Posted by: The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

7 responses to “December Reporting Roundup: Positive Everything Edition”

  1. softwarengineer

    Seattle Boeing Isn’t My Dad’s Oldsmobile Anymore

    Either is MSFT for that matter, as PCs become extinct.

    The problem with aerospace is similar to automotive engineering; but in this case, a lion’s share of the parts manufacturing for commercial jets was outsourced. But we still assemble them Seattle Boeing Toyotas and they’re made in America? Not like the past friend, not even close to the manufacturing base we once had in Seattle…..where we made all the production parts and spare parts life cycle costs.

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  2. Eastsider

    The biggest news in December was the higher interest rate. It does not bode well for the housing market going into 2014. It won’t surprise me that home prices will decline or the Fed will initiate another round of QE this year. The housing market needs a lot of (Fed) support to stay afloat.

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  3. mike

    RE: Eastsider @ 2 – I think we have a way to go before interest rates actually cause prices to fall. The latest stats I read were Seattle home buyers are spending 17% of their income on housing payments. If it were already at 28% with today’s low rates, I’d say we were approaching the point where buyers were stressed. At 17%, there’s some wiggle room left even if rates inch up towards 6%.

    Most signs are the fed will continue to slowly taper QE, and current rates already reflect this expectation.

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  4. ray pepper

    Hey its been awhile…Isn’t it time for……………………”Battle of The Brokerages”…or “Name your favorite Agent”………..”Biggest Buffoon of the Year”………….or “You have to be a Fool to give away your Commission”……..or…”Steve Tytler’s Hot Secretary Edition”…or “does Millionnaire Mike still live in his home? Whats it worth now? How About his Condo? Did it sell??????…Just so many possibilities….

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  5. Erik

    RE: ray pepper @ 4
    Been kinda quite around here since Tim took the thumbs down button away.

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  6. softwarengineer

    RE: Erik @ 5

    Thank God.

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  7. Kary L. Krismer

    Yesterday I finally got around to doing my analysis of the data for clients and what I focused on was not only the declining inventory, but also the declining number of distressed property sales (although REOs did jump slightly in December).

    Connecting the inventory level data with the distressed property data, we are clearly in a much better position today for sellers with equity than we were only a couple of years ago. Not only is there less competition overall, but there is also much less competition from distressed properties which tend to sell for lower prices. In fact, right now many REO listings are priced too high and not really actively competing. That is quite a change from back when sellers in areas with high levels of distressed listings had to lower their asking prices to compete.

    Conversely for buyers, these distressed properties no longer represent the same opportunity to pick up a property at bargain prices as what they once did. Banks are aware of the market and typically want more money on both types of transactions. Of the two situations, the REO situation is probably more damaging for more buyers. Not that many buyers were ever interested in short sales, particularly ones who wanted to live in the house themselves.

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