I have buyers debating whether they should buy a home now or wait. I'll share with you what I've shared with them – recently released data suggests that waiting may not make sense as prices seem to again be on the rise, and in some areas they are rising quickly. The Seattle area is the fourth "hottest" real estate market in the country, and that pressure is spilling over into adjacent Puget Sound communities. Let’s take a look at some of the data and commentary on the subject nationwide:
Ed Stansfield, chief property economist at Capital Economics:
“The current tightness of supply conditions would normally be consistent with much faster price growth. The continued steady growth in home sales that we expect this year will only add to this upward pressure on prices.”
Case Shiller Home Price Index
“The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a 4.1% annual gain in March 2015 … with a 0.8% increase for the month.”
Anand Nallathambi, CEO of CoreLogic
“All signs are pointing toward continued price appreciation throughout 2015… Tight inventories, job growth and the impact of demographics and household formation are pushing price levels in many states toward record levels.”
Danielle Hale, Director of Housing Statistics at NAR
“Even without further acceleration, the pace of price growth remains too high. Strong buyer demand and low inventories coupled with relatively low new construction are helping to push prices up, keeping the housing market tipped in favor of sellers.”
FHFA Principal Economist Andrew Leventis
"The first quarter saw strong and widespread home price growth throughout most of the country. Home prices are now, on average, roughly 20 percent above where they were three years ago. This run-up has been historically exceptional and is particularly notable in light of the limited household income growth and modest rate of overall inflation observed during that same time period."
If you are planning on buying a home in the near future, waiting probably doesn’t make sense from a purely pricing standpoint. If you are waiting in hopes that prices will stay the same or drop, you are likely to be disappointed. Would you like to discuss your options and learn more? Please feel free to give me a call – I'm always delighted to help!