Hey Seattle homeowners, do you trust investment bank Goldman Sachs to tell the truth? You know, the guys who bought fire insurance on an already-smoldering America, then got rich when the country went up in flames?
If the answer is no, then pay this post no mind. If it's yes, then I have bad news for you: your home is gonna be worth a lot less in two years.The lovable pessimists at Seattle Bubble are of course all over news that Goldman thinks Seattle home prices will decline by a full-fifth in just 24 months. A forecast even gloomier when you consider that that's twice as much as any other city in America besides Portland. An outlier Goldman attributes to our "high home vacancy rates," "steeply rising delinquencies" and the fact that our product is seriously overpriced.
"I don't have a PHD in finance," says the normally bearish Tim Ellis, founder of The Bubble, "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."