After covering real estate and the general concepts involved with real estate investing, it seems like an appropriate time to cover a few real estate markets that intrigue me. To kick off the series – I am covering a location near and dear to me, Seattle. Aside from being known as a hub for e-commerce, coffee and tech corporations, it also makes headlines for its real estate climate.
As Travis Pittman reported, “Among 52 markets analyzed with at least 1 million people, Seattle ranked No. 5 when it comes to the highest percentage of completed flips with financing in 2017.” Given these numbers, the city clearly acts as a hotspot for real estate investors. Given the tech boom in Seattle, an influx of workers also inundated the city. This highly populated environment makes it a prime focal point for investors. We know location is key and because everyone was moving to Seattle, people also turned their attention to Seattle real estate.
Now even outside neighborhoods get lumped into this skyrocketing housing market. As Kurt Schlosser highlights, “Fleeing to further flung locales won’t necessarily help. Home prices are up at least 15 percent in every county in the Puget Sound region and in Snohomish and Pierce counties, record highs for home values are being set. Snohomish had the largest year-over-year price increase at 18.8 percent, Northwest MLS reported.” As a result, natives are hesitant to make moves. While rent in the city is equally astronomical, many don’t have the collateral needed to buy into the market or don’t want to risk losing their current setup.
This also caused buyers stuck in heated competition. Listings were limited as many homeowners were forced into staying put out of fear being unable to afford an upgrade or even lateral move given the climate. As Zosha Millman says, “The narrative of last year’s housing market in Seattle was all tight competition: Too few homes meant a lot of competing bids for the mid-range ones, which meant homes were selling quicker and values were up. And 2018? Probably similar.”
With a median list price just under 500,000 dollars and median days at the market 34.1, homes are selling like crazy in this west coast hub. As John Burns Real Estate Consulting Seattle’s senior manager, Annie Radecki, told Realtor.com, “Anything on the market that is halfway decent is selling immediately with multiple offers. New-home builders used to sell first come, first served. But more than half of them have converted to selling to the highest and best offer.” Bidding wars have become common as a result of the scarce climate and the high number of motivated buyers. Given the high paced nature and tight competition in Seattle, investors need to stay on their toes with thorough research on a quick turnaround. It also makes the Seattle real estate market an exciting state to monitor for bystanders and real estate enthusiasts alike.