Gardner Economics, a real estate and economic advisory service firm, recently recapped this past year of growth as well as provided insight into their projections for the markets in 2014.
Below is a recap of their predictions.
Employment will continue to grow in 2014, but will start to taper out. In 2013 we managed to finally get our employment to levels seen prior to the recession.
Ownership Housing should see continued growth numbers similar to 2013, where the greater Seattle area saw prices grow an astonishing 28%. Gardner predicts a similar growth in 2014 due to the fact that values are still 19% less than the peek home values seen prior to the recession.
The Apartment Market should add more new units in 2014 than seen in 2013 due to new construction and availability. This large availability could finally slow down the rising rent prices around the area.
Mortgage Interest Rates should continue to rise gradually over the next year to around 5.4%
The Office Market will continue its slow and steady growth in 2014. Vacancies are still at around 15% and landlords seem to be keeping lease rates flat to to keep that number driving down.
The Hotel Market is sitting in a great position heading into 2014 with continued growth in both occupancy and average rates due to limited supply in the area and no new hotels scheduled to be completed until 2016.
The Industrial Market should continue to be a great place for owners/developers in 2014. A number of new developments have been in progress since 2011 and even though the Industrial Market has not seen the large growth numbers seen in Homes, this is one of the most interesting markets to be in for 2014.
The Retail Market should remain pretty stable in 2014 due to the economic growth in the area, but mainly around Class A locations.
One other key driver Gardner noted for the market in 2014 is Boeing finally settling its differences with its machinists, which should help the surrounding areas see recovery similar to the more Urban areas of the Sound did in 2013
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