9 Economic Factors that Support an Upturn in the Washington State Real Estate Market
1. The weak US dollar is positive for WA State because it makes exports cheaper and Washington State is the 3rd largest exporter in the US.
2. Washington State is a strong business to business provider and will be the last hit and last to come out of a slowdown of the US economy. Microsoft is currently going gangbusters!
3. Wage inflation is outpacing price inflation 7% to 5%.
4. The weak US dollar is dramatically slowing employment outsourcing to India.
5. Washington State has a negative net migration. (Positive population growth)
6. Seattle has the lowest CAP rates on apartments in the US.
7. Forbes “Seattle best location for real estate investment”
8. Negative press in other areas of the country may become a self-fulfilling prophecy in Washington State.
9. While the economy is really ugly in Miami, Arizona, Las Vegas and parts of South California Bellingham and Seattle are among the top 3.
Stacey Derbinshire said,
September 9, 2008 @ 12:02 pm
Can you tell me who did your layout? I’ve been looking for one kind of like yours. Thank you.
riathareja said,
September 15, 2008 @ 12:55 am
We are off late witnessing Indian realty prices touching the sky. Learning to know what precedes property price increases can be challenging for any investor. There are some well-recognized factors that drive the market. I have discussed few of them below:
1. Demand & Supply- Population change is the key driver of demand. When an area becomes popular more people want to live there. Given there are fewer dwellings than interested parties, prices increase and vice-versa. The other driver is availability of land.
2. Affordability and availability of money-Affordability is the relationship between housing prices, interest rates and wages. It’s the cost to the owner or investor to retain and enjoy a property. When prices, interest rates and wages reach a ceiling in a particular area, residents often realise they can have a better lifestyle elsewhere.
3. Infrastructure-Infrastructure is always a major driver for price growth when it increases the attractiveness and amenities of an area. The benefits of infrastructure are generally recognized after the changes.
4. The resources boom-The demand for skilled and unskilled workers is increasing day by day.And with an increase in their salary scale, these workers seek to improve their lifestyle by buying bigger and better homes, or maybe an investment property or two.
Put a number of these drivers together and you have an extremely good understanding of what’s going to drive price growth. Having identified these areas, careful homework may reveal good cash-flow returns as well.For more view- realtydigest.blogspot.com
Marsha said,
October 28, 2008 @ 9:58 am
Well said.