Seattle tops charts for “strongest economy” in America

Seattle’s metropolitan area is the strongest local economy in the nation according to Policom Corp., an independent economic research firm that specializes in analyzing local and state economies.

Using an analysis of 23 different economic factors, Policom compared the nation’s 366 metropolitan statistical areas and 576 micropolitan areas. (Editor’s note: The Office of Management and Budget, as a result of the 2000 census, redefined Metropolitan Statistical Areas and established Micropolitan Areas.)

In capturing the top ranking, the Seattle-Tacoma-Bellevue area improved on its 12th place position in 2009. In 2006, it ranked No. 51 in the country.

Rounding out the list of top five strongest economies for 2010 were:

  1. Washington-Arlington-Alexandria,
  2. Denver-Aurora-Broomfield, CO
  3. Houston-Sugar Land-Baytown, TX
  4. Sacramento-Arden-Arcade-Roseville, CA

“The top rated areas have had rapid, consistent growth in both size and quality for an extended period of time,” William H. Fruth, President of Florida-based Policom. Read More

Brokers Cite Tax Credit and Rising Consumer Confidence with Stabilizing Housing Activity Around Washington State

NWMLS, KIRKLAND, WA, May 5, 2010 – "While the tax credit has gone away, the buyers haven't," observed OB Jacobi, a board member of the Northwest Multiple Listing Service. Commenting on the MLS summary report for April, Jacobi described the tax incentives, which expired April 30, with being the "lubricant the market needed," but credits rising consumer confidence with "driving the engine now." read more...

Real Estate Outlook: Up or Down?

You may have seen the latest home sales and price numbers and wondered: What's going on here? Are we up? Are we down?

Depending on which TV network reported the news last week, it sounded either like real estate is continuing along its steady road to recovery - -or that we just hit a pothole in the road.

One major business news channel reported it this way: "Home sales down 14 percent in the first quarter." Other media reported an 11 percent GAIN.

So what is it?  read more...

NAR economist offers upbeat spin to the problems in U.S. market  -by Kevin Brass

“The downturn is a short term phenomenon,” Yun told attendees at the Realtor Association of Greater Miami & the Beaches‘ annual international congress, assuring the audience that key economic indicators remain strong.

“The good news is that [the market] appears to have stabilized,” the NAR economist said.

Valuations in mid-level cities like Miami, Las Vegas and Phoenix will grow 10 to 50 percent over the next five years, Yun predicted, a sharp contrast to the forecasts of continued declines offered by some economists. (Although the financial community might not be inspired by the possibility of a paltry 10 percent increase over five years.)

Yun warned of “pessimism in the marketplace,” suggesting that the media and the daily negative headlines are driving down the market. “Psychology” can turn into a “self-fulfilling prophecy,” he said. “You have to fight the self-fulfilling negative psychology in the marketplace.”

Yun was a bit vague on data to support his optimism. He touted an un-sourced survey which suggested that “77 percent of homeowners” don’t believe prices will decline, which is akin to basing the weather report on news that 77 percent of the people don’t think it will rain. (And it also suggests that people are not all that pessimistic, despite that darn media.)

Part of the reason for the stabilization in Florida, Yun noted, was an 80 percent drop in housing starts. That’s reduced the supply of shiny new Mediterranean villas, but it hardly represents a healthy industry. And he didn’t attempt to predict the fate of what he called “superstar cities,” including Los Angeles, New York and San Francisco, which he said “defy gravity.” But he did assure the audience that “99 percent of markets will have a higher value in five years.”

Lay of the Land: Recovery will start in the center, slowly

Matthew Gardner is a land use economist and prinicipal with Gardner Economics

Where were we, where are we now and where are we headed in Seattle's residential real estate market?

These are the questions that the Daily Journal of Commerce recently charged me with discussing. So I want to consider the residential markets in aggregate: past, present and future.

For the general public and developers alike, the all consuming question concerning residential, and indeed commercial development, is always relative to value. I scoured our archives and was interested to find that we have seen four periods of depreciation in housing values in our region (excluding our current contraction). These were in the late 1940's, from 1969 to 1975, 1979 to 1985, and from 1990 to 1992. Read more...

Study: Seattle has nation’s best economy

Puget Sound Business Journal (Seattle)

A study by a Florida research firm says that the Seattle area’s economy is the best in the country.

According to Policom Corp., an independent economic research firm that specializes in analyzing local and state economies, out of the nation’s 366 metropolitan statistical areas, Seattle-Tacoma Bellevue rates No. 1, moving up from last year’s No. 12 ranking. In 2006, Seattle-Tacoma-Bellevue ranked No. 51 in the country. The company uses 23 different economic factors to create its rankings.

According to Policom, the highest-ranked areas have had rapid, consistent growth in both size and quality for an extended period of time. The lowest ranked areas have been in volatile decline for an extended period of time and Policom has created economic strength rankings since 1996.

Here are the nation’s top 10 markets of all 366 markets.

2010 Ten Strongest Among 366 Metropolitan Areas

1. Seattle-Tacoma-Bellevue.

2. Washington, D.C.-Arlington, Va.-Alexandria, W.V.

3. Denver-Aurora-Broomfield, Colo.

4. Houston-Sugar Land-Baytown, Texas.

5. Sacramento-Arden-Arcade-Roseville, Calif.

6. Salt Lake City, Utah.

7. Des Moines-West Des Moines, Iowa.

8. San Diego-Carlsbad-San Marcos, Calif.

9. Madison, Wisc.

10. Dallas-Fort Worth-Arlington, Texas.

Read more: Study: Seattle has nation’s best economy - Puget Sound Business Journal (Seattle):

Here are some other articles I have found valuable!

Single Family Residential Sales by City

Eastside 2009 Single Family Residential Sales by City

Sales by City for 2010