Wednesday, February 27, 2013

real estate report card for 4th qtr

Just in....Matthew Gardner's 4th quarter 2012 report on the real estate market in Western Washington.

Highlights from his conclusion:

"I remain in somewhat befuddled awe when I think of the resiliency of the United States economy and how we, as a nation, are emerging from this recession bruised but, for the better part, intact. Inasmuch as the government has tried, hopefully unwittingly, to hinder our growth with various budgetary issues and the like, we are doing our best to adapt to our environment and grow the economy. 

I started out this piece with  quote from George Orwell which inferred that our job recovery, although occurring across geographic board, will be unequal. I certainly expect that the power centers that accommodate a majority of our businesses in the state (Washington) will expand at a faster rate than counties that are more removed. That said, the overall picture is a positive one and I expect that 2013 will be another year in which our regional economy outperforms the nation as a whole.

From a real estate standpoint, it is clear that we are now well removed from the days when home prices were hemorrhaging. Home values have stabilized and a recovery in values is underway. The credit markets have thawed and getting a mortgage is easier now than it has been since the housing "bubble" exploded. Interest rates remain at historic lows, and although I believe that they will rise in 2013, the increase should be modest. 

The outlook is getting clearer. Home values will appreciate in 2013, but not all markets are created equal and some will fare better than others."  Matthew Gardner

Matthew Gardner is a land use economist and principal with Gardner Economics and is considered by many to be one of the foremost real estate analysts in the Pacific Northwest. 

Mr. Gardner shared his outlook for 2013 to a group of my clients on January 30th. If you would like a copy of that presentation, please let me know-I will see that you receive a copy quickly!

Until next time,

la chasse au bonheur

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