LoanCentral's Real Estate Lending Blog

It's important for prospective buyers and sellers to keep things in perspective. First of all, over the past year or two, the current housing pricecorrection is most pronounced in the super-heated markets in California, Nevada, Florida and Arizona  - not here in Seattle. In most other markets, price declines have been very modest.

In Seattle – the market has definitelyslowed down. BUT… do you know what the rolling 5 years appreciation rate is? Try 65.7%  !!! The average annual appreciation rate was 8.4% each year for the past 5 years. Putting it in perspective again… if you had bought Microsoft stock in the early 80’s, and sold it at the first sign of a price drop – how would you be feeling about that now?

Homeownership as a long-term investment has a track record that is virtually unmatched by any other investment. This is OPPORTUNITY TIME !

Here’s some good news for area homeowners and home buyers:

Seattle was recently ranked FIRST out of ten cities in a list compiled by Forbes.com of the most stable housing markets in America.

1.   Seattle, Wash.

Median home price: $395,000

Annual price change from 2006: 8.9%

Projected price change to 2008: 3.09%

Seattle continually bucks national housing trends. Price appreciation in the Emerald City has been strong over the last six quarters. Besides a very low unsold housing inventory and a strong sales rate, there are very few non-conforming loans, which lessens the chance of widespread foreclosures and delinquencies. While the market is slowing, the strong lending situation and sales rate bode well for the market.

2.   Pittsburgh, Pa.

Median home price: $123,500

Annual price change from 2006: 2.7%

Projected price change to 2008: 3.37%

Pittsburgh's growth has been steady over the last year, and with low foreclosure projections based on the state of the local lending market, very affordable housing stock and relativelylow inventory, it can overcome the fact that its sales rate is 30th out of the 40 markets measured.

3 Columbus, Ohio

Median home price: $153,900

Annual price change from 2006: -1.2%

Projected price change to 2008: 3.49%

Columbus, like many other cities in Ohio, has witnessed adeteriorating subprime lending situation. While things aren't going to turnaround instantly--projections list Columbus as the 17th worst market fordelinquencies (out of 40)--the city's sales rate is picking up. Based onMoody's Economy.com calculations, next year Columbus should boast the eighth-fastest sales rate of the 40 markets examined