What's Driving Seattle's Record Breaking Home Prices?
A recent article by the Epoch Times, a global news media company which publishes in 35 countries, entitled “The Housing Bubble Comes to Seattle” details the city’s thriving tech industry and consequent job growth alongside the increase in Chinese investors as the main factors driving Seattle’s flourishing housing market.
According to the S&P Case-Shiller National Home Price Index, Seattle home prices rose 11-percent year over year through September 2016.
Here are some key take away points from the Epoch Times article:
Booming Tech Market
Seattle’s expanding tech market has led to record population growth within the Seattle area. This influx of people moving to Seattle has not coincided with a relative increase in housing construction, leading to a limited supply of housing in a demanding market and ultimately driving home prices up.
According to Redfin, the number of tech workers in Seattle increased by 21-percent between 2014 and 2015. The Redfin report also found that for every 1-percent increase in the population of tech workers in Seattle, home prices rise by half a percent.
New foreign buyer taxes in Vancouver, BC has led Chinese investors to seek properties south of the border and Seattle has become the center point for their focus. Compared to Vancouver, BC, Seattle has a much lower median home price and the area is ripe with opportunities for Chinese investors who, according to RSIR broker Mei Yang, are seeking to diversify their assets as the Chinese real estate market cools off and Chinese currency is being devalued.
To read the full article, please visit: The Epoch Times | The Housing Bubble Comes to Seattle
Austin Schneider | firstname.lastname@example.org | Realogics Sotheby's International Realty