The state of Washington sits above Oregon in the pacific northwest and enjoys the economic growth that a strong timber industry and a heavily utilized port trade provide. The housing market in Washington has benefited greatly from an influx of Californians. The new additions to Washington are eager to enjoy the lower housing costs in the state while still being able to telecommute to jobs in California or find work in the newly expanding technology industry in Washington itself.
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The 2002 US census data showed that Washington had a moderately sized housing market, with a total of 2,530,215 housing units in the state. The home ownership rate for the state was listed in the 2000 census as 64.6%, which is slightly lower than the national average that year of 66.2%. The lower than average home ownership rate can be partially explained by the higher than average home costs. The median value of an owner occupied housing unit in Washington was listed in the 2000 census as $168,300. That number is substantially higher than the national average, which was $119,600 that year.
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The recent housing boom, combined with the steady influx of out-of-state home buyers has steadily driven the housing market in Washington to an unnaturally high level. Unlike the rest of the country, where the housing boom is starting to cool, the housing market in Washington shows little sign of slowing. Western Washington is especially hot at the moment, with the supply of existing homes being over 25% lower than the levels recorded in 2004.
The sales of homes this year are also 20% higher than the same period in 2004. The housing market is highly biased towards the seller at the moment, with many buyers gambling on the market continuing to climb for several years. If the market does continue to climb, many buyers would be wise to get in while houses are still in their price range. However, there is no indication that the housing market in Washington is invincible, and several analysts suggest that the market cannot sustain the current trends for much longer. If the bubble does burst, the resulting tumble in market prices could severely damage the market. Although this is a danger, most sources agree that the market is more likely to slowly cool rather than crash. This is based on the newly bolstered job market in Washington, which would likely soften the blow.
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