Tuesday, January 02, 2018

Q: Prices have just gone through the roof here on Vashon in the last year or two.

Is that just my imagination?  Do you think it's another bubble?  I'm worried that my son, who is currently serving in the Navy, won't be able to buy a home here by the time he gets ready.

A:  From all that the "experts" tell us, there is no bubble as far as Puget Sound real estate is concerned.  Perhaps if all the tech-related industries left at once, which seems highly unlikely, there could be a downturn.  In addition to our growing commercial sector, extreme weather in the rest of the country (fires, floods, hurricanes, etc.) is bringing "climate refugees" here.

You're correct that our prices have skyrocketed.  Looking at homes sold in 2017 that had sold even just a few years before, we see a price difference in many of them as high as 40 to 60% increase in just a couple of years.  Our  challenge on Vashon is that we have such a tiny inventory of homes for sale in any given time.  There are a sizable number of homes that have stayed in one family through three generations on Vashon.  The demand is very high, and the supply is very low.  that has driven our price increases even when it wasn't such a hot market.

As for buying a home here for your son, all I can recommend is that he save like mad, keep his credit score high, and stay in touch with what's happening in real estate.  I was thrilled to get a family into a lovely home just weeks ago using a VA loan.  For many years these have been scorned by the real estate community because they implied that the buyers couldn't really afford a house without down payment assistance and that the loan process would be harder and take twice as long as a normal transaction.  Happily, that's not true.  My clients were able to save their money for other expenses, the veteran was able to use his benefits and we closed in record time.

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