2007 Puget Sound Economic Forecast*
These are the highlights of the annual growth and forecast report given by Mike Grady – President and Designated Broker of Coldwell Banker Bain at their annual award ceremony.
- More than 30,000 net new jobs will be created each year for the next 3 years.
- The Average population growth will increase nearly 3% each year for the rest of the decade – 180,000 new people annually.
- Building permits will be further restricted by Growth Management and Critical Areas ordinances to less than 50,000 for the entire state, resulting in fewer subdivisions and more expensive building lots.
- Due to fewer building permits than jobs or population growth, housing prices will continue to appreciate in value significantly.
- Interest rates will remain “reasonable,” around 7%, in 2007 and will probably hover in that range for the balance of the decade.
- Gen X and Gen Y – the largest combined demographic segment of the population – will continue to purchase their first and second homes.
- Baby Boomers, the next largest segment will continue to lead the charge as they purchase or sell their last “big” home.
*Forecast derived from information from The State of Washington Department of Financial Management, The Real Estate Research Center at Washington State University, Herbert Research and Washington State Employment Security.
