The Buyers Edge in the Seattle Market

On Friday July 6th 2007, Elizabeth Rhodes published an article in the Seattle Times titled "Scales tip in favor of homebuyers": http://seattletimes.nwsource.com/html/businesstechnology/2003776992_homesales06.html

As far as newspaper headlines go, the past couple of months have certainly been an interesting time for the mortgage industry. What is helpful to understand is that it is a pendulum and it does swing.

With appreciation taking off like a rocket in 2006 in the Seattle area, affordability became a rising concern. Local home owners could sell their home for quite a bit more than what they had purchased it for; but then again their new home cost quite a bit more than they had planned on.

New home buyers relied on creative financing to get their foot in the door, and depended on appreciation to bring them in for a safe landing. (And a safe landing it was with Washington's forclosure rate at less than half of the national average.)

Now- appreciation is slowing as houses stay on the market a little longer. Sub-prime financing is no longer as available- but perhaps this buyers market will help to even out debt to income ratios so that they are less needed.

A turn towards being a buyers market does not seem to signify that it is a bad time to sell.
Lawrence Yun, senior economist for the National Association of Realtors was quoted:
"I'd still characterize the Seattle market as being healthy — one of the few in the country. And in terms of price appreciation, no one else is doing better."

This sounds like a win-win to me.