Real estate in the Pacific Northwest is still being pumped up by fleeing Californians. Californians (retiring baby boomers in particular) see that their homes have reached record prices and they’ve been selling. They are flooding into neighboring states with pockets full of cash, buying homes larger than the ones they sold for prices that seem, by comparison, pretty low and, in the process, driving up prices in the Northwest, particularly in the Portland, Ore. and Seattle metro areas.
The Northwest’s real-estate boom is likely to continue, albeit a bit slower, because those Californians are still moving around and also because that region’s economies are strong, Yun says. Both cities are riding a strengthened technology sector. Seattle is going strong on orders for Boeing aircraft and increased international trade at its port.
Ironically, the title of the report is “Boom to bust, almost overnight.” So, they acknowledge that things can rapidly turn around, while at the same time assert that strong growth will continue, apparently indefinitely. How delightful.
(Marilyn Lewis, MSN Money, 09.04.2006)