Team Diva Real Estate’s basic response to this weeks economic news is “Avoid the Panic & Take Advantage of the Temporary Down Turn”! Seriously!
Once again we want everyone to take a deep breath, walk outside, have a glass of wine and relax. August is the month when a majority of the managers on Wall Street exit New York City for the Hamptons and middle managers head to the Jersey Shore.Â Who is left on the market? Typically, less experience folks who are told to manage the ship with minimal guidance.
The recent downgrade by S&P was merely a hand slap by the private sector to the federal government to say get back to work and make real progress on the economy. Team Diva does not agree with the downgrade, as it has the potential to impact mortgage interest rates and destabilize what little recovery the housing market has seen thus far. Remember – these are the same folks who gave Lehman’s and mortgage back securities AAA ratings right before the crash. Our personal view is that we are going to get out of this by, thankfully, living in Seattle, working together, supporting local businesses and just taking this recent spat of bad news in stride.
Let’s look locally to see where Seattle stacks up compared to the rest of the nation. A recent article by CNN Money Article reviewed home price trends in 384 markets based on the Fiserv/Case-Shiller Indexes. Nationally, it will be well into the first quarter of 2013 before median home prices across the nation will even be on par with prices from the first quarter of this year. Below is a great review of what we need to look at once the personal panic has subsided.
David Stiff, Chief economist for Fiserv, stated in a recent CNN Money Article that “markets that are ripe for a turnaround will be in the Pacific Northwest. The biggest gainer is expected to be Tacoma, Wash., where Fiserv said prices will rise nearly 25% by March 2013. Seattle and Portland’s prices are expected to stay flat through next March and then record double-digit gains of just over 10% each over the following 12 months.
“Homes are undervalued in the Northwest,” said Stiff, “the economy is diverse and the demographics strong. It has tech, manufacturing and extractive industries (like lumbering and mining) and people are still moving into the area.”
Diva Call to Action
Take a breath and make the most of the situation!
- Be a Community Member: Get involved with your local area to make it better. Mow the lawn on that foreclosure down the block, volunteer with a youth group, take over an abandoned lot and build a garden, help your condo board, etc. Just get out there and make things better.
- Buy Investment Property While itâ€™s Still Cheap: Vacancy rates are dropping in Seattle and rental prices are skyrocketing.
- Feeling cramped in your current home: Buy up to your next home to take advantage of the depreciated market while you still can!
- Make A Home for your Family and the Investment Will Follow: Create a home environment that works for you and your family, get to know your neighbors and have fun. The houses that sell the quickest and for the most money in Seattle, are the ones that have character and soul. Love your home and it will love you back!
- Sell Your Home If It Makes Sense: Sell your home if it makes sense for you economically and if itâ€™s the right time. Seattle has managed the downturn in better fashion than most cities. There is still a lot of equity in our local market.
- Relax and enjoy summer with friends and family!