The Seattle real estate market is down again in April and many are starting to think it may never rebound. I believe the general public is feeling better about real estate (compared to a year ago or more) but at the end of the day it’s comes down to money. Many don’t feel secure in their jobs and even more don’t have enough money to invest in a home. When you’re nickled and dimed everyday with the taxes, fines, tolls, penalties, and other dreamed up concoctions it makes it very difficult for the average family. When you were a child, you most likely were taught that home ownership is the American dream. It’s the best thing you can do for yourself. A place where you can call your own instead of paying rent every month (that goes no where).
The real estate market sure has changed overtime. Of course the wages were less back then but you could get a home in the 5K – 20K range. Over the course of 30 years the property would grow in appreciation and eventually you could make a profit, retire on it, or just live comfortably. Unfortuately, the banks have put a stop to that. The average family purchasing a home will not even come close to see the home appreciation as it once was. A home that cost $250K will cost you over $400K over the life of loan. If you add in the additional 3K+ per year property taxes over the 30 years, that would mean you would have paid over 490K. Do you really think your $250K home will appreciate over $490K? The value of home ownership and the Seattle real estate marketing is retirement. You must be in it for the longterm.