Seattle home prices to drop another 20 percent
If you're one of those homeowners who is always looking for shreds of optimistic news about the Seattle market, well, you might want to avert your eyes.
Goldman Sachs is predicting that Seattle home prices will fall 20 percent in the next two years. That's twice as much as anywhere else except Portland.
Tim Ellis at Seattle Bubble had the news this morning.
Apparently, the folks at Sachs think the Seattle market is still overpriced.
"For Seattle and Portland, the model projects back-loaded price declines as house prices currently look overvalued," the report says. The report points to "high home vacancy rates and steeply rising delinquencies" as the catalysts for the projected decline.
Ellis, a consistent voice of reason in the Seattle real estate community, has been projecting a significant drop, but even he was surprised by the Goldman Sachs report.
"I don't have a PHD in finance, and I haven't constructed a 6-variable model of home prices, but my estimates have been for only another 10-15% decline in Seattle area home prices, so I was a bit surprised to see such a dramatic call from Goldman,"
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