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August 2013

News In Brief - August 2013

By NWREporter

August 2013

  • Nearly two-thirds of all home purchase offers written in the Seattle area face competition from at least one other deal, according to a new survey released by Redfin. Seattle is ranked as the sixth most competitive market while San Francisco leads the pack. In May, nearly 70 percent of the offers written by Seattle-based Redfin real estate agents faced multiple offers. However, that is down slightly from 73.3 percent of offers with multiple bids in April, according to the real estate brokerage's May 2013 Bidding War Report, which compiled stats from 2,000 offers written by its agents. As the number of home sales increases in many markets, competition is easing somewhat in many markets, according to the report. California continues to hold some of the most competitive housing markets, with buyers most often facing multiple bid situations.  According to the Redfin report, the following markets were the most competitive in May:

    1. San Francisco Percent of offers that faced competition: 87.9%
    Percent of offers that were over the asking price: 96.8%
    2. Los Angeles Percent of offers that faced competition: 86.1%
    Percent of offers that were over the asking price: 25%
    3. Orange County Percent of offers that faced competition: 83.9%
    Percent of offers that were over the asking price: 58.1%
    4. San Diego Percent of offers that faced competition: 72.6%
    Percent of offers that were over the asking price: 60.9%
    5. Boston Percent of offers that faced competition: 68.1%
    Percent of offers that were over the asking price: 56.5%
    6. Seattle Percent of offers that faced competition: 67.4%
    Percent of offers that were over the asking price: 60.6%
  • The Millennial generation is showing different housing preferences than previous generations, and some analysts say that Baby Boomers may be growing concerned that they will have a tough time selling their suburban, larger homes due to the Millennials' differing tastes. The Millennial generation has been called a key to the housing recovery, and housing professionals are taking careful note of how the younger group's housing preferences differ from previous generations. A new survey by the Urban Land Institute's Terwilliger Center for Housing shows that about 60 percent of the millennial generation prefer a mix of housing choices and prefer to be near shops, restaurants, offices, and transit. Seventy-five percent of Millennials say they value walkability. Of the 63 percent of Millennials who say they plan to move within the next five years, about 40 percent say they expect to move to multifamily housing. One of the biggest obstacles facing this generation is student loan debt. Fifty-four percent of those aged 22 to 32 said that debt is their biggest financial concern. Forty-two percent referred to their debt as "overwhelming."

  • Washington state now has the nation's fourth fastest growing economy, partially fueling the uptick in housing demand. Some of the states seeing the biggest increases are expanding due to booming energy industries, such as in Texas and North Dakota. Population growth is also fueling some economies. The top five states for GDP growth were also among the five largest for population growth last year. The following are the states with the fastest growing economies, based on GDP growth:

  • 1. North Dakota GDP growth: 13.4%
    1-year population change: 2.17%
    2. Texas GDP growth: 4.8%
    1-year population change: 1.67%
    3. Oregon GDP growth: 3.9%
    1-year population change: 0.80%
    4. Washington GDP growth: 3.6%
    1-year population change: 1.08%