The Gardner Report – Regional Economics and Real Estate

The Gardner Report: Second Quarter, Volume XVIII (Western Washington)

REGIONAL ECONOMICS

There’s an old saying in Western Washington that you have to wait until the 5th of July for summer to start and that, after a prolonged period of tedium, light starts to shine. In reviewing the latest data on the economy and real estate markets, I believe the same can be said about them.

The region has seen notable gains for several quarters now, and what is most impressive is that it has come despite continued reduction in government employment. The private sector in our region has taken the bull by the horns and continued to grow despite the uncertain macroeconomic and political environment.

Growth in our region has become the envy of the West Coast and I hope that this can be sustained.

CONCLUSIONS

Summer has appeared in Western Washington and this has, so far, been reflected in our economy, as well as our housing market.

Businesses have been adding staff at a fair clip and, to a degree, this has influenced people’s decision making when it comes to buying a home. The two are, indeed, intertwined.

Even with this positive data, I am still suggesting that we be a little cautious regarding the housing market. Not because I believe that we are going to see any sort of rapid decline in values, rather that the long-awaited improvement that is shown here may still have some hurdles ahead.

The wait for summer has been worth it—as has the very long wait for recovery/stability in our regional economy real estate markets. The glass is definitely half full right now, but it remains too early to call for a certified recovery in home prices. Enjoy the weather while it is here! [READ FULL ARTICLE HERE]