Seattle Predicted to Have Second Hottest Real Estate Market in 2017
Home prices in Seattle are soaring, so much so that Zillow predicts the city will have the second hottest real estate market nationally in 2017. In fact, within Seattle itself, home values have skyrocketed, increasing in price by 42% since 2011. Current homeowners and developers looking to build new housing units could stand to see enormous profits.
Neighborhoods by the Numbers
Although most of Seattle is experiencing enormous appreciation rates, each area is a little bit different. Here is a breakdown showing appreciation rates in some of Seattle’s most sought-after suburbs:
- Zillow predicts that the Seattle metro will appreciate by 5.6% in the coming year, which places the area second nationally. Provo, Utah tops the list. This statistic is an overall measurement, covering a large portion of the city including places like Tacoma, Bellevue and neighborhoods farther north.
- Kirkland has seen an enormous rise in prices. Over 2015 and 2016, home prices rose by 14%, with the median price rising to $520,000.
- Median home prices in Bellevue have soared, gaining 17.5% in the past year according to data aggregated by Trulia.
- Between January 2016 and 2017, price per square foot increased by 17% in Issaquah.
As you can see, this is a metro-wide trend, with all areas increasing, but some by more than others. The trend is largely fueled by a combination of international buyers, and other buyers flocking to the city in search of some of the best tech jobs in the United States.
Now is the Time to Build and Sell
For buyers, now may not be the best time to buy unless the buyer is looking for a place to call home for several years - and not an investment property. Residents who have owned homes in the Seattle area for several years, however, will find that selling now will likely result in enormous profits. (Though with severely limited inventory, sellers will certainly have a difficult time finding a new place to live if they wish to stay in the Seattle area).
Developers and investors will fare even better. Those that have portfolios of properties within the Seattle metro area will find that the time is ideal to make improvements and put their properties on the market. In fact, with bidding wars and multiple offers so common, buyers sometimes offering tens of thousands more than the property’s listing price. Some homes in Seattle have sold for over $100,000 over the listing price, and it is not unusual to see upwards of 10 offers on a property.
It is likely that this trend will continue into the foreseeable future. Seattle is filled with opportunities, particularly for those seeking careers in the tech sector. Choose investments carefully and keep an eye on appreciation rates in each area to maximize profit.