Kirkland, Washington has long been overshadowed by Seattle and Redmond. However, the sheer demand for real estate in the Puget Sound area has led many people to move here. The Kirkland real estate market became very hot in 2018. The Kirkland housing market cooled off in 2019. Is it the right time to invest in Kirkland, Washington real estate?
Let’s learn more about Kirkland before discussing whether or not this is a good time for Kirkland real estate investment. Kirkland is home to roughly ninety thousand people. That makes it the sixth largest city in King County, Washington and one of the larger suburbs of Seattle.
The city sits on the water, though this limits the ability to expand now that everything has grown up around it. Kirkland is ideally situated. It is within commuting distance of Bellevue, Redmond and Seattle. Let’s learn about factors that affect the state of the Kirkland real estate market and determine whether or not you should consider Kirkland real estate investment today. In the latest quarter, real estate appreciation rate in Kirkland has been around 1.35%.
If it remains steady, the annualized appreciation rate would be around 5.42%, which could trigger good amount of interest in the Kirkland real estate investment opportunities. In this article, we shall discuss some more important reasons why you may want to consider buying Kirkland investment properties in 2020. Please note that there are many variables that can potentially impact the value of a home in Kirkland (or any other market) and some of these variables are impossible to predict in advance.
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Kirkland Real Estate Market Forecast 2020
What are the Kirkland real estate market predictions for 2020? Kirkland housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. The latest real estate data from Zillow shows that the current median home value in Kirkland is $390,914. Kirkland is currently a seller's real estate market – which means that the demand from buyers is exceeding the current supply of homes for sale. Pricing of homes is trending higher and is more attractive for sellers in the current phase.
The Kirkland real estate market forecast is that home prices will increase by 5.1% in the next twelve months. Since 2015, the median home price in Kirkland has increased from $492,000 to $801,000.
Here is the Kirkland, WA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 5.1% till Dec 2020.
The median list price per square foot in Kirkland is $454, which is higher than the Seattle-Tacoma-Bellevue Metro average of $286. Zillow reports that 4.9% of the listings in Kirkland had a price cut in Dec 2019, which is a good thing for buyers. The median price of current listings in Kirkland is $789,000. Homes are selling below their asking prices as the median price of homes that have been sold out is $764,600. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices.
Kirkland Real Estate Market Trends
We shall now discuss some of the most recent housing trends in the Kirkland area and compare it with past couple of years. We shall mainly discuss about median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region. Trulia has currently 196 resale and new homes for sale in Kirkland, WA including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median price of sold homes in Kirkland is $740,000 and homes are selling for about $465/sqft.
As per the real estate company called Neigborhoodscout.com, the median house price in Kirkland is $767,541, which indicates that home prices in Kirkland are well above the national average for all cities and towns in the United States. Three and four bedroom single-family detached homes are the most common housing units in Kirkland. Other types of housing that are prevalent in Kirkland include duplexes, row houses and homes converted to apartments.
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.
There are currently 84 single family homes for sale in Kirkland, WA on Zillow. Additionally, there are 39 single family homes for rent in Kirkland, WA. Under potential listings, there are about 1 Foreclosed and 14 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
In the past month, 84 homes have been sold in Kirkland, WA on Redfin.com. In addition to houses in Kirkland, there were also 60 condos, 19 townhouses, and 2 multi-family units for sale in Kirkland last month. The median listing price is around $1.05M. According their statistics, the Kirkland housing market is very competitive. Homes in Kirkland receive 2 offers on average and sell in around 18 days.
The average sale price of a home in Kirkland was $687K last month, down 4.5% since last year. The average sale price per square foot in Kirkland is $418, up 4.0% since last year. A hot listing in Kirkland can sell for about 1% above list price and go pending in around 4 days.
Here is the latest Kirkland housing market data for the month of Jan 2020 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s real estate market in the past month.
Kirkland Housing Market Trends |
|
| Median List Price | $1.05M |
| Avg. Sale / List | 98.9% |
| Median List $/Sq Ft | $493 |
| Median Sale Price | $687,000 |
| Median Sale $/Sq Ft | $418 |
Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. There are currently 260 homes for sale in Kirkland on Realtor.com. The asking price of single family homes can start from $525,000 and can go up to $8.3M for a luxury property located in the neighborhood with zip code 98033. In this neighborhood home values have fallen by approximate 1% over the past 12 months. Zillow predicts the home values in this neighborhood will increase by 0.2% in the next 12 months.
Kirkland has a mixture of owners and renters, with 63.91% owning and 36.09% renting. There are currently 92 rental properties in Kirkland and their rent prices range from $800 to $6,900 per month. The median rent price in Kirkland is $1,990. There are only 64 new construction homes for sale in Kirkland within a price range of $738,900 to $3.39M. The most affordable new construction homes are located in South Juanita neighborhood in the city of Kirkland, WA. South Juanita is a popular neighborhood of Kirkland with the median home price of $525,000.
According to Realtor.com, in December 2019, the Kirkland housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale. Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Kirkland, the sellers have held good leverage in these negotiations in the past month. On an average, they could sell homes for 99.65% of the asking price. A seller would always prefer scenarios which can yield a ratio of 100% or higher.
In December 2019, the median list price of homes in Kirkland, WA was $898K, trending up 3% year-over-year. The median listing price per square foot was $459. The median sale price was $770K.
The median list price in Kirkland, WA is $1,159,970 on Movoto.com. The median list price in Kirkland went down 6% from January to February. Kirkland's home resale inventories is 162, which increased 4 percent since January 2020. The median list price per square foot in Kirkland is $519.
As you can see in the graph, the median price per sq ft in Kirkland rose to its peak value in Dec 2019, when it was $511. In January 2020 it was was $511. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in February.
Kirkland is a minimally walkable city in King County with a population of approximately 48,669 people. If you are looking to invest in the Kirkland real estate, you should that three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Kirkland investment real estate and you should be able flip it for a lump sum profit.
The neighborhoods in Kirkland must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools and shopping malls. Lakeview has a median listing price of $2.5M, making it the most expensive neighborhood of Kirkland. Everest is the most affordable neighborhood, with a median listing price of $300K.
Some of the most popular neighborhoods are Windermere, Finn Hill, Evergreen Hill, South Juanita, Northeast Seattle, View Ridge, Education Hill, South Rose Hill, Yarrow, Hunts Point, Hawthorne Hills, Lake City, North Rose Hill, North Seattle, Bridle Trails, Grass Lawn and Lake Washington Boulevard Beach.
Here is a snapshot that shows the median home values in the some of the neighborhoods of Kirkland.
Kirkland, WA Foreclosures And Bank Owned Homes Statistics
As per the Kirkland foreclosure data given by Zillow, in Kirkland 1.7 homes are foreclosed (per 10,000). This is greater than the Seattle-Tacoma-Bellevue Metro value of 0.8 and also greater than the national value of 1.2. The percent of delinquent mortgages in Kirkland is 0.4%, 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 Kirkland homeowners underwater on their mortgage is 3.5%, which is lower than Seattle-Tacoma-Bellevue Metro at 4.2%.
| Total No. of Foreclosures in Kirkland | 13 (RealtyTrac) |
| Homes for Sale in Kirkland | 26 |
| Recently Sold | 780 |
| Median List Price | $812,000 (10% drop vs Nov 2018) |
There are currently 13 properties in Kirkland, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 26. In December 2019, the number of properties that received a foreclosure filing in Kirkland, WA was 0% higher than the previous month and 67% lower than the same time last year.
Is Kirkland a Good Place For Real Estate Investment?
Is Kirkland a Good Place to Invest In Real Estate? Investing in real estate is touted as a great way to become wealthy. Is buying an apartment in Kirkland a good investment? Many real estate investors have asked themselves if buying a property in Kirkland is good investment? You need to drill deeper into local trends if you want to know what the market holds for the real estate investors and buyers in 2020. If you are looking to make a profit, you don’t want to buy the most expensive property on the Kirkland real estate market and expect to make a good profit on rents.
Perhaps you are looking for a slightly different hold-over, an investment property in Kirkland that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider. Let’s now discuss state of the Kirkland real estate market, which can help investors who are keen to buy an investment property in this city.
Kirkland Home Prices
The average home in the Kirkland real estate market is between 750,000 and 800,000 dollars. The cooling of the housing market is relative. The price of a potential Kirkland real estate investment went down 1 percent in 2019. That is significant in a real estate market that went up 5 to 10% per year for several years. A Kirkland real estate investment is projected to increase a more modest 5 percent in 2020. These trends are roughly in line with Seattle’s property market.
Seattle properties are slightly more expensive, and that is why Seattle home prices fell 2.3 percent last year and will only rise 4 percent in 2020. The Kirkland housing market is plagued by limited supply. Everything’s built up, and redevelopment is expensive. People who’ve bought homes are unlikely to move. This is why there is perhaps one month’s inventory in the Kirkland housing market. For comparison, a healthy housing market has a three to six month’s supply.
The market is very competitive, rating an 86 out of 100 on Redfin’s rankings. A balanced real estate market would rate a 50. This is why we can expect Kirkland property prices to remain high. Washington State has more home owners than neighboring California. Roughly 14 percent of residents rent instead of own. The Seattle metro area has the highest concentration of renters in the state. A little over a third of residents rent here. Yet that is in line with the national average.
Where the Seattle area stands out is in rental rates. The average rent for an apartment is around 2000 dollars a month. A one bedroom apartment costs about 1850 dollars a month, while a two bedroom apartment costs around 2500 dollars a month. You can charge similar rates in the Kirkland real estate market. You can charge more than three thousand dollars a month for a single family home in the Kirkland housing market. That’s a point in favor of the Kirkland housing market, since it offers decent returns.
Job Growth in Kirkland
Kirkland’s job market is strong. Unemployment rates hover around 3 percent, a full percentage point below the national average. Job growth is expected to be 40 percent over the next ten years, well above the national average. Average incomes are nearly 50,000 dollars a year, while the median household income is 90,000 dollars a year. For comparison, the average American earns a little less than thirty thousand dollars a year, and median household income is a little over 53,000 dollars a year.
The high average pay rates in Seattle are largely due to the high tech sector. This includes companies like Microsoft, Google, Astronics, Inrix and Boeing. The large, high-tech sector means there are more young adults and young families in the Kirkland housing market. Demographic momentum will generate continual demand for real estate in the Kirkland area for years to come.
One point in favor of the Seattle area over other high-tech hubs is its relative affordability. In fact, many firms are relocating from San Francisco to Seattle so that their employees can afford to buy homes. This is going to inflate the Kirkland real estate market and accounts for its rapid rebound.
Taxes
Washington State has an average tax burden. Its state and local tax burden is 28 out of the 50 states. The state doesn’t have an income tax. An owner of Kirkland real estate investment properties won’t have to worry about their high sales taxes. The state is roughly average on property taxes. The average Kirkland real estate market property tax bill is 0.85 percent of the home’s value. Note that this is a bargain compared to other hot real estate markets in the area, including anything in California.
The Legal Climate
Washington State is renter-friendly, though that’s the norm for the west coast. However, it is far better than surrounding regions. For example, Oregon passed state wide rent control in 2019. Washington State doesn’t require you to have a rental license to be a landlord. It doesn’t require a written rental agreement unless you collect a deposit or late fees, though Kirkland real estate investment properties should have a written agreement in order to protect the property owner.
Quality of Life in Kirkland
People won’t move across the country for quality of life, but it will cause people to relocate within a given metro area. Kirkland was ranked the fifth best place to live in America by Money Magazine in 2014. The Kirkland real estate market attracts people in part for its relatively affordable single family homes and its excellent schools. The Kirkland housing market is bolstered by the massive high tech campuses, advanced public transit and relatively walkable communities.
The city has been building modern urban villages that combine offices, apartments and retail to cater to Millennials who want to live a car-free life. Kirkland is also a higher education hub. There are more than a dozen colleges and universities within fifteen miles of the city. However, it is not a college town. This means you can buy Kirkland real estate investment properties catering to students but won’t worry about its value rising and falling relative to the popularity of a particular school.
Investing in Kirkland Real Estate or Not: The Conclusion
Maybe, you have done a bit of real estate investing in Kirkland, 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. Should you consider Kirkland real estate investment? Kirkland saw a minor adjustment in housing prices in 2019. However, the Kirkland area is going to resume slow, steady appreciation for the next few years thanks to its expanding high-tech sector. It is also a better housing market for investors than other high-tech hubs.
A good cash flow from Kirkland investment properties 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 Kirkland real estate investment opportunity would be a key to your success. If you invest wisely in the Kirkland real estate, you could secure your future. As with any real estate purchase, act wisely. Evaluate the specifics of the Kirkland housing market at the time you intend to purchase.
Hiring a local property management company can help in finding tenants for your investment property in Kirkland. If it is your first time to invest in Kirkland real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your own research or hiring a real estate investment specialist for guidance.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. 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 Kirkland real estate in 2020. 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 Good Markets To Invest in Real Estate in 2020
Another good market to invest in real estate in 2020 is Chapel Hill in North Carolina. The Chapel Hill area is an excellent place for real estate investment if you can afford the entry costs. It offers high rental rates, a property-owner friendly legal climate, low taxes and good long term prospects. One point in favor of investing in the Chapel Hill real estate market is the relatively young population. The large student population here has resulted in nearly a third of the population being between 18 and 24. And it is why the job market is expected to see job growth about one percent higher than the national average over the next ten years.
The other good place for real estate investment is Naperville in Illinois. The Naperville real estate market is one of the best options should you choose to invest in the state of Illinois. On the other hand, we advise against investing in Chicago real estate on the whole, with the Naperville housing market being the only exception.
Remember, caveat emptor still applies when buying a property anywhere. Some of 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.
References:
Property values
https://www.rentjungle.com/average-rent-in-seattle-rent-trends/
https://www.kirklandreporter.com/business/kirkland-real-estate-market-transitions-into-fall/
Taxes
https://taxfoundation.org/state/washington/
Legal climate
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters/
https://www.avail.co/education/laws/washington-landlord-tenant-law
https://www.npr.org/2019/03/30/708302378/oregons-experiment-in-statewide-rent-control
Job market
https://www.bestplaces.net/economy/city/washington/kirkland
https://www.kirklandwa.gov/Business/Economic_Development/EDKirkland.htm
Latest Market Prices, Trends & Forecasts
https://www.zillow.com/kirkland-wa/home-values/
https://www.redfin.com/city/9148/WA/Kirkland/housing-market
https://www.movoto.com/kirkland-wa/market-trends/
https://www.movoto.com/kirkland-wa/market-trends/
Map
https://www.google.com/maps/place/kirkland
Foreclosures
https://www.realtytrac.com/statsandtrends/wa/king-county/kirkland/
