Seattle Home Prices - A Local Market Debate

Pretty good article in the Seattle Times regarding the local Real Estate market. There is a heated debate whether Seattle is a different market. There are good points on each side.

Home prices' long rise: Is the end near? - 09/03/06

But take this advice because it will serve you well in a buyer's or seller's market. It is a proven principle in real estate and you won't go wrong.

If you are looking to buy. Buy a house you love (if is it your home), but most important buy one that you can afford on a fixed rate mortgage. Your payments will stay the same and you will own your home in thirty years.

The housing market has gotten out of hand because of speculation, investing, and new mortgage programs. Variable rate mortgages make up a very large part of the industry, see the chart below:

http://www.businessweek.com/common_ssi/map_of_misery.htm

Eek, watch out Cali.

I am believer of real estate and do believe in investing in the market. Why? Because of leverage.

You can put 20% down on a property and leverage the rest. You can't do that in the stock market, each dollar invested in your own.

The rental market looks good right now because it hasn't corrected itself yet. Dupre and Scott Apartment Advisors interview thousands of property owners and managers in the Puget Sound region. There are predicting a 15% increase in gross rent over the next two years.

Unfortunately, both buying and renting is becoming more expensive.

Dan
danielh@gibraltarusa.com