Seattle Real Estate Market Trends And Forecast 2019
Seattle Real Estate Market Predictions 2019
Seattle is an expensive real estate market that gives many investors pause. However, there are many reasons to invest in the Seattle real estate market in 2019 and the upcoming years. We’ll share 10 of them here after discussing the fundamentals of the Seattle housing market. Seattle is home to over 700,000 people. This makes the Seattle real estate market the largest in both the state of Washington and the Pacific Northwest. However, the Seattle housing market is actually bigger than that – it extends to the nearly four million people in the Seattle metropolitan area.
Seattle’s tech landscape and real estate market are rapidly evolving. Google just upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond. GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach. Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years we have seen 50% price growth in this market which has priced out many middle class buyers.
Seattle Real Estate Market Forecast 2019
What are the Seattle real estate market predictions for 2019? According to Zillow.com, the median home value in Seattle is $739,600. Seattle home values have gone up 4.5% over the past year and Zillow predicts they will rise 1.1% within the next year. The median list price per square foot in Seattle is $512, which is higher than the Seattle-Tacoma-Bellevue Metro average of $281. The median price of homes currently listed in Seattle is $699,950 while the median price of homes that sold is $693,900. The median rent price in Seattle is $2,600, which is higher than the Seattle-Tacoma-Bellevue Metro median of $2,300.
Seattle Real Estate Market Trend 2018
What is the trend of the Seattle real estate market in 2018? Seattle has been one of the hottest real estate markets in the country for years. But for the first time since 2014, homes in that area are selling below their listing price. And that slow down could be noteworthy for homeowners across the country. According to a recent report published on Fortune.com, just six months ago, the average Seattle home sold for 6.3% above its listing price. These days, it’s averaging 6.6% below that price. And that comes as listing prices themselves are falling, dropping 7% since the spring. Therefore, it is possible that the Seattle real estate market cool down is just a sign that buyers reached their limit after years of frenzied sales.
Despite the flood of new inventory hitting the market in recent months, the Seattle housing market still remains under-supplied. As the market cools, housing affordability in Seattle area is likely to increase. Even as price increases stagnate, the median home sale price remains unaffordable to most buyers. As per Trulia.com, trends in the Seattle real estate market trends show an increase of $28,000 (4%) year-over-year rise in median sales price and a -2% drop in median rent per month. Trulia has 3,356 resale and new homes in Seattle lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. Average price per square foot for Seattle was $514, an increase of 8% compared to the same period last year. The median rent per month for apartments in Seattle for Sep 22 to Oct 22 was $2,700. The median sales price for homes in Seattle for Jul 18 to Oct 17 was $685,000 based on 2,075 home sales.
Seattle Real Estate Market Summary
As per Neighborhoodscout.com, large apartment complexes or high rise apartments are the single most common housing type in Seattle, accounting for 44.63% of the city’s housing units. Other types of housing that are prevalent in Seattle include single-family detached homes ( 43.21%), duplexes, homes converted to apartments or other small apartment buildings ( 6.92%), and a few row houses and other attached homes ( 4.83%). People in Seattle primarily live in small (one, two or no bedroom) units, chiefly found in large apartment complexes or high rise apartments. Seattle has a mixture of owner-occupied and renter-occupied housing.
- Median Sales Price: $685,000 (On Trulia)
- Price Per Sqft: $514
- Homes For Sale on Trulia: 3,356
- Median Rent Per Month: $2,700
- Median Household Income: $67,054
- Home Owners: 55%
- Single Residents: 50%
- Median Age: 38
- College Educated: 64%
As per Movoto.com, the median list price in Seattle is $698,800. The median list price in Seattle was less than 1% change from October to November. Seattle’s home resale inventories is 2,039, which decreased 1 percent since October 2018. The median list price per square foot in Seattle is $486. October 2018 was $487. Distressed properties such as foreclosures and short sales in Seattle, WA remained the same as a percentage of the total market in November.
Seattle Home Prices And Appreciation Rates
According to the stats from Neigborhoodscout.com, Seattle real estate appreciated 52.33% over the last ten years, which is an average annual home appreciation rate of 4.30%, putting Seattle in the top 10% nationally for real estate appreciation. If you are a home buyer or real estate investor, Seattle definitely has a track record of being one of the best long term real estate investments in America through the last ten years.
Appreciation rates are so strong in Seattle that despite a nationwide downturn in the housing market, Seattle real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Seattle appreciation rates continue to be some of the highest in America, at 11.31%, which is higher than appreciation rates in 97.55% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Seattle. Seattle appreciation rates in the latest quarter were at 3.10%, which equates to an annual appreciation rate of 12.99%. Importantly, this makes Seattle one of the highest appreciating communities in the nation for the latest quarter, and may signal the city’s near-future real estate investment strength. Relative to Washington, Neigborhoodscout.com’s data shows that Seattle’s latest annual appreciation rate is higher than 80% of the other cities and towns in Washington.
10 Highest Appreciating Seattle Neighborhoods Since 2000: By Neigborhoodscout.com
- Boren Ave / Madison St
- 12Th Ave S / S King St
- Mars Hill Graduate School / Elliott Ave
- Cornish College of the Arts / Stewart St
- James St / Boren Ave
- Antioch U-Seattle / 4th Ave
- Seattle Community College-Central Campus / Broadway
- U of Washington-Seattle Campus / NE 45th St
- Queen Anne Ave N / Boston St
- Sunset Hill
Seattle WA Foreclosures Trend And Summary
Looking for foreclosure homes in Seattle, WA? Foreclosures will be a factor impacting home values in the next several years. In Seattle 0.1 homes are foreclosed (per 10,000). This is lower than the Seattle-Tacoma-Bellevue Metro value of 0.6. The percent of delinquent mortgages in Seattle is 0.2%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Seattle homeowners underwater on their mortgage is 3.9%, which is lower than Seattle-Tacoma-Bellevue Metro at 4.2%.
On RealtyTrac.com, there are currently 368 properties in Seattle, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale in Seattle, WA on RealtyTrac is 663. In September, the number of properties that received a foreclosure filing in Seattle, WA was 13% lower than the previous month and 35% lower than the same time last year. Home sales in Seattle, WA for August 2018 were down 98% compared with the previous month, and down 91% compared with a year ago. The median sales price of a non-distressed home was $667,250. The median sales price of a foreclosure home in Seattle was $0, or 0% higher than non-distressed home sales.
- Seattle WA Foreclosures = 368
- Homes for Sale in Seattle WA = 663
- Recently Sold in Seattle WA = 6,243
Top 10 Reasons To Invest In The Seattle Real Estate Market In 2019
Many real estate experts say that the Seattle’s housing market has risen to record levels fueled in part by Amazon’s historic success, but the tech giant’s hiring has slowed in recent months. At the same time, the Seattle housing market has cooled, losing its title as the nation’s hottest real estate market. Let’s move on to our top 10 reasons to invest in the Seattle real estate market in 2019.
1. Silicon Valley Real Estate Is Insane
What does the state of Silicon Valley real estate have to do with the Seattle real estate market? Quite a bit, actually. Seattle has long been a second tier technology hub, bolstered by companies like Boeing, Amazon, F5, and Real Networks. Seattle’s strong tech ecosystem has led to a number of startups choosing to start here, but more importantly, many tech giants are setting up “outposts” here. They’re moving jobs to Seattle so they can afford to expand or simply afford to remain in business. The influx of new high paying jobs plus relocating employees to Seattle is driving demand for homes in Seattle.
Over the past 10 years, Amazon has grown more than tenfold in the city of Seattle, from about 4,000 employees in its hometown to over 45,000. During the same time, the median home price in the city has shot up from $420,000 to $720,000 (according to the Northwest MLS) and home prices in the metro area as a whole have gone up 47 percent. That’s nearly twice as high as the national increase of 24 percent according to the S&P Case-Shiller Home Price Index. Between 2008 and 2018, over 535,000 homes have sold in the entire Seattle metro area. For comparison, that’s 41 percent more than in the similarly-sized San Diego metro area. Much of this growth in the local housing market can likely be attributed to growth at Amazon.
2. California’s Oppressive Business Climate
Businesses aren’t just relocated to Seattle to tap into a growing, skilled labor market. Others are simply relocating because they cannot stay in business in California. California has the highest income taxes in the United States. Incredibly intrusive and endlessly proliferating regulation only makes it harder for businesses to operate. While many businesses are moving to Texas, Seattle is closer both in culture and geography. That they can find cheaper talent and real estate while gaining more freedom to operate their businesses only adds to the bottom line.
3. The Overall Growth in the Area
Seattle was the fastest growing major city in the country in 2015. It has ranked among the top 5 fastest growing cities since 2010, hitting a 3.1% annual growth in 2016. Many young people move here because it is seen as an excellent place to live and get started, and that’s aside from the strong job market. The exodus from California to Seattle is only part of the equation, since Seattle attracts people from all over the country, and in truth, around the world.
4. How Geography Aids Property Values in Seattle
The Seattle real estate market shares many of the constraints that drove up real estate prices in San Francisco. You can’t realistically build on water. It is hard to build in the mountains. You can build up, but that takes time and is expensive. And all the while, everyone wants to live close to the city center and jobs. This helps keep property values in the Seattle housing market high.
5. How Domestic Politics Bolsters the Seattle Real Estate Market
Environmentalist protections for large swaths of land around Seattle limit how far the city could spread out. This prevents the value of homes in the Seattle housing market from coming down as people relocate to distant suburbs, trading home values for commute time. Building up is increasingly an option, but you can’t do that here the way they’ve done it in Miami. The financial district allows buildings to be as tall as FAA regulations allow, but that’s pretty much it. Nor does that designation matter much, since the area is mostly built-up. The rest of Seattle is zoned low, preventing demand from being met by building condo towers. That keeps Seattle rental property rates high.
6. How Foreign Politics Affects the Seattle Real Estate Market
The United States is pretty friendly to foreign real estate buyers. Canada has limited the ability of foreign buyers to buy up properties in Canada, a major reason why Vancouver became one of the most over-valued real estate markets in the world. This has led many Chinese investors to buy up Seattle real estate instead, making the city the third destination for foreign real estate investors. Some hope to send kids to study in the U.S., while a few actually have children here. Others buy the properties as a way to park money overseas in a relatively low tax jurisdiction with likely returns if they choose to sell later. Since foreign buyers don’t always rent the properties out, this drives up prices in the Seattle real estate market while indirectly constricting supply.
7. The Market Is Unexpectedly Friendly for Landlords
Many investors are reluctant to buy properties in liberal markets because they’re afraid they won’t be able to protect their investment. However, there are a number of points in favor of Seattle, especially in comparison to Oregon and California. Washington State outlawed rent control, so you can raise rents to keep up with inflation and demand. If a tenant breaks the lease without the landlord’s consent, the tenant is liable for rent through the end of the lease. Landlords have significant freedom in their screening questions. If a tenant has a month to month lease, the landlord can only end it for one of 18 approved reasons, but they can end it with a written notice three weeks before the end of the month.
8. The Massive Rental Market
Around a third of people in the U.S. rent. However, in Seattle, the rate is over half. This is partially due to the cost of homes in the Seattle housing market. Another contributing factor is that Millennials are less willing to be tied down to a home and thus prefer to rent, while Seattle is one of the top cities for attracting these young adults. They’re probably going to continue to rent instead of buying homes.
9. The Large Student Market
While we cannot say this just about the Seattle housing market, the fact remains that large cities with a strong network of educational institutions always create opportunity for those who want to own rental properties. Students don’t buy houses – they rent. A college town with a single university sees property values rise and fall relative to the popularity of the university. Seattle’s nearly two dozen four year colleges provide a literally diverse market for landlords catering to students, while the strong local job market mean you can rent the property out to locals if the students move out.
10. The Excellent Return on Investment
Seattle has repeatedly hit lists as being among the top cities for real estate sellers to get the highest return on their investment. Property values have gone up consistently for years. Rental rates are high and continue to rise, guaranteeing ROI for those who buy and hold properties. We’ve already addressed the fact that you can raise rents as necessary to match the market. This means you will certainly be able to profit from the large rental market in Seattle whether you buy and hold or buy and flip.
Investing In The Seattle Housing Market: The Conclusion
If you are a beginner in the business of real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the hottest real estate markets. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. Now coming to Seattle, it 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.
Another hot market for investors in 2019 is going to be the famous Miami real estate market. The Miami real estate market offers diverse opportunities to real estate investors, allowing you to choose which rental markets you want to cater to and profit from. However, that isn’t reason enough to consider investing in the Miami real estate market. According to a report published by Zillow in Dec 2017, Miami was the country’s fourth most valuable housing market. Trailing only Los Angeles (total value of $2.7 trillion), New York (2.6 trillion), and Washington (996.7 trillion), the total value of Miami’s housing market is an estimated 864.2 billion, which represents a solid 4.7 percent increase year over year. Miami real estate market predictions show us that the prices will rise 3.6% within the next year.
Similarly, the Charlotte housing market forecast 2019 is that it is going to be a hot investment destination for new real estate investors. Charlotte is the largest city in North Carolina. The city proper is home to more than 800,000 people. The metropolitan area is even larger – home to roughly two and a half million people. It is one of the country’s fastest growing metro areas, and it was the second fastest growing city in the southeastern United States. Only Jacksonville, Florida was growing faster between 2004 and 2014. One advantage to living in a big city like Charlotte is the constant demand for homes. Buying a home in Charlotte is a better investment, depending upon several factors. There are so many major companies and professional sporting events that people will always be interested in residing here. Therefore, interested investors aren’t likely to allow the listing prices to get to low before they swoop in and take advantage.
Foreign property buyers
Silicon Valley is insane
California’s oppressive business climate
Politics affecting real estate https://www.theurbanist.org/2014/09/02/85-foot-and-125-foot-height-limits-are-a-missed-opportunity
Market Forecast And Trends https://www.realtytrac.com/statsandtrends/wa/king-county/seattle https://www.zillow.com/seattle-wa/home-values https://www.trulia.com/real_estate/Seattle-Washington/market-trends https://www.movoto.com/seattle-wa/market-trends https://www.neighborhoodscout.com/wa/seattle/real-estate https://www.redfin.com/blog/2018/10/amazon-hq2-seattle-housing-market.html https://www.geekwire.com/2018/amazon-responsible-seattles-housing-cooldown-real-estate-experts-weigh