Shrinking inventories, low interest rates, and improved job numbers certainly have contributed to Seattle’s local market. Headlines began to hint at a recovery earlier in the year, with talk of multiple offers and price increases more recently. What’s less talked about is how Millennials have affected the housing market regionally.
The Millennial generation consists of adults who are between the ages of 18 years old and 35 years old. At the start of the downturn, this demographic was comprised of recent grads unable to find jobs, in student debt, and living at home. These would be buyers were on the sidelines of the housing market for the past couple of year.
Local companies such as Amazon and Boeing have been hiring by the thousands. As a result, this young, qualified buyer pool is contributing to the multiple offers that many Realtors are seeing right now. What’s more, unlike many parts of the country, Seattle’s Millennials are financeable. Some qualify for VA loans (given the proximity of JBLM). In contrast to other parts of the county, Seattle’s young professional is also prudent with regard to his or her spending behavior and have a down payment.
What to expect: this pent-up demand for housing, increased rents, and low inventory will precipitate higher sales prices this selling season. Despite the positive news, values will take a few years to return to pre-recession levels.