Not so fast. Four reasons why Seattle is not in a bubble.
Balance Sheets Remain Healthy
Americans are saving their money again and putting more money down on their homes when compared to pre-2008 levels. The average downpayment for home buyers now sits at 8%, much higher than the risky very small or zero downpayment mortgages that contributed to the bubble we saw a decade ago. The estimated total value of all real estate in the US is $25 Trillion, $15 trillion of which is equity. Equity has risen steadily while debt has remained level. Historical comparisons show our collective housing balance sheet remains manageable and healthy. All this means is that Americans have a more sturdy cushion underneath them.