King County/Kitsap County housing shortage coming!

For the past few years this blog has focused on historical data tracking closings in North Kitsap County. The past two years show a decline in housing prices. That decline is the result of fewer qualified buyers. Simply put, not enough workers are earning enough to purchase homes. Money is tight, so buyers continue to wait until prices and the cost of money drop even lower.

In the light of this week's news from the King County Growth Management Planning Council, it is time to think very hard about where you will be in five years. 

Here's a summary of the GMPC's prediction. When the economy recovers--and it will--the Seattle area (including Kitsap County) will need enough housing for 428,000 new workers projected to be hired through 2025. The area has planned for 233,000 homes to be built during that time.

Do the math: the Seattle area will be short nearly 200,000 housing units. That means demand will exceed supply. Where will these workers live? If they can't find housing in King County (and many won't be able to), they'll have to look to outlying areas, the most desirable of which, as we believe, is right here.

What does this have to do with you as a buyer? Buy now. Interest rates are at historic lows and inventory at historic highs. You have the opportunity to purchase a home that will be in great demand in the coming years. When it's time for you to sell in five to ten years, you will have more buyers than you will believe. 

Still on the fence? Think about this: interest rates will rise as the global economy improves--and they will rise very quickly. Simply put, it will cost you much more to borrow money to purchase a home that will cost much more because of increased demand. 

Where will you live in five years? Can you afford to wait?