5 Seattle Real Estate Market Trends for 2019
Table of Contents
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Seattle's real estate market ishotter than ever,and it's time you get in on the action. The prices of homes are breaking records, making it the perfect place and time for you finally buy your first home. Keep reading to learn more aboutSeattle's real estatetrends.
1. The Stock is Low
One real estate trend is Seattle isthe number of homes for sale is dropping quickly, so you better act fast. Currently, the number of houses available in Seattle, Washington is a 20 year all-time low.Even though Seattle's population is quickly increasing, the number of empty homes or houses being built is not able to keep up. Seattle's population is breaking records each year, with no signs of slowing down anytime soon.On an average month, there are about 2,000 homes for a single family and condos for sale. Compare this number to the over 7,500 homes that were were sale each month over the past few decades.You would think that because of these numbers, homeowners are cashing out, but that's actually not happening. On average, aSeattle homeownersits on their property for at least a decade to make about a 64 percent profit.This means Seattle has one of the five biggest real estate returns in the country, but still, no one is selling. People who currently have a home in the area know that if they want to stay in the area, there are few options to move.When local real estate stock is low, it's low for everyone in the area. Even if a homeowner home needs repairs, they are better staying and doing the renovations instead of striking out trying to find a new place to live. So if you find a home in Seattle that you love, you better act fast.
2. People Want To Live Seattle
Even though stock on homes is low in Seattle, people still want to live in this city. This is because of the flourishing job opportunities and growing population which go beyond the usual aimless University of Washington recent graduates.People are now coming from all over the country and world for Seattle's high paying jobs, which allows them to have the money to buy a house and not just rent.While cities like New York have rapidly rising housing costs, but not everyone there has the means to be a homeowner. Actually, most of the wages of the jobs in New York do not meet the needs to buy a home in any borough of Manhattan.Seattle on the other hand, as a growing tech industry which makes people want to move to Seattle. There's so much opportunity for recent grads since basic mathematics or computer jobs pay over $100,000, which is enough to own a home. People are making more money than ever in Seattle, but are fighting to own a home in this shrinking housing market.
3. Seattle Needs Talent
Tech talent is in high demand in Seattle, and high earners are needed to keep this housing market moving. You can see this simply by seeing the Microsofts campus in Redmond, orAmazon's in South Lake Union. It's no surprise that tech is taking over Seattle.It's expected that the number of these Seattle based tech jobs will continue to growso Seattle is still a honeypot for any tech job hunters. There's a need for tech workers in just about every kind of office in every industry in Seattle. As the industry changes, there are new tech positions that did not exist five years ago.There are also more opportunities in mathematics and computing are also showing yearly growth, and there will be thousands of jobs added each year. Even in neighboring counties, there will be hundreds of tech jobs added each year.There are so many companies in the area that need staff in areas from cyber security to crypto currency R&D to cloud computing. Cyber securityis now becoming crucial for more and more companies, so there will be a growing need doe experienced staff.The tech industry is also competitive but still has enough room for everyone coming up. Seattle needs talent, and those people need a place to live, which is why the housing market has been on fire for the last two years.
4. The Supply-Demand Balance is Shifting
It used to be simple to find a couple of options when it came to finding a Seattle home. There was a time when you could narrow down your choices to a few options so you couldnegotiate. But times have changed, now, if you are sitting on a house, you don't have to negotiate.You could even sell your home for an inflated price and not sit on the market for that long while you wait for your down payment. Prior, some sellers would opt for lower prices to get the deal over. Now it's s seller's market.People are fighting over the few homes that are for sale, and are bidding up to one another. Due to this desperation, it's hard to tell what Seattle homes are actually worth.This cycle ends well for the seller, but it can be hard for the buyer who keeps on losing their dream home.Rent prices are at an all-time high, so people are looking to buy. High rent is actually what inspires people to buy a home. In the long run, paying rent is a loss when youcompare it to a mortgagewhich is an investment.There are also foreign investors who have picked up a lot of properties that were actually intended to be for sale and have turned these homes into rentals. Because of the recession, this was common. Buying property and renting it out when no one is buying is a great way to turn a profit.Because when the market demand is high, homes that should be for sale are replaced with apartments that are also expensive. When you combine this with a decreased number of homes that are for sale being built, then you can see why the prices for homes are quickly rising.
Closing In On 24 Months In A Row
Seattle's real estate market keeps showing hot numbers regardless of the season. Each month people predict that prices could drop, but they continue to rise, and the same goes to the price of rent.There has been arising price streakin Seattle real estate since 2016. The only metro area that can compare to Seattle is San Francisco in the late 90s to the early 2000s.Currently, Seattle is outpacing Las Vegas, Los Angeles, San Francisco, and New York's prices compared to last year. You will still need a skilled realtor to make a purchase in Seattle right now.Even the price of the starter homes is growing, and the rest of the market is going up as well. Month after month, prices are going up almost a full percentage. Even in the chilly winter months, the Seattle market is still growing.
5. Seattle Real Estate Trends For The Best Neighborhoods
If you are looking to buy a home in Seattle, butdon't know where to look, here are the top three neighborhoods for first-time homeowners.
Ballard
Ballard is a very diverse neighborhood which is ideal for both families and singles alike. There's a median home price of$760,000 with a median rent price of $2,296. This area is incredibly walkable, as it sits right on the edge ofthe Lake Washington Ship Canal.This neighborhood was a formerScandinavian fishing community, so it has a nice blend of bits of old culture combined with new breweries, shops, bars, and restaurants.The schools in this district are considered to besomewhere above average. Ballard doesn't have the best schools in the city, but the schools are still considered to be better than average. This neighborhood is overall safe with friendly people and definitely worth living in.
Queen Anne
Queen Anne is one of the most walker-friendly neighborhoods in Seattle as it's just a short distance from downtown. This neighborhood is divided up by Upper Queen Anne and Lower Queen Anne.Upper Queen Anne has an elegant and refined atmosphere. It's known for itsVictorian-era architecture and homes. WhileLower Queen Anne has a more modern feel, complete with a range ofmulti-level condosand new construction that seems endlessLower Queen Anne's home's median price is about$560,000, while Upper Queen Anne's homes median home price is around $850,000. For the most part, Upper Queen Anne tends to be safer than Lower Queen Anne.
Capitol Hill
Capitol Hill is considered to be one of the best neighborhoods in Seattle. This neighborhood has just about anything you could want from cool coffee shops and quirky dive bars to elegant restaurants with some of the best food this city has to offer.You'll find Capitol Hill next to downtown, making it a go-to for young professionals. The area is not super safe, but it's still safer than a lot of other neighborhoods near downtown.If you want a home near a vibrant and lively atmosphere, then you want to be inCapitol Hill. Homes here have the median price around $600,000, with a median rent around $2,350.
Find Your Seattle Home Today
If there's one thing we're seeing with all of these Seattle real estate trends, it's that the Seattle real estate market is hot right now. If you want to live in Seattle, you better act now. For more Seattle real estate advice,contact us today!
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Find the Best Mortgage Lender for Your Home Loan
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FACTORIA and SOMERSET ; Bellevue Neighborhood Tour
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Down Payment 101: How Much Money Do I Need to Buy a House?
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COVID-19 Mortgage Help for Homeowners
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Can I Afford To Buy A Home In Seattle?
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Choosing the Best Lenders for Home Loans
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Avoiding the Worst Seattle Mortgage Lenders
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