Insights & Predictions into our local (Seattle Area) RE market

[Aaron Morrow]

I finished attending a Zoom class the other day with an economic advisor, Ted Jones. He offered these insights and predictions into our local (Greater Seattle Area) RE market:

1) We do not have an overbuilt market. Looking at 2013-2019 we had a total of 174,071 dwelling unit permits. We had 359,500 net new jobs. That is 2.07 new jobs for every dwelling unit. 1.25-1.5 new jobs/dwelling unit is normal.

2) He predicts a drop in the need for commercial space. He also stated hospitality and leisure will be "ground zero" and will see the greatest impact. He pointed out that the majority of the people employed by these businesses are lower-income, rent, and have lower credit scores---so they wouldn't have been our clients anyway. Additionally, he also thinks people will realize they do not need large office spaces. AND have a very nice home office could be the "new" thing is design and trends.

3) A key will be the maintaining of jobs. Our employment analysis for the area is strong with a large percentage of jobs in government, trade-transport-utilities, manufacturing, and information.

4) He does predict a decrease in overall sales but not a decrease in price.

5) He predicts the interest rates will stay low.

What do you all think? 

What are all of your thoughts!?!?