Seattle - Northwest market heat check - Seller Market 2?

[Lane Kawaoka]

I posted a graphical representation of the SFH market in Seattle and wanted to know what folk think.

1) Have we turned the corner and in a Sellers Market 2 (tern coined by duru Dave Lindel)?

2) If so what is the best thing to do?

http://theunconsensus.blogspot.com/2014/03/sfh-real-estate-market-in-northwest.html

[Karen Margrave]

@Lane Kawaoka Your area is probably much like Orange County, CA. The truth is, prices in high demand areas appreciate, and the advice to "wait it out" doesn't work. In reality, in areas of historical high demand, that demand continues for many reasons (healthy local economy with a broad based job market, natural beauty, good schools, medical care, etc.) with demand comes higher prices. The only thing that will help keep prices down is the supply of more units to the market. However; when land in popular areas is scarce, etc. the prices will still continue to go upward. The fact is, prices in areas such as ours, may never again be lower than they are now.

Though there may be no opportunities for buying low, fixing and flipping, there may be some great opportunities for new construction, land development, etc. Rather than buying a house, you may want to look at well placed condos, etc.

What happened in 2008 was a fluke. Thinking prices in all areas are going to come tumbling down again would be foolish. Make your plan, whatever it is, based on the reality of the market, today, and leave the crystal ball alone.