Seattle in top ten list of rising home prices
01:17 PM PDT on Tuesday, April 11, 2006
SEATTLE - The real estate bubble in Seattle isn't bursting anytime soon, at least according to a new study.
Bankrate.com did a comprehensive financial analysis of housing prices and conditions around the country. The analysis put Seattle and Portland in a list of ten cities in the U.S. where prices should continue to go up.
The national survey says 'tight controls on development' have prevented normal progress for builders and that's why demand has stayed high, even in suburban Seattle.
Mill Creek real estate analyst Suzanne Britsch says it's more complex.
“We're in the middle of a job expansion here, so businesses are hiring,” said Britsch. “There is a demand for housing, so we've got that going. And we also have the constraints on land, so we don't have existing supply to meet demand.
Seattle and Portland are joined on the 'bubble blowing' list by cities like Boise, Salt Lake City and Albuquerque in the West, Philadelphia and Atlanta in the east.
Bankrate says cities like Las Vegas, Sacramento, Phoenix and Los Angeles are expected the bubble to deflate. In fact, Bankrate says Vegas homeowners could expect values to decrease 13 percent over the next couple years.
"They have land to grow, where there is no constraint, you have enough supply," said Britsch.
So what does it all mean? Britsch says first time home buyers saving up right now need to act fast or you may need to change your expectation for your first home.
“They need to get realistic and understand that they need to buy a house, and it's not going to be there dream house, there going to have to buy a resale house just to get started," said Britsch.
Britsch also predicts the bubble won't burst in the local housing market and will only “slow down.” And that may not even happen for another 12 to 18 months.
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