Supply and Demand

You may look at this graph and insist there is a real estate bubble forming once again. This is not a result of a housing bubble because this time the market has skyrocketed because real people with real jobs that really can afford it are buying houses. We are not seeing investors making blind investments. Most of the investors have dialed back their real estate activity. What we have here is a true supply and demand problem that is not going away anytime soon. Seattle has a shortage of land and a lot of new jobs being created. New Washingtonians are moving here every month and are needing homes close to the city center. This is our new real estate reality. Prices may level out when interest rates take a serious hike but home prices will not go down in value.