Coldwell Banker Bain predicts continued sellers’ market in 2017

Coldwell Banker Bain, a leading Pacific Northwest real estate market brokerage, has released 2017 market predictions for the Puget Sound region and specific markets.

When assessing the broader regional market, Coldwell President and COO Mike Grady annually reviews the most recent local data on employment, Washington state driver’s licenses and new building permits.

“The data shows that the population growth rate in the Puget Sound region, currently at double the national rate, coupled with expected continued strong job growth, is one factor pointing to our main prediction that the real estate market will continue to be as strong as it was in 2016,” Grady said. “Nearly 200,000 people surrendered their out-of-state driver’s licenses for Washington state licenses during the past 12 months, a sure sign of a commitment to residency. Even if we conservatively apply two licenses per household, that’s still 100,000 new households moving into the area. An average of 70 percent of those move to King, Snohomish, Pierce and Kitsap counties because that’s where the majority of jobs are, according to the Puget Sound Regional Council,” he continued.

And finally, Grady points to the fact that 9,120 building permits were issued over the past 12 months, compared to the 70,000 or so new households established in the area, to build his case for a banner 2017 year ahead in real estate. He stands by this prediction even considering the recent mortgage rate increase and any major decision made by the incoming Trump administration that might have a negative influence on the economy.

“There’s just nothing that can be done, in our area anyway, to deflect the number of households needed for new residents to the area,” he said. “We will most definitely continue to see a seller’s market.”

In local neighborhoods, Coldwell principal managing brokers agree.

EJ Bowlds, principal managing broker of Coldwell Banker Bain in Mercer Island, said, “The story on Mercer Island in 2017 will most likely still be the lack of inventory and homes for sale under $1 million. The high water mark for listings in 2016 was 90 single-family homes in July and the 10-year average number of listings in July was 130. Closed units through November were down another 13 percent from last year. Last week we had a rare residential listing priced in the mid $800,000s and it sold for over $1 million, which speaks to a continued frenzy here.”

For more information, visit www.coldwellbankerbain.com.

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