What Impact Does The Tech Industry Have On Puget Sound Real Estate?

As far as market movers go, jobs in STEM (Science, Technology, Engineering, and Math) are the single biggest movers of Seattle’s real estate market.  So let’s dive into some numbers reflecting STEM jobs.

1. Boeing employs 71,881 people in Washington State (PSBJ).  Per Glassdoor, the average salary for an Engineer is $86,500.  There are additional things to factor into Boeing’s salaries.  Boeing’s share price has risen 116.31% in the last two years (from $163.42 on Jan 1, 2017 to $353.49 at the time I’m writing this). Additionally, Boeing paid out a $600m performance bonus in Spring of 2018 to Washington State employees.  Considering this, it doesn’t matter what you do for Boeing – If you’ve been there for any length of time, you’ve had a good run.
   On a side note, the $600m bonus was spread equally amongst the 71,881 Washington State-based employees.  This equals $8,347.13 per employee.  It probably wasn’t spread exactly equal amongst all employees, but is a good benchmark.
2. Seattle/Puget Sound has 165,264 jobs in the Tech Industry.  In Seattle, tech-related jobs occupy 42% of all office space in the city.
3. According to a recent report, over the last couple years, Seattle led the nation in tech growth. 33,803 tech jobs were added, with a growth rate of 25.7%.  Silicon Valley only added 24,971 in the same timespan.
4. The average annual salary for a software engineer in Seattle is $130,915.
5. Currently, Indeed.com has the following positions listed:
   1. 98 full-time engineering jobs at Boeing
   2. 8,815 full-time jobs at Amazon
   3. 257 full-time jobs at Facebook
   4. 158 full-time jobs at Google
   5. 1,116 full-time jobs at Tableau
   6. 256 full-time jobs at F5 open
   7. 210 full-time jobs at Zillow
   8. 264 full-time jobs at Expedia
   9. 2,444 full-time jobs Microsoft
   10. 313 full-time jobs at TMobile
   11. 92 full-time jobs at DocuSign

More Jobs Equals More Homebuyers

We know buyers didn’t buy in 2018.  But that doesn’t mean the region didn’t add (or is adding) a lot of potential homebuyers to the mix for 2019.  As always we’ll see what happens.  But it’s good to know that despite a down year in 2018, the economic fundamentals supporting Seattle’s housing market are very strong.

Interest Rate Check-In

Per Bankrate.com, the 30 Year Mortgage interest rate fell to 4.63%, with .37 in discount and origination points.  Rates have fallen .47% in the last couple of months. Rates are .43% higher than the 52-week low-interest rate of 4.2%

Bankrate’s Weekly Mortgage Rates

The benchmark 30-year fixed-rate mortgage fell this week to 4.63 percent from 4.68 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.18 percent. Four weeks ago, the rate was 4.83 percent. The 30-year fixed-rate average for this week is 0.47 percentage points below the 52-week high of 5.10 percent and is 0.43 percentage points greater than the 52-week low of 4.20 percent.

The 30-year fixed mortgages in this week’s survey had an average total of 0.37 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 4.72 percent. This week’s rate is 0.09 percentage points lower than the 52-week average.

• The 15-year fixed-rate mortgage fell to 4.07 percent from 4.11 percent.
• The 5/1 adjustable-rate mortgage rose to 4.27 percent from 4.26 percent.
• The 30-year fixed-rate jumbo mortgage fell to 4.54 percent from 4.55 percent.
• At the current 30-year fixed rate, you’ll pay $514.44 each month for every $100,000 you borrow, down from $517.44 last week.
• At the current 15-year fixed rate, you’ll pay $743.20 each month for every $100,000 you borrow, down from $745.21 last week.
• At the current 5/1 ARM rate, you’ll pay $493.11 each month for every $100,000 you borrow, up from $492.53 last week.

Results of Bankrate.com’s weekly national survey of large lenders conducted January 9, 2019 and the effect on monthly payments for a $165,000 loan:

The “Bankrate.com National Average,” or “national survey of large lenders,” is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison.  https://www.bankrate.com/mortgages/analysis/

City of Seattle Stats for Single Family Residences – 1.8.19

These charts are Seattle Specific, but the Puget Sound Real Estate Market mirrors the Seattle market.

Scott Sheridan is a Loan Officer with Primary Residential Mortgage, Inc.  Being in the mortgage industry for three years, Scott brings a fresh millennial flair to the industry. He is well-versed in the most modern, efficient, and convenient ways to get things done. Scott combines these skills with a genuine love of his work and recent experience in what is it like to be a first and second-time home buyer.  You can follow Scott’s weekly market updates on his PRMI Facebook Page.