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October 3rd, 2019 by Marco Santarelli
How is The Vancouver, WA Real Estate Market in 2019?
If you’re keen to invest in the Vancouver WA real estate market 2019 and buy before prices become out of reach, you must read till the end. Vancouver, Canada is one of the hottest real estate markets on the planet. It is so bad that Canada passed many rules to cool it down. What many don’t know is that it has a sister of sorts – Vancouver, Washington.
Vancouver, Washington is smaller and less well known than big cities like Seattle, but it has many points in its favor. Despite sharing the same name, Vancouver, Washington is not across the Canadian border from Vancouver, BC. Vancouver, Washington is on the southern side of Washington State.
It sits on the Washington-Oregon border. It is actually a suburb of Portland, Oregon. And Vancouver, Washington was founded years before its cousin in Canada. Is Vancouver, WA going to be one of the hottest real estate markets for investors in 2019 & 2020? Let’s take a deep look at the latest Vancouver WA housing market trends to come to a conclusion.
Vancouver WA Real Estate Market Forecasts 2019 & 2020
The real estate data from Zillow shows that the median home value in Vancouver is $324,600. Vancouver home values have gone up 4.3% over the past year and their Vancouver real estate market prediction is that the prices will rise 1.4% within the next year. The median list price per square foot in Vancouver is $209, which is lower than the Portland-Vancouver-Hillsboro Metro average of $232.
The median price of homes currently listed in Vancouver is $384,500 while the median price of homes that sold is $338,100. The median rent price in Vancouver is $1,825, which is lower than the Portland-Vancouver-Hillsboro Metro median of $1,995.
Here is the Vancouver, WA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.4% till Aug 2020.
Vancouver WA Real Estate Market Trends
According to real estate experts, the Vancouver WA real estate market is one of the healthiest markets in the United States. The trends show that the Vancouver WA home prices will continue to rise in 2020 but at a slower pace than this year.
This year the Vancouver WA real estate market trends showed stability and affordability. The median home value in Vancouver, Washington rose by more than 6% over the last year or so, from April 2018 to April 2019. According to Sammamish Mortgage, they expect the home values within the Vancouver real estate market to rise by around 2.3% over the next 12 months. This prediction was made in April 2019, so it extends into the summer of 2020.
Currently, Trulia has 1,430 resale and new homes for sale in Vancouver, WA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sale price in Vancouver, WA is $346,000. Homes are selling for about $217/sqft.
In the past month, 442 homes have been sold in Vancouver, WA on Redfin.com. In addition to houses in Vancouver, there were also 123 condos, 88 townhouses, and 7 multi-family units for sale in Vancouver last month. As per their real estate data, the Vancouver WA housing market is somewhat competitive. Homes in Vancouver receive 2 offers on average and sell in around 21 days.
The average sale price of a home in Vancouver was $342K last month, up 0.93% since last year. The average sale price per square foot in Vancouver is $200, up 6.1% since last year. Homes typically receive 2 offers.
Homes in the Vancouver housing market sell for around list price and go pending in around 21 days. Hot homes in Vancouver, WA can sell for about 1% above list price and go pending in around 6 days.
There are 1,203 homes for sale in Vancouver, WA on Realtor.com. 138 of which were newly listed within the last week. Additionally, there are 284 Vancouver rentals for sale, with a range of $700 to $3.2K per month. According to their statistics, in August 2019, the Vancouver, WA housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In August 2019, the median list price of homes in Vancouver, WA on Realtor.com was $375K, trending up 2.7% year-over-year. The median listing price per square foot was $199. The median sale price was $359.5K. On average, homes in Vancouver, WA sell after 54 days on the market. The trend for median days on market in Vancouver, WA has gone up since last month, and slightly down since last year.
The median list price in Vancouver, WA is $415,000 on Movoto.com. The median list price in Vancouver was less than 1% change from September to October. Vancouver’s home resale inventories is 932, which decreased 1 percent since September 2019. The median list price per square foot in Vancouver is $202. September 2019 was $203. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.
Vancouver, WA Single Family And Multi-Family Homes
Following the real estate market decline in 2007 in the U.S., single family rental homes 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 properties 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 real estate company called Neigborhoodscout.com, the median house price in Vancouver, WA is $298,225, which indicates that home prices in Vancouver are well above the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Vancouver, accounting for 53.10% of the city’s housing units. Three and four bedroom single-family detached homes are the most common housing units in Vancouver, WA.
Other types of housing that are prevalent in Vancouver include large apartment complexes, duplexes, homes converted to apartments and a few row houses and other attached homes. Vancouver has a mixture of owners and renters, with 50.32% owning and 49.68% renting.
Currently, there are 1,157 single family homes for sale in Vancouver, WA on Zillow. Additionally, there are 226 single family homes for rent in Vancouver, WA. Under potential listings, there are about 10 Foreclosed and 76 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Vancouver, WA Foreclosures And Bank Owned Homes 2019
As per the Vancouver foreclosure data by Zillow, in Vancouver 0.5 homes are foreclosed (per 10,000). This is lower than the Portland-Vancouver-Hillsboro Metro value of 0.8 and also lower than the national value of 1.2. The percent of delinquent mortgages in Vancouver is 0.6%, 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 Vancouver homeowners underwater on their mortgage is 3.3%, which is lower than Portland-Vancouver-Hillsboro Metro at 3.4%.
There are currently 111 properties in Vancouver, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 587. In August 2019, the number of properties that received a foreclosure filing in Vancouver, WA was 12% lower than the previous month and 10% higher than the same time last year.
Best Neighborhoods to Invest in Vancouver Rental Real Estate
If you are looking to invest in the Vancouver WA rentals, 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 Vancouver WA rental real estate and you should be able flip it for a lump sum profit.
When looking to invest in Vancouver WA real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Vancouver WA rental property should be low. The neighborhoods in Vancouver, WA 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 28 elementary schools, 28 middle schools, 30 high schools and 17 private & charter schools in Vancouver, WA. There are 77 neighborhoods in Vancouver.
Some of the best neighborhoods in or around Vancouver, Washington are Northeast Hazel Dell, Sunnyside, Mill Plain, Vancouver Heights, Vancouver Mall, Arnada, Downtown Vancouver, St Helens, Old Evergreen Highway, Hayden Island, Vanmall, and Carter Park.
Felida has a median listing price of $545K, making it the most expensive neighborhood. Ogden is the most affordable neighborhood in Vancouver, WA with a median listing price of $308K.
Here are the best neighborhoods to invest in Vancouver WA rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest in Vancouver WA Rental Real Estate?
Now that you know where Vancouver is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Vancouver, WA a good place to invest in real estate?
Many real estate investors have asked themselves if buying a rental property in Vancouver, WA is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Vancouver WA 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 Vancouver but we have collected ten evidence based positive things for those who are keen to invest in the Vancouver rentals in 2019.
Investing in Vancouver WA rentals will fetch you good returns in the long term as the home prices in Vancouver have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Vancouver WA real estate market which can help investors who are keen to buy an investment property in this city.
We’ll focus on real reasons to invest in the Vancouver WA real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Relatively Affordable Real Estate in Vancouver, WA
The Vancouver WA housing market is the fourth largest in the state of Washington. The median home price is around 300,000 dollars. That is less than half the price of a home in the Seattle metro area.
That makes Vancouver WA real estate investment accessible to those who couldn’t afford to invest in the hotter Washington state metro areas. More importantly, the average home in the Vancouver Washington real estate market is a full 100,000 less than the comparable home in neighboring Portland.
2. The High Demand Relative to Supply
The Vancouver WA real estate market is notable for its sustained two percent vacancy rate. There simply isn’t enough housing for everyone, though geographic constraints and environmental and zoning restrictions limit where more housing can be built.
While the number of people moving to the state of Washington has dropped off, the Vancouver WA housing market continues to see people moving to the city from the rest of the state, especially rural areas.
This will continue to put pressure on a real estate market where supply is constrained. For example, moving to the Vancouver WA housing market was a solution to the Portland urban boundary. Then the Vancouver area got one of its own.
3. The Economics that Lead to Many Renters
A Vancouver WA real estate investment property will have many renters vying for it. About 40 percent of residents rent. Several factors contribute to the high rental rate and will keep it high for the foreseeable future. One is an unemployment rate one percent above the national average.
Unstable incomes preclude many from buying a home. Another factor is the cost of real estate relative to incomes. The average resident of the Vancouver area earns 26,000 a year, 2000 less than the national average, while homes are 60,000 dollars more expensive than the national average.
Many would-be home owners just can’t afford to buy a home here, though it is cheaper than Portland.
4. The Growth Rate
The Vancouver WA housing market is seeing growth because Portland has been expanding rapidly for the past few years. After growing 2 percent per year since 2010, Portland slowed down to one percent growth in 2018.
That doesn’t mean the Portland real estate market isn’t expanding. People continue to move outward to cheaper areas, fueling demand for Vancouver WA real estate investment properties.
The Vancouver, Washington area is seeing slow but steady job growth of just under one percent. That’s enough to keep residents here but not enough to cause a massive influx in or a property bubble that could kill property values over the long-run.
5. The Rising Vancouver WA Rental Rates
Rents in the Vancouver WA housing market grew nearly two percent in 2018. Rental rates and occupancy rates are being driven by people slowly moving to the area from Portland and its Oregon suburbs. That’s why rental rates in Vancouver are going up faster than those in Portland.
6. The Fact that It Isn’t in Oregon
One point in favor of Vancouver WA real estate investment is that you can cater to residents of one of the largest Oregon real estate markets without owning properties in Oregon. For example, owning homes in the Vancouver WA housing market means you’re exempt to Oregon’s statewide rent control law.
Vancouver, Washington allows you to raise rents up to 10 percent with at least 45 days’ notice. Washington and Oregon are both tenant friendly, but Washington is slightly points lower than Oregon, and that’s a point in favor of it from a landlord’s perspective.
For example, Washington doesn’t have limits on security deposits. The 45 day notice to raise rents don’t affect the 3 days they have to vacate for non-payment of rent or ten day notice you can give for failure to comply with the terms of the lease.
7. The Tight, Affordable Vancouver WA Real Estate Market
One trend we’re seeing in the Vancouver WA real estate market is gentrification. Cheap and run-down buildings are torn down in favor of luxury condo and apartment buildings. There is very little housing stock in the “affordable” range, and that’s driving up rental rates for this market segment faster than the 2 percent growth seen across the market.
This means you could convert houses into multi-family units or create denser micro-apartments and see significant returns on the investment. The Portland area is one of the few in the country where single resident occupancy and micro-apartments are both increasing and increasingly approved.
8. The Better Quality of Life
We’re not going to tell you to buy property in the Vancouver WA real estate market because of beautiful landmarks and famous festivals in the area. Vancouver WA real estate investment should be based on the market fundamentals. The area has expensive real estate, but the question is if it will retain its value.
We’d argue that a property in the Vancouver WA housing market will retain its value and appreciate more than Portland because this Portland suburb is not as accommodating to homeless people. This mirrors the problems in San Francisco.
There’s only so long people can trade off 100K Big Tech pay rates for living in a box and stepping around poop on their way to the way to a job.
This means the Vancouver area will benefit from local migration as people move across state lines for lower taxes, lower crime and a literally better environment.
9. The Better Tax Climate
Washington state pays most of the bills with a high sales tax. It doesn’t have an income tax. This means you won’t have to pay income taxes on the revenue from a property in the Vancouver WA real estate market.
A side benefit of the Vancouver WA real estate market is the flat property tax rate. The average tax bill is around one percent, slightly less than the national average.
10. The Sizable Student Market
The Vancouver WA real estate market has a sizable student market. Better yet, it isn’t limited to a single school. Washington State University Vancouver has more than three thousand students. It is the second largest Washington State campus. Gateway Seminary is home to around two thousand graduate students.
Vancouver WA Real Estate Investment
Maybe you have done a bit of real estate investing in Vancouver, 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 Vancouver WA real estate investment opportunity would be a key to your success. If you invest wisely in Vancouver WA rental 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 Vancouver WA rentals are, 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 Vancouver, WA 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 Vancouver, WA. Vancouver, Washington is a steadily growing, appreciating real estate market. Investors here will profit from Portland’s mistakes while earning greater returns than if they invested in one of the more expensive housing markets in the region.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives 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.
The aim of this article was to educate investors who are keen to invest in Vancouver 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.
Other Best Places To Invest in Real Estate in 2019
Another good market to choose for investment is Rochester, NY. The Rochester housing market is stable, offering slow appreciation, affordable properties to outsiders and good returns. It has strong, long-term potential that is only buoyed if NYC collapses. And this is one of the reasons why being everything the Big Apple isn’t is in your favor.
The Rochester real estate market exists in an area formerly derided as the Rust Belt. It has seen a decline in population though leveled out, with many moving to the suburbs full of colonial homes instead of dense inner cities.
The population decline means that there is little new home construction, though older housing stock is torn down. This means that there will not be a wave of new construction to meet an increase in demand, while removal of blighted areas and deteriorating housing stock is abandoned.
The other best place to invest in real estate is Frisco, Texas. Frisco is a rapidly growing and appreciating suburb in the Dallas-Fort Worth area. It is so desirable that it attracts locals relocating to the area in addition to those moving to Texas thanks to its lower tax burden, cheaper real estate and improved quality of life.
If you’re considering Frisco real estate investment, one point in favor of this area over other Dallas suburbs is the diversified real estate market. Frisco was one of the local pioneers in mixed use developments, walkable neighborhoods modeled off older downtown areas.
This is attractive to Millennials. Frisco is also rapidly building multi-family housing, though this is barely keeping up with demand. Yet the Frisco real estate market retains a large number of single family homes.
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.
*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.
It’s not Oregon
Better Tax Climate
Better quality of life
Rising rental rates
Tight affordable real estate market
Economics and renting
Market Prices, Trends & Forecasts
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