Real Estate Investing Blog
Welcome!  | Home
Your Premier Source for Turnkey Cash-Flow Investment Property
"Live Where You Want. Invest Where it Makes Sense!" ™
July 25th, 2019 by Marco Santarelli
How is The Seattle Real Estate Market Doing in 2019?
If you’re keen to invest in your future in the Seattle real estate market 2019 and buy before prices become out of reach, you must peruse till the end. Seattle is an expensive real estate market that gives many investors pause. However, there are many reasons to invest in the Seattle real estate market in 2019 and the upcoming years.
We’ll share 10 of them here after discussing the fundamentals of the Seattle housing market. Seattle is home to over 700,000 people. This makes the Seattle real estate market the largest in both the state of Washington and the Pacific Northwest.
However, the Seattle housing market is actually bigger than that – it extends to the nearly four million people in the Seattle metropolitan area. If you are a real estate investor, Seattle has a track record of being one of the best long term real estate investments in the nation.
There are a number of reasons to consider investing in the Seattle real estate. Is Seattle going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Seattle housing market trends and find out the prospects of investing in the Seattle real estate in 2019.
Seattle Real Estate Market News July 2019
According to the latest data from the NWMLS, in Seattle and King County, home prices in May were down substantially from a year ago. The price of the median home in Seattle dropped 5.4 %, to $784,925, compared to May 2018.
The year-over-year slumps were even sharper in some pricier neighborhoods. In Capitol Hill, the median price fell 6.2%, to $984,000. In Ballard, they were off 7.8%, percent, to $785,000, and in Bellevue, they were down 12.4 percent, to $902,000.
According to Zillow, the median rental price in in Seattle across all properties in June 2019 was up 3.3% year over year, to $2,569. In Bellevue, median rent climbed 3.9%, to $2,835, in the same period, while in King County, the median rent jumped 3.6% over last June, to $2,469.
According to RealPage, a housing market data firm, about 3,400 more Seattle apartment units gained new renters in the first three months of 2019 whereas only 286 units were absorbed in the in the last quarter of 2018. Only one other market in the nation, New York-White Plains, outpaced Seattle’s robust 1st quarter absorption with demand for 3,976 units.
Supply of apartment units remains elevated in Seattle, with roughly 3,000 units added every quarter for the past year, well ahead of the 10-year average for this market. On an annual basis, Seattle demand is stronger than it has been in a while, but remains below elevated supply volumes.
Seattle’s tech landscape and real estate market are rapidly evolving. Google just upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond.
GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach. Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years we have seen 50% price growth in this market which has priced out many middle class buyers.
Seattle Real Estate Market Forecasts 2019 & 2020
What are the Seattle real estate market predictions for 2019? According to Zillow.com, the median home value in Seattle is $714,600. Seattle home values have declined -5.0% over the past year and Zillow’s Seattle real estate market forecast is that the prices will fall -3.9% by June 2020. The median list price per square foot in Seattle is $526, which is higher than the Seattle-Tacoma-Bellevue Metro average of $295.
The median price of homes currently listed in Seattle is $699,000 while the median price of homes that sold is $712,300. The median rent price in Seattle is $2,750, which is higher than the Seattle-Tacoma-Bellevue Metro median of $2,400.
Here is the Seattle real estate price appreciation graph by Zillow. It shows us the current home price depreciation forecast of 2.5% till June 2020.
Seattle Neighborhoods Price History And Forecast (Courtesy Zillow)
According to LittleBigHomes.com the Seattle real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. The accuracy of the trend prediction for Seattle is 91%. Accordingly, they estimate that the probability for rising house prices in Seattle is 91% during this period. If this Housing Market Forecast is correct,
Seattle Housing Market Forecast 2019 – 2021
The Seattle housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the trend prediction for Seattle is 85%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Seattle is 85% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Seattle Real Estate Market Forecast.
Seattle Real Estate Market Trends
Seattle has been one of the hottest real estate markets in the country for years. But for the first time since 2014, homes in that area are selling below their listing price.
And that slow down could be noteworthy for homeowners across the country. According to a recent report published on Fortune.com, just six months ago, the average Seattle home sold for 6.3% above its listing price.
These days, it’s averaging 6.6% below that price. And that comes as listing prices themselves are falling, dropping 7% since the spring. Therefore, it is possible that the Seattle real estate market cool down is just a sign that buyers reached their limit after years of frenzied sales.
Last year at this time prices were up 0.7 percent month-over-month and year-over-year prices were up 12.8 percent. Seattle has fallen from #1 in year-over-year price growth back in May all the way down to #11 as of January, falling below the overall national rate.
According to January data from the Case-Shiller Home Price Index, the Seattle-area home prices were:
The Seattle real estate market trends show a decrease of $40,000 (-6%) year-over-year rise in median sales price and a 0% rise in median rent per month. The average price per square foot for this same period fell to $490, down from $503.
Trulia has 3,406 resale and new homes for sale in Seattle including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Seattle for Dec 21 to Mar 20 was $640,000 based on 1,314 home sales. Average price per square foot for Seattle was $490, a decrease of -3% compared to the same period last year.
The median rent per month for apartments in Seattle for Feb 25 to Mar 25 was $2,700.
As per the real estate company named Redfin, the Seattle housing market is very competitive. Homes for sale in Seattle, WA receive 1 offers on average and sell in around 37 days. The average sale price of a home in Seattle was $670K last month, down 2.8% since last year.
The average sale price per square foot in Seattle is $442, down 7.5% since last year. Homes typically receive 1 offer. Homes sell for about 2% below list price and go pending in around 37 days. Hot Homes in Seattle, WA can sell for around list price and go pending in around 8 days.
Seattle Housing Market Statistics
There are 3,319 homes for sale, ranging from $20K to $15.9M on Realtor.com. 399 of which were newly listed within the last week. Additionally, there are 1,350 Seattle rental properties, with a range of $550 to $12,000 per month. According to Realtor.com, in June 2019 the housing market in Seattle, WA was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
The median list price of homes in Seattle, WA was $683.8K in June 2019, trending down -1.6% year-over-year. The median listing price per square foot was $440. The median sale price was $680,000. On average, homes in Seattle, WA sell after 42 days on the market. The trend for median days on market in Seattle, WA has gone up since last month, and slightly up since last year.
As per Movoto.com, The median list price in Seattle is $715,000. The median list price in Seattle went up 2% from February to March. Seattle’s home resale inventories is 1,455, which increased 18 percent since February 2019. The median list price per square foot in Seattle is $519. February 2019 was $521. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in March.
Seattle Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, large apartment complexes or high rise apartments are the single most common housing type in Seattle, accounting for 44.63% of the city’s housing units.
Other types of housing that are prevalent in Seattle include single family detached homes ( 43.21%), duplexes, homes converted to apartments or other small apartment buildings ( 6.92%), and a few row houses and other attached homes ( 4.83%).
People in Seattle primarily live in small (one, two or no bedroom) units, chiefly found in large apartment complexes or high rise apartments. Seattle has a mixture of owner-occupied and renter-occupied housing.
Currently, there are 792 single family homes for sale in Seattle, WA on Zillow. These include upcoming potential listings. Additionally, there are 328 single family homes for rent in Seattle, WA.
Seattle, WA Foreclosures And Bank Owned Homes 2019
Looking for foreclosure homes in Seattle, WA? Foreclosures will be a factor impacting home prices in Seattle in the next several years. In Seattle 0.1 homes are foreclosed (per 10,000). This is lower than the Seattle-Tacoma-Bellevue Metro value of 0.8 and also lower than the national value of 1.2
The percent of delinquent mortgages in Seattle is 0.2%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Seattle homeowners underwater on their mortgage is 3.9%, which is lower than Seattle-Tacoma-Bellevue Metro at 4.2%.
On RealtyTrac.com, there are currently 217 properties in Seattle, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 552. In February, the number of properties that received a foreclosure filing in Seattle, WA was 40% lower than the previous month and 38% lower than the same time last year.
Home sales for January 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Seattle, WA was $0. The median sales price of a foreclosure home in Seattle, WA was $0, or 0% higher than non-distressed home sales.
Seattle Home Prices And Real Estate Appreciation 2019
Seattle real estate appreciated 52.33% over the last ten years, which is an average annual home appreciation rate of 4.30%, putting Seattle in the top 10% nationally for real estate appreciation.
In the latest twelve months, Seattle real estate appreciation rates continue to be some of the highest in the nation, at 11.31%, which is higher than appreciation rates in 97.55% of the cities and towns in the nation.
In the last twelve months, short-term real estate investors have found good fortune in Seattle. Seattle real estate appreciation rates in the latest quarter were at 3.10%, which equates to an annual appreciation rate of 12.99%.
Importantly, this makes Seattle one of the highest appreciating communities in the nation for the latest quarter, and may signal the city’s near-future real estate investment strength.
The above statistics on real estate appreciation in Seattle, WA were taken from NeighborhoodScout.com. You can visit their website for more information. Relative to Washington, Neigborhoodscout.com’s data shows that Seattle’s latest annual real estate appreciation rate is higher than 80% of the other cities and towns in Washington.
Best Places To Buy Real Estate In Seattle, WA
If you are looking to buy real estate in Seattle, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Seattle real estate and you should be able flip it for a lump sum profit.
When looking to invest in Seattle real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Seattle investment property should be low. The neighborhoods in Seattle must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 162 neighborhoods in Seattle. Magnolia has a median listing price of $1M, making it the most expensive neighborhood. Riverton-Boulevard Park is the most affordable neighborhood in Seattle, WA, with a median listing price of $404.5K.
There are 388 schools in Seattle, WA. There are 128 elementary schools, 56 middle schools, 62 high schools and 142 private & charter schools.
Seattle offers access to high quality public, private and charter school options for secondary school students. You can even choose alternative schools that integrate science, technology and engineering subjects into the required curriculum.
Here the 10 best neighborhoods in Seattle to invest in real estate (List by Neighborhoodscout.com). These neighborhoods have the highest real estate appreciation rates in Seattle. Therefore, as a real estate investor or home buyer, it makes sense to buy and hold investment properties in these top Seattle neighborhoods for getting the maximum return on your investment.
Should You Invest In Seattle Real Estate In 2019?
Investing in real estate is touted as a great way to become wealthy. Is Seattle rental property good for investment? If you are looking to buy Seattle investment properties, then you must read this. These things make Seattle real estate market stand out when it comes to choosing a place to invest in 2019 and beyond.
We have already discussed the Seattle housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Seattle but we have collected ten evidence based positive things for those who are keen to invest in the Seattle real estate in 2019.
Many real estate experts say that the Seattle’s housing market has risen to record levels fueled in part by Amazon’s historic success, but the tech giant’s hiring has slowed in recent months.
At the same time, the Seattle housing market has cooled, losing its title as the nation’s hottest real estate market. The Seattle home prices have been trending up 3% year-over-year. Let’s move on to our top 10 reasons to invest in the Seattle real estate in 2019.
1. Silicon Valley Real Estate Market Is Insane
What does the state of Silicon Valley real estate have to do with the Seattle real estate market? Quite a bit, actually. Seattle has long been a second tier technology hub, bolstered by companies like Boeing, Amazon, F5, and Real Networks.
Seattle’s strong tech ecosystem has led to a number of startups choosing to start here, but more importantly, many tech giants are setting up “outposts” here.
They’re moving jobs to Seattle so they can afford to expand or simply afford to remain in business. The influx of new high paying jobs plus relocating employees to Seattle is driving demand for homes in Seattle.
Over the past 10 years, Amazon has grown more than tenfold in the city of Seattle, from about 4,000 employees in its hometown to over 45,000.
During the same time, the median home price in the city has shot up from $420,000 to $720,000 (according to the Northwest MLS) and home prices in the metro area as a whole have gone up 47 percent.
That’s nearly twice as high as the national increase of 24 percent according to the S&P Case-Shiller Home Price Index. Between 2008 and 2018, over 535,000 homes have sold in the entire Seattle metro area.
For comparison, that’s 41 percent more than in the similarly-sized San Diego metro area. Much of this growth in the local housing market can likely be attributed to growth at Amazon.
2. California’s Oppressive Business Climate
Businesses aren’t just relocated to Seattle to tap into a growing, skilled labor market. Others are simply relocating because they cannot stay in business in California. California has the highest income taxes in the United States.
Incredibly intrusive and endlessly proliferating regulation only makes it harder for businesses to operate. While many businesses are moving to Texas, Seattle is closer both in culture and geography.
That they can find cheaper talent and real estate while gaining more freedom to operate their businesses only adds to the bottom line.
3. The Overall Growth in the Area
Seattle was the fastest growing major city in the country in 2015. It has ranked among the top 5 fastest growing cities since 2010, hitting a 3.1% annual growth in 2016. Many young people move here because it is seen as an excellent place to live and get started, and that’s aside from the strong job market.
The exodus from California to Seattle is only part of the equation, since Seattle attracts people from all over the country, and in truth, around the world.
4. How Geography Aids Property Values in Seattle
The Seattle real estate market shares many of the constraints that drove up real estate prices in San Francisco. You can’t realistically build on water. It is hard to build in the mountains.
You can build up, but that takes time and is expensive. And all the while, everyone wants to live close to the city center and jobs. This helps keep property values in the Seattle housing market high.
5. How Domestic Politics Bolsters the Seattle Real Estate Market
Environmentalist protections for large swaths of land around Seattle limit how far the city could spread out. This prevents the value of homes in the Seattle housing market from coming down as people relocate to distant suburbs, trading home values for commute time.
Building up is increasingly an option, but you can’t do that here the way they’ve done it in Miami. The financial district allows buildings to be as tall as FAA regulations allow, but that’s pretty much it.
Nor does that designation matter much, since the area is mostly built-up. The rest of Seattle is zoned low, preventing demand from being met by building condo towers. That keeps Seattle rental property rates high.
6. How Foreign Politics Affects the Seattle Real Estate Market
The United States is pretty friendly to foreign real estate buyers. Canada has limited the ability of foreign buyers to buy up properties in Canada, a major reason why Vancouver became one of the most over-valued real estate markets in the world.
This has led many Chinese investors to buy up Seattle real estate instead, making the city the third destination for foreign real estate investors.
Some hope to send kids to study in the U.S., while a few actually have children here. Others buy the properties as a way to park money overseas in a relatively low tax jurisdiction with likely returns if they choose to sell later.
Since foreign buyers don’t always rent the properties out, this drives up prices in the Seattle real estate market while indirectly constricting supply.
7. The Market Is Unexpectedly Friendly for Landlords
Many investors are reluctant to buy properties in liberal markets because they’re afraid they won’t be able to protect their investment.
However, there are a number of points in favor of Seattle, especially in comparison to Oregon and California. Washington State outlawed rent control, so you can raise rents to keep up with inflation and demand.
If a tenant breaks the lease without the landlord’s consent, the tenant is liable for rent through the end of the lease. Landlords have significant freedom in their screening questions.
If a tenant has a month to month lease, the landlord can only end it for one of 18 approved reasons, but they can end it with a written notice three weeks before the end of the month.
8. The Massive Seattle Rental Market
Around a third of people in the U.S. rent. However, in Seattle, the rate is over half. This is partially due to the cost of homes in the Seattle housing market.
Another contributing factor is that Millennials are less willing to be tied down to a home and thus prefer to rent, while Seattle is one of the top cities for attracting these young adults. They’re probably going to continue to rent instead of buying homes.
9. The Large Student Market
While we cannot say this just about the Seattle housing market, the fact remains that large cities with a strong network of educational institutions always create opportunity for those who want to own rental properties.
Students don’t buy houses – they rent. A college town with a single university sees property values rise and fall relative to the popularity of the university.
Seattle’s nearly two dozen four year colleges provide a literally diverse market for landlords catering to students, while the strong local job market mean you can rent the property out to locals if the students move out.
10. The Excellent Return on Investment
Seattle has repeatedly hit lists as being among the top cities for real estate sellers to get the highest return on their investment. Property values have gone up consistently for years.
Rental rates are high and continue to rise, guaranteeing ROI for those who buy and hold properties. We’ve already addressed the fact that you can raise rents as necessary to match the market.
This means you will certainly be able to profit from the large rental market in Seattle whether you buy and hold or buy and flip.
Seattle Real Estate Investment
Maybe you have done a bit of real estate investing in Seattle, WA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Seattle real estate investment opportunity would be a key to your success. in If you invest wisely in Seattle real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Seattle investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Seattle, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Seattle, WA. Seattle has long been second to Silicon Valley, but its strong economy, diverse population, and better regulatory climate are bringing refugees from California and migrants from around the country and world to live here. Regardless of the area’s weather, the Seattle housing market’s outlook can only be described as sunny.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Seattle, WA is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Other Best Places To Invest in Real Estate in 2019
Apart from the Seattle real estate market, you can also invest in another hot market in Spokane, WA. Spokane is a relatively cheap real estate market on the West Coast. It is already seeing increased demand and property valuations, while it remains a safe place to invest in real estate.
Skip Seattle and Silicon Valley and invest in the future growth of Spokane. One reason why Spokane long lagged behind Seattle was its higher unemployment rate. Seattle has a roughly 3% unemployment rate, significantly lower than the 5% unemployment rate seen in Spokane.
Spokane’s economy, though, is seeing a surge of higher wage jobs. Out of the tens of thousands of new jobs created since 2010, the majority of them pay more than the average county wage – which is in line with the national average. The promise of better pay will lure many people to Spokane to live, fueling demand for the Spokane housing market.
Another hot market for investors in 2019 is going to be the famous Miami real estate market. The Miami real estate market offers diverse opportunities to real estate investors, allowing you to choose which rental markets you want to cater to and profit from. However, that isn’t reason enough to consider investing in the Miami real estate market.
According to a report published by Zillow in Dec 2017, Miami was the country’s fourth most valuable housing market. Trailing only Los Angeles (total value of $2.7 trillion), New York (2.6 trillion), and Washington (996.7 trillion), the total value of Miami’s housing market is an estimated 864.2 billion, which represents a solid 4.7 percent increase year over year. Miami real estate market predictions show us that the prices will rise 3.6% within the next year.
Similarly, the Charlotte housing market forecast 2019 is that it is going to be a hot investment destination for new real estate investors. Charlotte is the largest city in North Carolina.
The city proper is home to more than 800,000 people. The metropolitan area is even larger – home to roughly two and a half million people. It is one of the country’s fastest growing metro areas, and it was the second fastest growing city in the southeastern United States. Only Jacksonville, Florida was growing faster between 2004 and 2014.
One advantage to living in a big city like Charlotte is the constant demand for homes. Buying a home in Charlotte is a better investment, depending upon several factors.
There are so many major companies and professional sporting events that people will always be interested in residing here. Therefore, interested investors aren’t likely to allow the listing prices to get to low before they swoop in and take advantage.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
The aim of this article was to educate investors who are keen to invest in Seattle real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Foreign property buyers
Silicon Valley is insane
California’s oppressive business climate
Politics affecting real estate https://www.theurbanist.org/2014/09/02/85-foot-and-125-foot-height-limits-are-a-missed-opportunity
Market Forecast And Trends https://www.realtytrac.com/statsandtrends/wa/king-county/seattle https://www.zillow.com/seattle-wa/home-values https://www.trulia.com/real_estate/Seattle-Washington/market-trends https://www.movoto.com/seattle-wa/market-trends https://www.neighborhoodscout.com/wa/seattle/real-estate https://www.redfin.com/blog/2018/10/amazon-hq2-seattle-housing-market.html https://www.littlebighomes.com/real-estate-seattle.html https://www.redfin.com/city/16163/WA/Seattle/housing-market https://www.realtor.com/realestateandhomes-search/Seattle_WA/overview https://seattlebubble.com/blog/2019/03/27/case-shiller-seattle-home-price-gains-below-average-in-january https://www.geekwire.com/2018/amazon-responsible-seattles-housing-cooldown-real-estate-experts-weigh
Add Your Comment:
(Click to download)
(Click to download)
Follow and Connect
|Call Us Toll Free: (800) 611-3060|