November 22, 2019

Seattle: A market to watch . . .

Seattle ranks among top real estate “markets to watch” based on the strength of investment, development and homebuilding, according to a widely read forecast report.

The 35th edition of Emerging Trends in Real Estate reports the housing market “is no longer a drag on most local economies.”  The recovery will be strong enough to be an unexpected boost to a number of local economies, according to the report, a joint publication of PwC and the Urban Land Institute. Authors also stated:

  • A number of local housing markets have seen prices return to levels comparable to the peak from the previous cycle.
  • In most markets, activity has reached a level that is supportive of economic growth.

Researchers said survey results indicate an improved outlook for all types of residential property investment in 2014. Notably, infill and in-town housing continues to strengthen. That category is the top-ranked favorite for both investment and development.

Housing for seniors also ranked near the top, due in part to the aging population and a functional obsolescence of older independent living facilities.

Among “markets to watch,” Seattle moved up a notch from last year’s report, rising to No. 6. Of the three market components (investment, development and homebuilding) used to evaluate the markets, homebuilding posted the largest gain. Home prices are projected to increase 4.9 percent in 2014 when compared to 2013.

Researchers cited the city’s tech industry (and its above-average wages) and aerospace manufacturing as positive drivers in Seattle’s outlook. Quoting a national real estate consultant, the report said “Seattle is also becoming a core market for foreign investors.”

The study singled out Seattle’s high rate of educational attainment and global connections as factors that will keep the economy viable in 2014.

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