Positive economic outlook for Seattle real estate market
by Holly Gray.
How many times have you heard negative doom and gloom press over the past five years? Well, I am happy to actually send you some good economic news!
1. First Monthly US Budget Surplus in 3 Years
The Congressional Budget Office is reporting an expected monthly budget surplus of $58 billion, which would be a first in nearly 3 years! The improved numbers are attributed to a 10% increase in tax revenue. The month of April coincides with the tax season, which typically results in a yearly surplus, but that hasn’t happened since the 2008 financial crisis when tax revenue fell. “It is a clear signal that the government’s fiscal situation is finally moving definitively in the right direction,” said Mark Zandi, chief economist for Moody’s Analytics.
Next month’s report will likely show a budget deficit, but the small surplus is an important milestone in the nation’s struggle to fend off a future debt crisis.
2. Washington State and California have increasing Home Prices
The Seattle Times reported last week that home prices have increased in King County! Another article on the same subject is available on Realtor.com.
The article lists 7 metropolitan areas, which are now showing increased sales prices:
1. San Francisco, month over month increase: 6.10%
2. Washington, D.C. 5.92%
3. San Jose, CA 5.57%
4. Oakland, CA 5.04%
5. Seattle-Bellevue-Everett 4.97%
Median list price: $315k
6. Toledo, Ohio 4.90%
7. New Haven – Bridgeport, Conn. 4.29%
New images show what Amazon’s proposed towers might look like. What this means for Seattle real estate is clear: the stagnation we’ve seen in the market is shifting. We are seeing properties move faster; sellers on the sidelines are deciding to put their homes on the market. Combine this with the spring/summer season as well as the hiring going on at Amazon, Microsoft and Boeing, and we can expect to see prices continue to rise.
Holly Gray helps Seattle real estate clients find Redmond, WA homes for sale and real estate in Bellevue, WA and surrounding areas.