Similar to cities such as San Francisco, Portland, and Dallas, Seattle is another metropolitan area that is growing within the real estate sphere. As properties, homes, and commercial real estate appreciate in value with increased demand, this provides room for professionals in the market to speculate if this bubble will burst. Recently, Zillow’s Chief Economist Svenja Gudell offered insight to Seattle City Council and provided an informative overview of predictions, a recap of progress in the market thus far, and current trends that are affecting the real estate market in Washington’s capital. Gudell highlights a very important quality that points to funneling a real estate bubble within the market. She states if buyers are purchasing homes for the sake of “keeping an investment,” this creates a financial atmosphere which …show more content…
People actually want to live in these homes that they’re searching for,” she said. “We’re still seeing an elevated amount of cash buyers but fewer now than we did two years ago.” The Chief Economist of Zillow also confirmed that since investors are not simply buying homes and flipping them, this also creates a more stable, robust market for all in which the environment is actually driven by high demand and limited supply. The data shared at this talk also underlines the correlation between low inventory and the home buying process. Generally speaking, people don’t want to engage in the difficult, low inventory real estate market in terms of the constant buying and selling of homes. Instead, buyers would rather stay in their homes and renovate to meet their particular design, functional, or layout needs. Therefore, overall, the construction boom isn’t as widespread or intense as it was a few years back. As opposed to construction companies targeting homes above or below the median price, a new emerging trend is building and selling more high-end, luxury