This blog has focused on historical data tracking closings in North Tacoma. Like the nation, we've seen a decline in housing prices. That decline is the result of fewer qualified buyers: not enough workers are earning enough to purchase homes. Money is tight, so buyers continue to wait until prices and the cost of money drop even lower.
In the light of this week's news from the King County Growth Management Planning Council, it is time to think very hard about where you will be in five years.
Here's a summary of the GMPC's prediction. When the economy recovers--and it will--the Seattle area will need enough housing for 428,000 new workers projected to be hired through 2025. But King County has planned for 233,000 homes to be built during that time. It has no plans to allow for more building
Do the math: the Seattle area will be short nearly 200,000 housing units. That means demand will far exceed supply. Where will these workers live? If they can't find housing in King County (and nearly 200,000--the population of Tacoma--won't be able to), they'll have to look to outlying areas, the most desirable of which, as we believe, is right here.
What does this have to do with you as a buyer in Tacoma? Buy now. Interest rates are at historic lows and inventory at historic highs. You have the opportunity to purchase a home that will be in great demand in the coming years. When it's time for you to sell in five to ten years, you will have more buyers than you will believe.
Still on the fence? Think about this: interest rates will rise as the global economy improves--and they will rise very quickly. Simply put, it will cost you much more to borrow money to purchase a home that will cost much more because of increased demand.
No comments:
Post a Comment