LoanCentral's Real Estate Lending Blog

Housing values have remained in a fairly stable range once adjusted for inflation. Since 1890, (- at least that's when Yale economist Robert Shiller started tracking the data) there were a few exceptions when housing had significant drops in value - World wars I and II and the Great Depression. These created excellent buying opportunities for individuals who took advantage of those "Buyers Markets".

The most recent run up of housing prices has caused a long needed "Correction" in the market. Some markets, such as Las Vegas, Phoenix, Miami and parts of California were seeing double digit appreciation for years. These markets will see much larger corrections before their markets can stablize. Las Vegas had as high as 29% appreciate in 1 year. Simply stated -a correction was needed.

Seattle and Eastside communities such as Bellevue, Kirkland, Clyde Hill, Medina, Mercer Island, Issaquah, Sammamish and Redmond had its fair share of appreciation as well, but not to the extent of the cities mentioned above. Values in Seattle are also insulated from the limits to building which are caused by the "Growth Management Act", and even our geography. We are trapped to the west by Sea, and to the East by mountains. (Think of Vegas & Phoenix which can build out further and further into the dessert).

With population growth and the quality of life here in the Northwest, along with the lack of available land - it is expected that our housing values will be one of the first to stabilize.

See the "Should I buy now" calculator below - it's interactive!