LoanCentral's Real Estate Lending Blog

That's exactly the population boom that we are for if the latest Census Bureau data is correct. Imagine what that will do for our real estate values! Supply and Demand will drive prices up with the added demand of population growth.

In June 2008, the Census Bureau released their projections for population growth in the United States. They are projecting an INCREASE of an additional 135 million people in the USA by the year 2050 - just 42 years from now. 

• That's an additional 3,214,285 people per YEAR or
• 8,806 new people per DAY

 When all is said and done, if the projections are correct - it's the equivalent of the entire population of Mexico and Canada moving here to the United States. Think of what that would do to home values in the next 30 to 40 years!

By the way, if you were wondering - the driving factor is primarily fueled by immigration and not new babies. In the past, FNMA projected that the typical immigrant purchased a home within 10 years of moving to the USA. The projections are estimated to create a need for 52 million NEW housing units, not to mention the boost to our housing market and other local economies that support population growth.

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!