Stay abreast with the latest news and updates about the real estate market here on this page. Along with my insightful commentary, you’ll have a better idea of what’s happening in the bigger picture without losing sight of what’s on the ground. I’m Clay Hutson and I do most of my business in and around Seattle. Join me in the real estate discussion here.
Seattle Real Estate Bubble Debate
Market players have been feeling antsy about whether or not real estate in Seattle is in a bubble. I’m inclined to think that we are not in a real estate bubble, or at least not yet. Based on some reports released this month like that from Cushman and Wakefield, commercial demand for office space remains strong. This is on the back of higher labor participation, which also sees more international players coming in to invest in the country.
One argument often thrown at bubble skeptics is that skyrocketing real estate prices almost always precede a crash. I don’t necessarily believe this is true, at least not all of the time. This is because one should first look at what is fueling the trajectory of real estate prices. If one of the reasons happens to be buyer speculation and this is coupled by large, bad debt at that, then that’s your red flag right there.
Right now, Seattle home prices are on the rise, but this is mainly due to dwindling supply, not mere speculation plays. If you look at the standards of living in Seattle, they are still significantly less expensive than other global cities like New York.
All in all, I don’t smell a bubble, but my eyes are nevertheless peeled for more evidence.
Effects of Global Warming on Real Estate
In other related news, global warming has made itself felt strongly this week among Mid-Atlantic States. The pictures online of Storm Hermine—showing rising sea levels and threatening coastal waters ready to swallow entire roads—is a real estate professional’s nightmare. According to Zillow, billions of dollars of real estate property is at risk for global warming effects. This includes homes in Maryland, Virginia, and New Jersey, among others. Florida is already unofficially dubbed as the poster child of mass flooding brought about by global warming, but it seems political interests at the Paris climate change conference will keep this issue at an impasse.
Of course, global warming is worrisome news for any home buyer, and not just in parts of Washington. If you’re a real estate professional, it’s an absolute must to know and be familiar with areas that can be considered as high-risk for global warming effects.
I’ll be updating this page again soon when I come across more real estate news worth sharing. Subscribe to my website today if you want to be the first to know when I post new entries. It’s the most convenient way to stay updated with me.
Meanwhile, you can also visit my blog page to get involved further in the real estate discussion. Please feel free to weigh in on the issues and topics I have discussed.
Thanks again for your time.