Seattle Housing Market Report For June 2022
The Seattle housing market has been hot this year. Despite record-low inventory levels, last year saw record-breaking sales. No month had more than a month’s supply. By and large, industry observers describe a balanced market as one with a four- to six-month supply of inventory. This region has far less than that due to which home prices in the Seattle area continue to grow beyond the means of many buyers.
The new report from NWMLS shows that the Seattle housing market is now moving towards a more balanced market. The relief for buyers is that the steep price increases that we have seen so far this year continued to slow down in June. The surge of listings has begun to decrease the rate at which prices have been rising. The houisng stock is increasing whiles sales are decreasing as compared to the last year. Buyers in Seattle are pulling back right now because mortgage rates are much higher than last year due to which they have to pay more on that monthly mortgage payment.
June housing figures from Northwest Multiple Listing Service indicate a market change, presenting chances for some buyers. The brokers reported a robust increase in inventory (area-wide), double-digit declines in both pending and concluded sales, and the lowest year-over-year (YOY) price rise since June 2020. They added 14,223 new listings of single-family homes and condos to inventory during June, up from both May, when they added 13,075 homes system-wide, and a year ago, when they added 13,111 properties to the database.
At the end of June, there was more than double the inventory of a year ago, which is healthy for the marketplace. Both pending sales (mutually accepted offers) and closed sales declined a year ago. Pending sales during June were down 27.5% from last year while closed sales also fell 17.2% from a year earlier.
Area-wide prices rose about 10.4%, from a median price of $589,000 to $650,000. King County had the second highest sales price last month, coming in at $851,000. That represents a 9.1% increase from a year ago, but a slight decline (3.4%) from May’s figure of $880,000. Single-family home prices in Seattle jumped 12.3% from June 2021 ($890,444) to June 2022 ($1,000,000).
Prices for single-family home sales (excluding condos) in King County increased from $860,000 in June 2021 to $938,225 in June 2022 (a jump of 9.10 percent). As more millennials enter the market, the demand crunch will intensify. From the standpoint of supply and demand, Seattle’s housing market is currently one of the most inequitably balanced in the United States.
There’s just not enough supply to keep up. In 2022, the rate of appreciation is likely to slow significantly from current levels due to mortgage rate increases combined with more sellers entering the market. Growing demand is expected to continue as a result of a lack of new construction entering the market in suburban areas following years of underdevelopment. With interest rates remaining at low levels and a supply of homes available for sale in the region of less than one month, the perfect storm for rising house prices will continue, albeit perhaps not quite as ferociously as previously.
What you get to see are record-breaking housing prices and record-breaking low inventory. Seattle’s housing market is driven by employees of local tech businesses like Amazon and Microsoft, as well as corporations with big operations in the vicinity like Google and Facebook. Many of them didn’t want to work remotely in small apartments during the epidemic, so they sought spacious homes with office areas. Most of them have the financial means to compete with other buyers and raise home selling prices.
The housing market in the four-county Puget Sound region has the tightest inventory. Even with the healthy uptick in inventory, there is still less than one month of supply area-wide (1.48 months or six weeks). Many counties in the report are showing more than a month of supply, which is still significantly less than the industry’s “balanced market” indicator of four to six months.
The market in Kitsap County continues to be healthy. Kitsap County’s inventory is 110 percent more than it was a year ago, which will contribute to a more balanced market. King, Pierce, and Snohomish counties all have around five and a half weeks of supply. To summarise the last month’s statistics we can say that the Puget Sound region remains a seller’s real estate market with around 1.34 months of inventory — still well below what is required to meet the volume of buyers right now.
Source: NWMLS
Seattle Housing Market Trends (King County)
Data by NWMLS. The forecast is deemed reliable but is not guaranteed.
Below is the most recent Seattle Housing Market Report released by “Northwest MLS.” The report compares the key housing metrics of the City of Seattle (which is part of King County). For buyers in Seattle, the historic drop in the mortgage rates has been a significant advantage to move forward and scoop up some properties from the market.
Here are the numbers (RESIDENTIAL+CONDO) for June 2022 compared with June 2021.
ACTIVE LISTINGS FOR SALE
Total active listings in Seattle were 1,420.
This represents an increase of 15.82% as compared to June 2021.
Total active listings in All King County were 4,207.
This represents a rise of 86.40% as compared to June 2021.
NEW LISTINGS FOR SALE
1,754 new listings were added to the market by brokers in Seattle.
This represents an increase of 0.11% as compared to June 2021.
4,955 new listings were added to the market in All King County.
This represents an increase of 3.2% as compared to June 2021.
CLOSED SALES
1,068 closed sales were registered by brokers in Seattle.
This represents a year-over-year decrease of -25.11%.
3,143 closed sales were registered in All King County.
This represents a year-over-year decrease of -22.43%.
PENDING SALES
1,007 pending sales were registered by brokers in Seattle.
This represents a decrease of -31.96% from the same month a year ago.
2,819 pending sales were registered in All King County.
This represents a decrease of -35.21% from the same month a year ago.
MEDIAN SALES PRICE
Seattle’s median sales price increased by 10.94% to $887,500.
Last year, at this time, the median price in Seattle was $800,000.
King County’s median price increased by 9.11% to $851,000.
Last year, at this time, the median price in King County was $779,919.
MONTHS OF INVENTORY (MOI)
1.33 months represents the number in Seattle.
Months of supply in All King County is 1.34.
6 months of supply is when you have a balanced real estate market.
This shows that this region continues to be a strong seller’s housing market.
According to Realtor.com, King County is an expensive seller’s real estate market. The median asking price for a home in King County was approximately $899,000 in May 2022, up 20.7 percent year over year. At $905,000, the median sale price was even higher. If the Median Listing Price is increasing, the market is likely “hot,” and homes will sell more quickly. When prices increase, sellers will benefit. In May, homes in King County, WA sold for approximately 4.8% above the asking price. The Sale-to-List Price Ratio was almost 104.8%.
There are 64 cities in King County, where Realtor.com has active listings.
Beaux-Arts has a median listing price of $2.3M, making it the most expensive city in King County.
Des Moines is the most affordable city in King County, with a median listing price of $590,000.
The median list price of homes in Seattle is $850,000, trending up 13.5% year-over-year.
The median sale price is $885,000.
Seattle is also a seller’s market, having a total sales to total listings ratio above 0.2 tend, which favors sellers.
North Queen Anne has a median listing price of $1.4M, making it the most expensive neighborhood in Seattle.
Broadway has become the most affordable neighborhood, with a median listing price of homes being around $572,500.
Seattle Housing Market Forecast 2022-2023 (Latest Predictions)
What are the Seattle real estate market predictions for 2022-2023? 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. Seattle has a track record of being one of the best long-term real estate investments in the U.S.
Since the last decade (July 2012), the home values in the city of Seattle have appreciated by nearly 157.8% — Zillow Home Value Index. 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. From July 2018 onward the home values started declining and they continued so until November of 2019. The trajectory has shifted from last Oct 2019 to an upward trend.
The current typical home value of homes in Seattle is $984,905. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. It indicates that 50 percent of all housing stock in the area is worth more than $984,905 and 50 percent is worth less (adjusting for seasonal fluctuations). In May 2021, the typical value of homes in Seattle was around $836,000. Home values have gone up 17.8% over the past year alone.
Similar growth has been recorded by NeighborhoodScout.com. Their data also shows that Seattle’s real estate appreciated 142.47% over the last ten years, which is an average annual home appreciation rate of 9.26%, putting Seattle in the top 10% nationally for real estate appreciation. As of now, Seattle 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 breaking records month over month.
During the latest twelve months alone, the Seattle appreciation rate has been 22.56%, and in the latest quarter, the appreciation rate has been at 7.26%, which annualizes to a rate of 32.38%. This figure also corroborates Zillow’s positive forecast, so the home prices in this region are expected to increase by double-digits 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 housing forecast for Seattle, King County, and Seattle MSA. The home appreciation has been incredibly strong over the past year.
Seattle-Tacoma-Bellevue Metro home values have gone up 24.8% (current = $794,576) over the past year.
The Seattle metro housing market forecast ending with May 2033 is positive.
Zillow predicts that Seattle metro home values may grow by 9.6% by May 2023.
If this forecast is correct, Seattle metro home prices will be higher in the 3rd Quarter of 2023 than they were in the 3rd Quarter of 2022.
Seattle (City) home values have gone up 17.8% over the past year.
King County home values have gone up 24.5% ($934,054 as of May 2022).
Pierce County home values have gone up 19.6% over the past year.
Pierce county is comparatively affordable with a typical home value being $567,435.
The typical home value of homes in Snohomish County is $787,864, up by almost 28.9% over the past year.
The chart below, created by Zillow, shows the growth of median home values since 2012.
Source: Zillow
These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? 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. Opportunities abound for both buyers and sellers if they’re willing to act quickly.
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 bottom line: The current inventory (months of supply for SFH+condos) in this region remains tight — 1.33 months in Seattle and 1.34 months in All of King County. Therefore, in the long term, the Seattle real estate market remains as strong as always. This housing market is skewed to sellers due to a persistent imbalance in supply and demand.
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 2022 (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 Investment Overview 2022
Should you consider investing in Seattle real estate? 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. Seattle is a fairly walkable city in King County of Washington. It 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, single-family rental homes have grown up to 30% within the last three years. 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
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 bigger than that.
It extends to nearly four million people in the Seattle metropolitan area.
Since, 2010, Seattle’s population growth has increased by 18.7%.
This is the fastest among the 50 largest cities in the U.S (Census.gov).
Seattle’s real estate market has always been strong.
Tech companies Bring 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.
It is coupled with declining inventories & falling interest rates which leads to multiple offers and bidding wars among buyers.
This is the single driving factor of Seattle home prices.
A positive forecast for home values in the next twelve months – 5-10% appreciation is expected.
The BLS reported that the unemployment rate for Seattle fell 0.2 percentage points in April 2022 to 3.4%.
For the same month, the metro unemployment rate was 0.7 percentage points lower than the Washington rate.
The unemployment rate in Seattle peaked in April 2020 at 17.3% and is now 13.9 percentage points lower.
Future job growth over the next ten years is predicted to be 43.8%, which is higher than the US average of 33.5% (bestplaces.net).
Last Year’s Housing Statistics
In the last year, we had record-breaking sales in the Seattle housing market despite record-low inventory levels. No month had a supply greater than a month. By and large, industry analysts define a balanced market as having an inventory of four to six months. The Seattle area home prices continue to rise beyond the reach of many buyers. The median home sold for $828,111 in King County, up 14.2 percent from 2020.
Prices increased even faster in Snohomish County, where the median price of $680,000 increased by 23.6 percent, and in Pierce County, where the median price of $502,500 increased by 19.6 percent. San Juan County had the highest median sale price: $860,000, an increase of 26.8 percent over a year ago. Seattle’s median home price reached $859,000, an increase of 7.4 percent from 2020. Other areas of the county experienced greater increases.
Members of the Northwest Multiple Listing Service reported 107,354 closed sales in 2021. This was the first time the annual volume of sales exceeded 100,000 transactions. Completed sales exceeded $75 billion last year, surpassing the figure for 2020 by nearly $18.9 billion, representing a year-over-year (YOY) increase of nearly 33.6 percent.
Residential (single-family) home and condominium sales in 2021 exceeded those in 2020 by 11,594 transactions or 12.1 percent. Around 86 percent (92,713) of completed sales were single-family homes, while the remaining 14 percent (14,641) were condominiums. Buyers found themselves in competitive bidding situations for last year’s sales, frequently paying above the asking price. Across the board, buyers paid an average of 104.7% of the listing price. King County homebuyers paid 106.6 percent, followed by Snohomish County homebuyers who paid 106 percent.
Condo prices area-wide (NWMLS members) rose 11.8%, from $380,000 in 2020 to $425,000 for last year’s sales. In King County, which accounted for about six of every 10 condo sales (59%), the median price was $459,000, up a modest 6.7% from 2020. Less than 6% of last year’s sales of single-family homes system-wide sold for less than $300,000. About half (48.8%) had sales prices between $500,000 and $1 million dollars. Almost two-thirds of condos (63.1%) sold for a half-million dollars or less.
The highlights in MWLS’s annual compilation of statistics for the tri-county areas were showed that the average prices for single-family homes (excluding condos) in the tri-county areas of King, Pierce, and Snohomish have skyrocketed since 1991.
From 1991 to 2001 prices rose 88.8% in King County, 57% in Snohomish County, and 32.3% in Pierce County.
From 2001 to 2011 prices increased 31.2% in King County, 16.2% in Snohomish County, and 23.5% in Pierce County.
From 2011 to 2021 prices surged 249% in King County, 274% in Snohomish County, and 258% in Pierce County.
A closer look at 8,580 condo sales within six “sub-areas” of King County (where nearly 60% of all condo sales were located) shows Seattle accounted for 3,373 of them (about 39%), followed by the Eastside with 36%. The priciest condos, with a median sales price of $550,000, are on the Eastside, followed by Seattle ($495,000). Head south for more affordably priced condos. In the Southwest part of King County, the median sales price was $280,000, followed by the Southeast segment at $340,000.
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. 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 several 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.
Much of the 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’s 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 nearly 9.26%. 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.
Rental prices are declining in Seattle due to the ongoing pandemic which has caused high vacancies. As of July 7, 2022, the average rent for a 1-bedroom apartment in Seattle, WA is currently $1,919. This is a 20% increase compared to the previous year.
Over the past month, the average rent for a studio apartment in Seattle increased by 2% to $1,375. The average rent for a 1-bedroom apartment decreased by -1% to $1,919, and the average rent for a 2-bedroom apartment decreased by -4% to $2,500.
Two-bedroom apartments in Seattle rent for $2,500 a month on average (a 19% increase from last year)
Three-bedroom apartment rents average $3,195 (a 7% increase from last year).
Four-bedroom apartment rents average $3,985 (flat from last year).
Only 15% of the apartments can be rented for less than $1500, and more than 50% of the apartments are priced at more than $2,000 per month. This shows that overall rent prices are very high in Seattle and a huge drop in rent prices can help new renters to lock in a long-term lease.
These are some of the most affordable neighborhoods where the rent prices are below the Seattle average rent:
Innis Arden
Richmond Beach
The Highlands
Broadway
The Zumper Seattle Metro Area Report analyzed active listings last month across 13 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Washington one bedroom median rent was $1,501 last month. Bellevue was the most expensive city with one-bedrooms priced at $2,570 while Oak Harbor was the most affordable city with one-bedrooms priced at $1,270.
Here are the best areas to invest in a rental property in the Seattle Metro Area in 2022. Investors should consider the suburbs of major metropolitan areas for residential rental opportunities, as they’re an ideal investment and have seen an increase in buyer demand in this pandemic. The cities should be within driving distance of major cities or metro areas. Locations with growing employment opportunities attract more tenants. Most importantly, vet the local neighborhoods thoroughly — their livability, vacancy rate, average rents, quality of the local schools, and amenities such as parks, restaurants, gyms, movie theaters.
The Cities With Fastest Growing Rents in Seattle Metro (Y/Y%)
Bellevue had the fastest growing rent, up 27.9% since this time last year.
Redmond saw rent climb 21.5%, making it second.
Seattle was third with rent jumping 21.4%.
The Cities With Fastest Growing Rents in Seattle Metro (M/M%)
Bellevue had the largest monthly rental growth rate, up 6.2%.
Seattle rent increased 6% last month, making it second.
Olympia ranked as the next fastest growing with rent climbing 5.8%.
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 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 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 several 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? 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 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.
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 typical value of homes in North Redmond is $1,809,188, up 32.6% over the past year.
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 mixed 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 typical home value in North Delridge is $670,846. North Delridge home values have gone up 8.6% over the past year. 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. This neighborhood exists alongside 536 submarkets in the greater Seattle market.
According to Redfin.com, the Capitol Hill housing market is somewhat competitive. In October 2021, Capitol Hill home prices were up 18.2% compared to last year, selling for a median price of $780K. On average, homes in Capitol Hill sell after 7 days on the market compared to 20 days last year. There were 37 homes sold in October this year, up from 32 last year.
On Apartmenthomeliving.com, the pricing for Studio Apartments in Capitol Hill currently ranges from $675 to $8,049 with an average price of $3,228. On average rent for a studio apartment in this residential neighborhood is $1,768, and has a range from $675 to $3,945. One-bedroom apartments average $2,350 and range from $770 to $3,980. A 2 bedroom apartments averages $3,350 and ranges from $1,192 to $4,995. Three-bedroom apartments average $5,392 and range from $2,650 to $8,049.
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 $651,903. Highland Park home values have gone up 13.8% over the past year. According to RentCafe, the average rent in Highland Park, Seattle, WA is $1,711. Highland Park rent is 21% lower than Seattle’s average rent. The price range for a studio apartment in Highland Park, Seattle, WA is between $1,850 and $2,299. The price range for a 1-bedroom apartment in Highland Park, Seattle, WA is between $1,850 and $2,299.
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.
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 typical home value in Sammamish is $1,372,491, up 28.3% over the past year.
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. According to Apartments.com, the average rent in Sammamish is $1,976. When you rent an apartment in Sammamish, you can expect to pay as little as $1,678 or as much as $2,517, depending on the location and the size of the apartment. The average rent for a studio apartment in Sammamish, WA is $1,678 while the average rent for a two-bedroom apartment in Sammamish, WA is $2,467.
The ten neighborhoods in Seattle have the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
Yesler Terrace West
Belltown Northeast
First Hill East
Belltown East
Central Waterfront
Belltown Southeast
International District
Belltown
First Hill
South Lake Union
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 in 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 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.
For a majority of investors, buying or selling real estate 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.
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.
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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, 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.zillow.com/seattle-wa/home-values
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://www.littlebighomes.com/real-estate-seattle.html
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
Will 2020 Be the Year Seattle’s Housing Market Starts 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
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.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/
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