Published on May 29, 2019
The sounds of hammering, sawing and heavy equipment are echoing across the area these days.
It’s in stark contrast to five years ago when few new homes were being built.
“Back in 2014, we were one-at-a-timing it to eke our way through,” said Anthony Holbeck of Holbeck Construction & Design on Camano. “Now, it’s a challenge finding enough workers for the jobs. We have four homes going right now and more in the works — all custom builds.”
Low mortgage rates — averaging 4.4% for a 30-year fixed — are enabling buyers in outlying areas along the I-5 corridor to purchase in areas with cheaper prices, such as Skagit and Whatcom counties, said James Young, director of the Washington Center for Real Estate Research at the University of Washington Runstad Department of Real Estate.
“There are two key demographic trends driving prices, along with mortgage interest rates,” Young said. “Older householders trading down are competing with first-time buyers along this corridor seeking value.”
For example, an empty-nester Seattle homeowner deciding to trade down will have significant amounts of cash available from selling that home to be able to move to Mount Vernon and have cash left over, he said. Meanwhile, first-time homebuyers may look at the same relatively low-priced areas as a place to raise a family.
“With these two groups competing for value, this is a perfect storm for house price growth, particularly in regional markets,” Young said.
Continue reading at Stanwood Camano News.
Originally written by Evan Caldwell for Stanwood Camano News.