The Seattle real estate market always looks nearly as expensive as an overheated market. After a significant decline in the Seattle home prices in the past year, the prices have taken a good jump in the latest quarter of 2020. The shortage of homes for sale in the Seattle housing market is causing prices to rise. And so for all those reasons and more, rising property values are a positive development for homeowners and sellers in the Seattle area. The ongoing nationwide crisis has affected the real estate market of Seattle as well but not as much as we expected.
It has shown a lot of resilience and is poised to bounce back with the opening of the economy. Despite the economic downturn and disruptions stemming from the coronavirus pandemic, the Seattle housing prices are keeping strong and steady. Right now the latest news is that Seattle's housing market remains in a shortage with around one month of supply of properties on the market. There are far more buyers than there are available homes for sale. Homebuyers are trying to take advantage of lower interest rates, and the local real estate agents are struggling to meet the demand.
The latest “SEATTLE HOUSING MARKET REPORT” is given below.
In June, the median sales price in Seattle increased by 2.62% to $749,000, and months of inventory equaled 1.6. In King Couty, the median sales price increased by 5.85% to $675,000. Even before the virus hit the region, it was quite evident that if the inventory crunches further, the affordability will become a bigger issue in the Seattle housing market 2020, especially with homes in the lower tier. That trend continued to follow even during the Covid-19 epidemic. Even with the market virtually shutting down, there isn't a great drop in the open house attendance or sales activity.
For buyers in Seattle, the historic drop in the mortgage rates is a significant advantage to move forward and scoop up some properties form the market. If you are buying the interest rates have never been lower and this is typically the time of year when more listings start coming on the market. Therefore, the question is whether buyers will put their search on hold until the crisis has abated or decide to make a move. Historically low-interest rates should help the Seattle housing market sustain strong momentum during the spring-summer period. It remains to be seen just how much this pandemic will affect Seattle's housing market in the coming months.
Is Seattle still a good market for real estate investors and homeowners? Well, to answer that question we should take a look at its economy and jobs. Seattle's real estate market has always been strong, especially with tech companies bringing so many people into the city, and construction hasn't been able to keep up with that. The Seattle-area job market continues to add new qualified buyers coupled with declining inventories & falling interest rates which leads to multiple offers and bidding wars among buyers. This is the single most driving factor of Seattle home prices.
According to the U.S. Bureau of Labor Statistics, Seattle-area employment jumped 3.4% between December 2018 and December 2019, the second-largest increase in the nation after the Dallas region. Seattle is projected to see over 2.2% economic growth and 2.6% job growth. We all know that Seattle is an expensive real estate market that gives many investors pause. However, there are many compelling reasons to invest in Seattle. Seattle is home to over 700,000 people. This makes the Seattle housing market the largest in both the state of Washington and the Pacific Northwest. However, the region's housing market is actually bigger than that – it extends to nearly four million people in the Seattle metropolitan area.
Looking back historically, Seattle has a track record of being one of the best long term real estate investments in the nation. Is Seattle still going to be one of the hottest real estate markets for investors in 2020? Let's find out more about it. Please note that there are many variables that can potentially impact the value of a home in Seattle (or any other market) and some of these variables are impossible to predict in advance.
Seattle Housing Market Trends & News 2020
We shall now discuss some of the most recent real estate trends & news in the Seattle area and compare it with the past couple of years. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region. Seattle is a fairly walkable city in King County of Washington. Seattle housing market has been one of the hottest in the country for years. n the past ten years, the annual real estate appreciation rate has amounted to 6.10%, according to NeighborhoodScout.com. This puts Seattle in the top 10% nationally for real estate appreciation.
Seattle Housing Market Before COVID-19
Let's first take a look at some of the last year's real estate data for Seattle. By late 2019, Seattle home prices had begun once again to rise. Prices rose faster in October 2019 than they have for a year. In October, Seattle house prices rose 3.3% from a year ago, to $775,000 — the largest percentage increase in 12 months. According to a December 2019 report by The Seattle Times, home prices in the area had posted year-over-year gains for three months in a row.
Right from January, we saw very high demand, low inventory, and it looked like that we'd see some appreciation this year. The supply of properties on the market in King County was drastically decreasing, down 40.7% by the end of February, from a year ago. This is an advantage to sellers right since there aren't as many homes to sell compared to normal trends.
By January 2020, the Seattle housing market had posted the highest growth in the entire region. Before coronavirus hit, the market was really in good shape. Seattle's housing market was hotter than almost anywhere else in the country. The Seattle home price was up by 6% in February 2020, from a year ago. Also, there was an increase of 1.3% as compared to January 2020.
Data from Northwest Multiple Listing Service showed that inventory remained tight in the month of March as well. At the end of March, there were 2813 active listings in King County. That was a 34.01% drop from the year-ago when active listings were 4263. Brokers reported 2,450 closed sales for a YOY gain of more than 6.99%. The pending sales (mutually accepted offers) were 3,031, a year-over-year drop of 17.12%.
A total of 10,291 new listings were added (in all the 23 counties reported by NWMLS) during the month of March. Total no. of active listings at the end of March was 9,418. That was a drop of 21.63% from the same month a year ago. Compared to February, March's inventory increased by 2,505 listings, still felling short of matching demand in the entire region.
Impact of COVID-19 on The Seattle Housing Market
Covid-19 pandemic has slowed down the home sales over the past couple of months. Residential real estate activity reflected expected declines during April with the impact of the coronavirus pandemic taking its toll. The Seattle metropolitan area includes the three most populous counties in the state—King, Snohomish, and Pierce
According to figures of Northwest MLS, in King County, prices rose 4% from a year ago, from $625,000 to $650,000. Snohomish County prices were up nearly 6% and Pierce County joined Kitsap with a double-digit gain; prices there increased from $355,000 to $397,750 for a 12% gain. Pierce County is where most of the metro area’s cheapest homes can be found.
In June, home prices in King County had a small increase of nearly 5.9% (rising from $637,675 to $675,000). Pierce County prices jumped nearly 8.2%, from $372,500 to $403,000. Prices were up nearly 6.7% in Snohomish County and more than 7.7% in Kitsap County.
Below is the latest Seattle Housing Market Report from “Northwest MLS.” It shows that inventory remained tight in the month of June as well. The report compares key housing metrics of the Seattle Housing Market (RES+CONDO) from June 2020 with June 2019.
|1,484 new listings (residential plus condos) were added on the market during the month of June.|
|The total no. of homes for sale (active) specifically equaled 1,440 – End of June.|
|That was a decline of 31.56% from the same month a year ago.|
|Total no. of pending sales were 1,231, an increase of 3.36% from the same month a year ago.|
|Total no. of properties sold in Seattle equaled 901, a year-over-year decrease of 8.34%.|
|Median sales price increased by 2.62% to $749,000.|
|Months of inventory equaled 1.6 which indicates that Seattle is a strong seller’s real estate market.|
Here is the latest housing market report for the entire King County as reported by NWMLS.
|4,107 new listings (residential plus condos) were added on the market during the month of June.|
|The total active listings in King County by the end of June were 3,471.|
|That was a decline of -41.48% as compared to June 2019.|
|Total no. of pending sales were 4,025, an increase of 2.39% as compared to June 2019.|
|Total no. of properties sold in the entire “King County” area equaled 2,783, a year-over-year decrease of -17.10%.|
|Median sales price increased by 5.85% to $675,000.|
|Months of inventory equaled 1.25 which indicates that King County is very hot even during the pandemic.|
Seattle Real Estate Market Forecast 2020 – 2021
What are the Seattle real estate market predictions for 2020? Let us look at the price trends recorded by Zillow over the past few years. For the past 6 to 7 years an extreme drop in inventory led to an astronomical rise in Seattle home prices, as buyers competed over a dwindling number of properties on the market. Since 2015, the median home price in Seattle has appreciated by roughly 55%, from $494,000 to $767,906.
As you can see in the graph given below, the home values increased consistently, starting in late 2012 and continuing through 2018. After that, it marked the beginning of a sustained downturn in prices which lasted for over a year. For the first time since 2014, homes in this area were selling below their listing prices. In the last twelve The Seatle prices
The Zillow Buyer-Seller Index (BSI) shows that Seattle is currently a cool buyer’s real estate market. This is computed monthly. According to their index, there exists a general lack of demand in Seattle, and homes can linger on the market longer and ultimately sell for less, putting negotiating power in the hands of buyers. In other words, based on the last month’s key housing market indicators, current supply is exceeding the demand, giving buyers an advantage over sellers in price negotiations. There are more homes for sale than there are active buyers in the Seattle real estate market.
Seattle home values have gone up 2.2% over the past year and Zillow predicts they will fall within the next year. The latest Seattle real estate market forecast is that the home prices may decrease by 1.7% – in the next twelve months. It may be perhaps due to COVID-10 that has led to a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations. That's how the prices remain flat or drop.
Here is the visual representation of historical Seattle home prices and the latest forecast until March 2021.
Here is a short and crisp Seattle housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Seattle is 85% and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in Seattle is 85% during this period. If this price forecast is correct, the Seattle home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
The change in home prices for Seattle-Bellevue-Everett, WA are shown above for five time periods. Seattle real estate appreciated -0.02% in the Last Quarter. At that rate, the Seattle Real Estate Market was ranked 313th out of 381 metropolitan Real Estate Markets. Seattle was in the 17th percentile. So Seattle, WA performed better in the Last Quarter than 17% of the 381 metropolitan areas covered in LittleBigHomes.com.
|Time Period||Seattle Metropolitan Area Real Estate Appreciation|
|Last 5 Years||69%|
|Last 10 Years||48%|
|Last 20 Years||197%|
|Decline From All-Time High||0.02%|
The question now is what happens moving forward. These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? While many have lost jobs, making them ineligible for a home mortgage, some sellers have taken their homes off the market. The decrease in the number of active listings indicates that new sellers are still not willing to put their homes on the market until the pandemic or its threat is completely over.
At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. While some economic activity will resume as the state gradually reopens, the housing market is expected to remain sluggish for the next couple of months until the economy opens up completely. Sellers, brokers, and homebuyers seem to be adjusting to restrictions imposed on the real estate industry because of the coronavirus pandemic.
The constraint on available inventory and a decline in new listings is making the Seattle real estate market heat up again. Seattle and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Seattle can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. Therefore, in the long term, the Seattle real estate market remains as strong as always. This housing market is skewed to sellers due to persistent imbalance in supply and demand.
We think Seattle would be a balanced real estate market for the remainder of this year. Sales are likely to decline over the coming months as well, especially if the metro areas continue to struggle with a sharp rise in coronavirus cases. In the current cycle, the home prices may remain flat or drop a bit in the coming months to favor buyers.
This means you can probably buy a home for less than list price, and the seller might be willing to pay some or all of your closing costs. It is expected that there will be some increase in the inventory levels due to COVID-19. If buyer demand eases, we could see a positive influence on the low inventory of Seattle while at the same time seeing a negative impact on sales. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.
For buyers in Seattle, the inventory is relatively increasing & mortgage rates are at their lowest. Seattle home prices are predicted to remain flat or fall by 1 to 2 percent during this pandemic. But it’s a positive sign for homebuyers, especially for those to want to invest in Seattle real estate. If they invest now, they could aim for a greater ROI, once the market bounces back in 2021 (hoping the crisis would be over by then).
Also, if listings linger on the market for longer, buyers have a special edge in negotiating sales prices. As a result, buyers who enter the market at this should have more options than usual when it comes to choosing a property. So they should take advantage of scooping up their favorite deals which otherwise are taken away by seasoned investors in the bidding wars.
Nationally, the housing market is heating up with an increase in home buying despite the COVID-19 pandemic. The real estate sector has been one of the most resilient areas of the economy during the severe economic shutdown. The latest housing market trend to be seen is that the lack of supply is leading to a decline in existing home sales even though new home sales have jumped nearly 13% year over year.
Seattle Real Estate Market: Where Can You Find Homes For Sale?
Seattle has a mixture of owner-occupied and renter-occupied housing. According to Neighborhoodscout.com, a real estate data provider, three and four-bedroom large apartment complexes are the most common housing units in Seattle's real estate market. Other types of housing that are prevalent in the market include single-family detached homes, duplexes, rowhouses, and homes converted to apartments.
Single-family homes account for about 40% of housing units in Seattle. At the national level, the 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. With 2020 being, theoretically, in the middle of a boom, there are still 4 years for residential construction to surge. Most likely, a housing shortage will remain in 2020, keeping home prices high.
As we write this, there are 1481 homes for sale in Seattle on Zillow. Additionally, there are 2545 homes for rent. Under potential listings, there are about 2 Foreclosed and 78 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).
- The median list price per square foot in Seattle is $517, which is higher than the Seattle-Tacoma-Bellevue Metro average of $285.
- The median price of homes for sale is $689,900.
- The median price of homes that were sold in March was $705,600.
- The median rent price in Seattle is $2,600, which is higher than the Seattle-Tacoma-Bellevue Metro median of $2,295.
There are currently 2526 homes for sale and 1442 homes for rent in Seattle on Realtor.com, a real estate listings website. These could include open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. As we write this, 258 homes were newly listed on the market. According to their statistics, in May 2020, Seattle was a balanced real estate market, which means there was a healthy balance of buyers and sellers in the market.
The median list price of homes in Seattle, WA was $730K, trending up 4.3% year-over-year. The median listing price per square foot was $490. The median sale price was $723K. Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in Seattle have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 100% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher.
Seattle Housing Market: Foreclosure Statistics 2020
Here are some foreclosure statistics of the Seattle real estate market. As per the foreclosure data by Zillow, 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%. The percent of Seattle homeowners underwater on their mortgage is 3.9%, which is lower than Seattle-Tacoma-Bellevue Metro at 4.2%.
There are currently 103 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 266. In May, the number of properties that received a foreclosure filing in Seattle, WA was 17% lower than the previous month and 75% lower than the same time last year.
|Potential Foreclosures in Seattle||103 (RealtyTrac)|
|Homes for Sale in Seattle||266|
|Median List Price||$688000 (6% rise vs Apr 2019)|
According to RealtyTrac, in Seattle, the zip code with the highest foreclosure rate is 98136, where 1 in every 7790 housing units is foreclosed. So, you’d find a lot of distressed sellers in this area and get some discounted off-market deals. 98146 zip code has the lowest foreclosure rate, where 1 in every 10759 housing units becomes delinquent.
Seattle Real Estate Market: Is It A Good Place For Investment?
Should you consider Seattle real estate investment? Now that you know where Seattle 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. Many real estate investors have asked themselves if buying a property in Seattle is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
Although this article alone is not a comprehensive source to make a final investment decision for Seattle, we have collected ten evidence-based positive things for those who are keen to invest in the Seattle real estate in 2020. As housing inventory in Seattle remains tight, it would make things very challenging for buyers in 2020.
Let’s take a look at some other factors that could make 2020 a good year to invest or buy a home in the Seattle real estate market.
Seattle Housing Demand is Strong
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. 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. 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.
Seattle Real Estate Investment Generates Excellent ROI In The Long Term
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 for the long term. 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 Has Friendly 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.
Seattle's Tech Landscape Is Rapidly Evolving
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. Seattle's tech landscape and real estate market are rapidly evolving.
Google has 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 Rental Market Is Very Strong
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. 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.
According to RentCafe, the average rent for an apartment in Seattle is $2,169, a 6% increase compared to the previous year. About 15% of the apartments can be rented for less than $1500, and more than 50% of the apartments can be rented for more than $2,000 per month. This shows that rent prices are very high in Seattle.
176,400 or 54% of the households in Seattle are renter-occupied while 147,046 or 45% are owner-occupied. The most affordable neighborhoods in Seattle are Innis Arden, where the average rent goes for $1,354/month, Richmond Beach, where renters pay $1,354/mo on average, and The Highlands, where the average rent goes for $1,354/mo. The most popular neighborhood in Seattle is Belltown, with an average rent of $2,714. Next up is Broadway, where apartments go for $2,031/month, followed by South Lake Union with $2,500.
Seattle's Large Student Market Is Great For Rental Property Investment
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 an 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 means you can rent the property out to locals if the students move out.
Seattle Is Friendly To Foreign Real Estate Buyers
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 overvalued 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.
The Seattle Housing Market Is Landlord Friendly
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.
Seattle Investment Properties: Real Estate Investment
Are you looking for an investment property in the Seattle real estate market? 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. 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. Good cash flow from Seattle investment property 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 the best investment property in Seattle in a growing neighborhood would be key to your success.
The three most important factors when buying a real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. You should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Seattle rental property and you should be able to get a good return on your investment over the long term.
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, schools, and shopping malls. A cheaper neighborhood in Seattle might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods. The inventory is low, but opportunities are there.
There are 75 neighborhoods in Seattle. Magnolia has a median listing price of $1.1M, making it the most expensive neighborhood. Haller Lake is the most affordable neighborhood, with a median listing price of $550K. Another popular neighborhood of Seattle for real estate investment is Queen Anne where the median home price is around $875,000. Broadway is a popular neighborhood for homebuyers who can afford to buy a home in the median price range of $649,000. The average rent for a studio apartment in Seattle, WA is $1,452. The average rent for a 1 bedroom apartment is $1,981 and the average rent for a 2 bedroom apartment is $2,054.
Here are some of the best neighborhoods in the Seattle metro area where you can buy a house or an investment property.
North Redmond is in King County and is one of the best places to live in Washington. According to Niche.com, living in North Redmond offers residents a sparse urban feel and most residents own their homes. In North Redmond, there are a lot of restaurants, coffee shops, and parks. Many families live in North Redmond and residents tend to lean liberal. The public schools in North Redmond are highly rated. The median home value in North Redmond is $866,702 and the median rent is $2,318.
North Delridge is quite an affordable neighborhood in Seattle. It lies in King County and is one of the best places to live in Washington. According to Niche.com, living in North Delridge offers residents an urban-suburban mix feel. The area is known for its lush natural beauty and abundant opportunities for outdoor recreation. The public schools in North Delridge are highly rated. The median home value in North Delridge is $603,188. North Delridge home values have gone up 3.2% over the past year and Zillow predicts they will fall -1.7% within the next year. Therefore, it is probably the right time to start finding some good investment opportunities. About 48% of the residents like to rent a home.
Capitol Hill is a neighborhood in Washington, D.C., District of Columbia. Living in Capitol Hill offers residents an urban feel and most residents own their homes. The good thing from an investment perspective is that about 50% of the population rents in the Capitol Hill neighborhood. According to Redfin.com, the Capitol Hill housing market is very competitive. The average sale price of a home in Capitol Hill was $607K last month, down 2.0% since last year.
The average sale price per square foot in Capitol Hill is $646, up 0.39% since last year. On Apartmenthomeliving.com, the pricing for Studio Apartments in Capitol Hill currently ranges from $700 to $10,000 with an average price of $1,840. As we write this, the rental pricing for One Bedroom Apartments in Capitol Hill ranges from $655 to $9,585 with an average monthly rent of $2,488. The current average rental price for two bedrooms is $3,264.
Highland Park is a neighborhood in King County. Living in Highland Park offers residents an urban-suburban mix feel and most residents rent their homes. The public schools in Highland Park are above average. The median home value in Highland Park is $550,022. Highland Park home values have gone up 3.5% over the past year.
According to RentCafe, the average rent in Highland Park, Seattle, WA is $1,842. About 50% of the apartments can found in the range of $1,501 – $2,000. The price range for a studio apartment in Highland Park, Seattle, WA is between $1,379 and $1,429. The price range for a 2-bedroom apartment in Highland Park, Seattle, WA is between $1,899 and $1,939.
South Hollywood Hill is in King County and is one of the best places to live in Washington. According to Niche.com, living in South Hollywood Hill offers residents a sparse urban feel and most residents own their homes. In South Hollywood Hill there are a lot of restaurants, coffee shops, and parks. The public schools in South Hollywood Hill are highly rated. The median home value in South Hollywood Hill is $817,547 and the median rent is $2,129.
Sammamish Plateau also lies in King County. It is an upscale, picturesque suburb situated between Lake Sammamish and the Snoqualmie Valley. Living here offers residents a sparse suburban feel. The median home value in South Hollywood Hill is $742,997. According to Apartments.com, as of July 2020, the average apartment rent in Sammamish, WA is $1,407 for a studio, $1,690 for one-bedroom, $1,853 for two bedrooms, and $2,265 for three bedrooms. Sammamish Plateau is consistently ranked among the best places to live in the state and the country. The public schools in Sammamish Plateau are highly rated.
Some of the other popular neighborhoods in Seattle where you can invest in Seattle investment properties are Maple Leaf, Central District, Phinney Ridge, Ballard, Columbia City, Belltown, Beacon Hill, Green Lake, West Seattle, Wallingford, Madison Park, Queen Anne, Magnolia, and Northgate.
Here is a snapshot that shows the median home values in some of the popular neighborhoods of Seattle.
If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Seattle.
Consult with one of the investment counselors who can help build you a custom portfolio of Seattle turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Seattle.
Not just limited to Seattle or Washington but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Seattle turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
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 areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
Is It The Right Time To Invest In Real Estate? – The national homeownership rate is on the decline for the first time since 2017. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. In 2018, Millennials made up about 22 percent of the population in the United States. They’re choosing to rent over buying a single-family home or an apartment. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. Moreover, it's even harder to take out a mortgage for those who have student loan debt.
Seattle | WA Real Estate Investment Opportunities
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.
The next one is the Tacoma real estate market. It is the second-largest city in a state that is often a better choice for investors than the largest city since demand is strong but not so great that investors worry about being priced out of the market or being caught up in a bubble. Tacoma is actually the third-largest city in Washington state. Rents and property values in the Tacoma area are rising due to increased demand and constrained supply. This is an ideal time to buy. Roughly speaking, the median house in the Tacoma area is now the same price as the typical house in King County was in 2012. Furthermore, there are many reasons to consider investing in Tacoma real estate over homes and condominiums in nearby housing markets.
Then comes the Walla housing market which includes two suburbs, encompassing more than fifty thousand people. The area has become the hub of Washington State’s wine country, though wheat remains a major contributor to the local agricultural economy. Walla Walla is one of the real estate markets in the state that doesn’t depend on Seattle’s growth for appreciation. Walla Walla sits on the Washington-Oregon state line. The Walla Walla housing market is poised for steady price growth. The median home value in Walla Walla is $278,247 and home values have gone up 4.4% over the past year.
Let us know which real estate markets in the United States you consider best for real estate investing!
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.
Market Prices, Trends & Forecasts
Why Invest In Seattle
Neighborhoods info & rent prices