The Seattle housing market showed a lot of resilience, especially in the context of the slowdown experienced in April and May. 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 real estate market in 2020, especially with homes in the lower tier. That trend continued to follow even during the Covid-19 pandemic. July 2020 was the ninth straight month Seattle-area home prices have topped national averages (S&P CoreLogic).
According to the Realtor.com's Housing Market Recovery Index, the US housing market is sitting at a 110.6 of 100, while the Seattle-Bellevue-Tacoma metro area is sitting at 121.3 of 100, for the week ending September 26. The higher the index value, the higher the level of recovery. The Seattle metro area is down 9.4 points from the previous week.
In August, tight inventory and high demand pushed home prices to new highs. The region saw the second consecutive month of record-setting price growth with home prices experiencing double-digit increases as compared to a year ago. The median sales price in Seattle surged by 10.61% to reach $766,000 (source: NWLS). The Kind County also recorded a steep price rise of 10.57% year-over-year, and it is currently holding at $680,000. We also saw the lowest number of homes for sale in more than 20 years and the lowest mortgage rates on record.
Homebuyers are trying to take advantage of lower interest rates, and the local real estate agents are struggling to meet the demand. August was a great month for the Seattle housing market. The latest trends point towards stronger sales and a rise in prices for the next three months. According to local realtors, as buyers seek to cash in on record-low interest rates the market is predicted to remain this way until at least April of next year.
With pending sales outpacing new listings, inventory continues to shrink. 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. Despite an increase of 7.69% in active listings, the inventory equals 1.78 months of supply. The entire King County is a hot seller's real estate market with only 1.16 months of inventory — still well below what is required to meet the volume of buyers right now.
The selling season will likely run well into the fall and there will continue to be pent-up demand. With the virus and increased flexible work-from-home options, people are able to move to suburbs and outer areas in search of value and lower population density. Therefore, buyers are also starting to find homes in the suburbs. Seattle-based Zillow Group predicts a ‘suburban boom' in the US housing market as remote work becomes more common.
Inventory stays tight in the Seattle metro area as well (King, Snohomish, and Pierce counties), even with an increase in listings. The most affordable homes continue to be the hottest commodities on the market, which are concentrated in Pierce and Snohomish counties. August 2020's market data by Realtor.com also shows that Seattle-area is a seller’s real estate market. It means there are roughly more buyers than there are active homes for sale.
Months Supply of Inventory is very tight. It is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically 6.5 months is considered a balanced housing market but Seattle has only 1.53. Ideally, a buyer would prefer a sale to list price ratio that’s closer to 90%. The sellers in Seattle have managed to hold good leverage in these negotiations in the past month. They could s sell homes for 100% of the asking price.
A seller would always prefer scenarios that can yield a ratio of 100% or higher. The median list price of homes in Seattle, WA was $735K, trending up 7.3% year-over-year. The median listing price per square foot was $506. The median sale price was $770K. On average, homes in Seattle, WA sell after 40 days on the market. The trend for median days on market in Seattle, WA has gone up since last month, and slightly down since last year.
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. There remains an underlying factor of uncertainty about the long-term impacts of the pandemic. Let’s take a close look at the Seattle real estate market trends since the outbreak of COVID-19, and also find out the forecast for 2021.
Seattle Housing Market Prices And Trends 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 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.
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. The 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 slowed down the volume of sales and the pace of sales in the Seattle area. It caused some fraction of buyers to put off their planned home purchases and a portion of sellers to hold off on listing their homes. Residential real estate activity reflected expected declines during April with the impact of the coronavirus pandemic taking its toll. Due to falling inventory, the sellers were facing a lot less competition from each other. Many of them decided not to list their homes in the spring season, which led to a heavy decline in listings but kept the prices steady and strong.
According to figures of Northwest MLS for May, 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. The median sales price in Seattle increased by 2.62% to $749,000, and months of inventory equaled 1.6.
The Seattle metropolitan area includes the three most populous counties in the state—King, Snohomish, and Pierce. In July, King County continues to have the highest median price for homes and condos at $670,000 (up 7.2% from a year ago). Prices surged across most King County markets, with the typical Seattle single-family home selling for $805,000 as prices rose 6.6% from a year ago.
Price growth was even stronger elsewhere—21.6% in North Seattle, 11.46% in SE King, and 7.95% in SW King. Homes in Pierce County saw a 13% price hike, to a record-busting $425,000. And in Snohomish County, prices rose a whopping 15% year-over-year, to reach an all-time high of $575,000.
Below is the most recent Seattle Housing Market Report released by “Northwest MLS.” The report compares key housing metrics of the Seattle Housing Market (RES+CONDO) from August 2020 with August 2019. The number of listings in August created a better environment for buyers, which led to a record number of homes going under contract. With this trend, it is anticipated that buyers will find the greatest selection of new properties coming on the market in the coming months.
| 1,817 new listings (residential plus condos) were added on the market during the month of August. |
| The total no. of homes for sale (active) specifically equaled 1,974. |
| That was an increase of 7.69% from the same month a year ago. |
| Pending sales were 1,358, up 38.43% from the same month a year ago. |
| Closed sales were 1,109, a year-over-year increase of 14.57%. |
| The median sales price increased by 10.61% to $766,000. |
| Months of inventory left = 1.53, which indicates that Seattle is a strong seller’s real estate market. |
King County Housing Market Report (August 2020)
As reported by NWMLS, in August, King County had 3,456 closed sales, a 9.64% increase over the same time last year, and a slight 1.05% increase over the previous month. Median home prices for closed sales in August also rose by 10.57% compared to the same time last year.
| 4,628 new listings (residential plus condos) were added on the market during the month of August. |
| The total active listings in King County by the end of August were 4,010. |
| That was a decline of –26.72% as compared to August 2019. |
| Pending sales were 4,420, an increase of 34.02% as compared to the previous year. |
| Closed sales in the entire “King County” area equaled 3,456, a year-over-year increase of 9.64%. |
| The median sales price increased by 10.57% to $615,000. |
| Months of inventory equaled 1.16, which indicates that the King County housing market 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 increased from $494,000 to $780,126 — that's roughly an appreciation of 58% for a period of five years.
In the last 10 years, Seattle has experienced some of the highest home appreciation rates of any community in the nation. Seattle real estate appreciated 84.92% over the last ten years, which is an average annual home appreciation rate of 6.34%, putting Seattle in the top 10% nationally for real estate appreciation, according to Neighborhoodscout.com.
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. In 2018, prices took a steep drop. For the first time since 2014, homes in this area were selling below their listing prices. Prices are up across the board. Condos are still below their peak price, but this is the highest the condo price has been since the peak of 2018. Houses have surpassed the peak.
Seattle home values have gone up by +7.4% over the past year and Zillow predicts they will rise in 2021 as well. The recent Seattle real estate market forecast is that the home prices may rise by 5.6% – in the next twelve months. It means that there is a situation in which demand exceeds supply. giving sellers an advantage over buyers in price negotiations. That's how the housing prices increase in a region.
Here is the visual representation of historical Seattle & King County home prices (single-family plus condo) and their forecasts until August 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 historical change in home prices for Seattle-Bellevue-Everett, WA is shown below for the three-time period. The Home Price Index indicates that the Seattle The market is up 48% over the last 10 years (data up to 3rd Quarter, 2018). Over the last thirty years, it is up 497%. The highest annual change in the value of houses in the Seattle Real Estate market was 33% in the twelve months ended with the 2nd Quarter of 1978.
The worst annual change in home values in the Seattle Market was -11% in the twelve months ended with the 3rd Quarter of 2009. The highest growth in home values in the Seattle Real Estate Market over a three year period was 96% in the three years ended with the 4th Quarter of 1978. The worst performance over a three year period in the Seattle Market was -24% in the three years ended with the 2nd Quarter of 2011. For the upcoming updates, you can visit 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 increase in the number of new and total listings indicates that sellers are now willing to put their homes on the market.
People continue to buy and sell their homes, whether they're growing their family and need a bigger place, relocating for a job, or retiring. And the real estate industry has quickly adapted to restrictions due to the novel coronavirus pandemic 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.
Opportunities abound for both buyers and sellers if they’re willing to act quickly. Sellers, brokers, and homebuyers seem to be adjusting to restrictions imposed on the real estate industry because of the coronavirus pandemic. With the help of agents, buyers are touring properties virtually, on FaceTime, or WhatsApp calls.
The constraint on available inventory 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. The pandemic caused some sellers to take a pause which resulted in the Seattle housing market facing even more of a decline in inventory.
At the same time, buyer demand remained as before. The current Inventory (months of supply) in this region remains very tight — 1.78 months in Seattle and 1.16 in the entire King County region. 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 have recovered and are unlikely to decline over the coming months. If there is a second outbreak of the pandemic, and if the 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 sellers, currently, the Seattle housing market is seeing very low inventory, meaning sellers can expect less competition from other sellers and multiple offers from buyers.
For buyers in Seattle, the inventory is relatively increasing & low-interest rates (2.88%) continue to be an incentive. We've seen a high number of listings hit the market in the last couple of months. It’s a positive sign for homebuyers, especially for those to want to invest in Seattle real estate. More inventory leads to more options for buyers and it could potentially lead to more sales as well. 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.
Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Seattle in 2020 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance.
Seattle Real Estate 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 44 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 343. In August, the number of properties that received a foreclosure filing in Seattle, WA was 0% higher than the previous month and 88% lower than the same time last year.
As of now (according to RealtyTrac), in Seattle, the zip code with the highest foreclosure rate is 98146, where 1 in every 5380 housing units is foreclosed. 98122 zip code has the lowest foreclosure rate, where 1 in every 19252 housing units becomes delinquent.
| Potential Foreclosures in Seattle | 44 (RealtyTrac) |
| Homes for Sale in Seattle | 343 |
| Recently Sold | 7938 |
| Median List Price | $650,000 (2% drop vs July 2019) |
Seattle Real Estate Investment: Should You Buy Investment Properties?
Should you consider Seattle real estate investment? Well, to answer that question we should take a look at its economy and jobs. 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. The Seattle real estate market always looks nearly as expensive as an overheated market. 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.
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. As housing inventory in Seattle remains tight, it would make things very challenging for buyers.
| Top Reasons To Invest In The Seattle Real Estate Market | |
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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 housing market has been one of the hottest in the country for years. In the past ten years, the annual real estate appreciation rate has amounted to 6.34%. This puts Seattle in the top 10% nationally for real estate appreciation. 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. 54% of the households in Seattle are renter-occupied while 45% are owner-occupied. 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.
These are some of the most affordable neighborhoods where the rent prices are below the Seattle average rent:
- Innis Arden, where the average rent goes for $1,354/month.
- Richmond Beach, where renters pay $1,354/mo on average.
- The Highlands, where the average rent goes for $1,354/mo.
- Broadway, where apartments go for $2,031/month.
As of August 2020, the average rent for an apartment in Seattle, WA is $2100 which is a 1.71% decrease from last year when the average rent was $2136 , and a 1.05% decrease from last month when the average rent was $2122.
- One-bedroom apartments in Seattle rent for $1973 a month on average (a 0.56% increase from last year).
- Two-bedroom apartment rents average $2797 (a 0.82% increase from last year).
- The average apartment rent over the prior 6 months in Seattle has increased by $18 (0.9%)
- One-bedroom units have increased by $21 (1.1%).
- Two-bedroom apartments have increased by $244 (9.6%).
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.
Where To Buy Seattle Investment Properties?
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. 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. Leschi has a median listing price of $1M (On Realtor.com), making it the most expensive neighborhood. Belltown 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 densely populated residential district in Seattle (Not be confused by Capitol Hill, Washington D.C.). It is located east of the city's Downtown on the other side of Interstate 5. Capitol Hill is the 9th most walkable neighborhood in Seattle with a Walk Score of 91 and is bikeable. It is one of the city's most popular nightlife and entertainment districts. Made up of a few smaller neighborhoods, rents in Capitol Hill average around $1,900 a month. The community is made up of young professionals, singles, and families with kids.
According to Redfin.com, the Capitol Hill housing market is very competitive. As we write this, the median sale price of a home in Capitol Hill is $679,950, up 22.0% year-over-year. Homes in Capitol Hill receive 1 offer on average and sell in around 8 days. The average sale price of a home in Capitol Hill was $680K last month, up 22.0% since last year. The average sale price per square foot in Capitol Hill is $618, up 0.24% 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. The market in the Seattle suburb of Sammamish is currently very hot. 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.
Here are the ten neighborhoods in Seattle having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
- Antioch U-Seattle / 4th Ave
- Mars Hill Graduate School / Elliott Ave
- James St / Boren Ave
- Cornish College of the Arts / Stewart St
- 12Th Ave S / S King St
- Boren Ave / Madison St
- Seattle Community College-Central Campus / Broadway
- E Jefferson St / 20th Ave
- U of Washington-Seattle Campus / NE 45th St
- North Park
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.
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.
REFERENCES:
Market Prices, Trends & Forecasts
https://www.nwmls.com/
https://www.nwmls.com/News–Information/page/Latest-Press-Release
https://www.zillow.com/seattle-wa/home-values
https://www.littlebighomes.com/real-estate-seattle.html
https://www.realtor.com/realestateandhomes-search/Seattle_WA/overview
https://www.rentcafe.com/average-rent-market-trends/us/wa/seattle
https://www.neighborhoodscout.com/wa/seattle/real-estate
https://seattlerealestatenews.com/category/info/seattle-monthly-housing-news https://www.seattlepi.com/coronavirus/article/best-time-to-buy-or-sell-a-house-during-pandemic-15287608.php
Foreclosure Statistics
https://www.realtytrac.com/statsandtrends/wa/king-county/seattle
Rental Market (Apartments) Statistics
https://www.rentjungle.com/average-rent-in-seattle-rent-trends/
https://www.rentcafe.com/average-rent-market-trends/us/wa/seattle/
Why Invest In Seattle
https://www.collegesimply.com/colleges/washington/seattle/four-year-colleges
https://www.naahq.org/read/industry-insider/6-28-16/america-becoming-renters-nation
http://www.homebuyinginstitute.com/news/will-seattle-start-rising-again
https://www.geekwire.com/2018/amazon-responsible-seattles-housing-cooldown-real-estate-experts-weigh
https://www.cnbc.com/2018/08/02/seattle-housing-market-is-under-pressure-as-chinese-buying-dries-up.html
https://seattlebubble.com/blog/2019/03/27/case-shiller-seattle-home-price-gains-below-average-in-january
https://www.bizjournals.com/losangeles/news/2016/08/12/california-regulatory-policies-businesses-flee.html
https://www.linkedin.com/pulse/seattle-san-francisco-why-west-coast-tech-companies-both-shanahan
https://www.theurbanist.org/2014/09/02/85-foot-and-125-foot-height-limits-are-a-missed-opportunity
https://www.seattletimes.com/seattle-news/politics/seattle-approves-taller-buildings-in-uptown-doubling-heights-in-some-areas
https://www.seattlemag.com/news-and-features/seattle-housing-experiences-high-demands-tech-companies-continue-grow
https://www.thestranger.com/slog/2018/01/09/25692670/seattle-is-now-number-three-us-city-for-foreign-real-estate-investors
https://www.thestranger.com/news/feature/2016/01/27/23480634/what-you-need-to-know-about-your-rights-as-a-renter-in-seattle
Neighborhoods info & rent prices
https://www.apartments.com/
https://www.apartmenthomeliving.com/seattle/
https://www.niche.com/places-to-live/search/best-neighborhoods-to-buy-a-house/m/seattle-metro-area/
