue to rise
In 2021, Seattle’s appreciation was 16% and the pace will slow down to 6% due to affordability issues. We are testing affordability levels across the country even in unexpected areas such as Salem, Eugene, Boise, Bellingham and Tacoma.
#2. Spring will be busier than expected
The season may come earlier & be bigger. The work paradigm is real and is likely to increase. The rise of COVID variants forced companies to delay “going back to work” to this year. Workers are likely to find out how many times they will have to go to work per week and find homes better equipped for home offices.
#3. The rise of the suburbs
This is a follow up from the previous point. Work will still be conducted from home either partially or full time leading to the appeal of suburbs and or areas away from high density. Greater interest in secondary and tertiary markets which have previously been overlooked up to now. This will lead affordability issues for existing residents who were planning to buy when the time was right.
#4. New construction jumps
The cost of new construction is expected to go down a bit due to inflation. Material costs, which spiked with COVID, should go down and lead to increasing new construction starts close to numbers not seen since 2005: 1.2M to 1.3M.
#5. Zoning issues will be addressed
A big push is expected to address zoning issues limiting development. Significant changes should be a focal point this year.
#6. Climate change will impact where buyers live
Now that natural disasters are increasing in frequency and climate risk data is starting to be readily available, buyers will want to know about fire or flood risks and the associated costs on home insurance or mortgage rate.
#7. Urban markets will bounce back
While increased working-from-home can & will raise housing demand further away from city centers, it may not necessarily mean less demand for city living. In fact, some urban neighborhoods may even become highly desirable.
#8. A resurgence in foreign investors
Prospective buyers have been sitting on the sideline since the beginning of the pandemic and started to look again when the travel ban was lifted last November. All this has been put on pause again due the rise of the latest COVID variant. If borders do not close again, we are expected to see a resurgence in foreign investors.
#9. First-time buyers will be an even bigger factor
First-time home buyers will be an even bigger factor in 2022. 4.8M millennials will be turning 30 which is the median age for Americans to purchase their first home. An additional 9.4M will be celebrating their 28th and 29th, people who are likely to buy a home if they can buy further out at more affordable prices.
#10. Forbearance will come to an end
Forbearance will come to an end, and it will be okay. There used to be a thought that this would mean a wave of foreclosures which is not the case. The number is shrinking. Homeowners still have the opportunity to sell their homes if they cannot get back on their feet as they exit the program.
The Tree Tree Point store: a local institution just revived after years of neglect. Stop by for a glass of vino, pastry or ice cream after a wonderful walk on the beach.
A little recap of our luxury real estate market throughout North America for September 2020. Click here to go to the report.
Location can often be more important than the home itself – while the interior can be changed to fit the homeowner’s vision, the natural surroundings generally remain the same. Of course, one can add to the landscape, but certain features, such as a seaside cliff or mature forest, can simply not be replicated.
If you have ever wandered through France and its Loire Valley countryside with its deep forests, laughing streams, charming historic villages and spectacular castles, this estate will remind you of these cherished peregrinations or simply make you dream.
Built above Puget Sound with endless views of the shimmering water, the Olympics snowy summits and the wild islands across the channel, this 1937 fairy tale estate will transport you in a different time and place.
Open the wrought-iron lion gate, follow the tree lined-driveway along lush gardens, espalier apple trees and discover this delightful manor surrounded by stone patios, fountains, courtyards & arbors.
Inside a feeling of warmth and refinement allied to modern comforts: venetian chandeliers, stately marble & stone fireplaces, curved railing & Provencal kitchen. The sunken living room soothes of elegance with its historic flavor. Four priceless oil murals speak of shepherds and pastures transporting you into the 18th Century Europe.
From every room, doorway and window, catch a glimpse of the incredible outside world and its natural beauty. Come visit this spectacular estate that will take your breath away only a short distance from Downtown Seattle, WA. $2,650,000.
A big thank you to the New York Times for featuring one of our waterfront listings