Seattle is ideal if you’re looking for a place to buy a property or invest in the United States. The real estate market thrives because of Seattle’s beautiful landscape and location. However, it’s difficult to know the current property value as a new investor.
Our housing experts will look at current home prices and the real estate market situation in Seattle.
Current State of Seattle's Real Estate Market
Industries and influx of people are some of the reasons the real estate market is solid and a good choice for investors to make some money. Although recent economic setbacks heavily impacted the real estate market, the business seems to be making a tremendous comeback, much faster than we imagined.
Our housing experts believe that this fast comeback is due to the position of two of the most prominent American companies, Amazon and Microsoft, which has been two of the city’s largest employers. Other factors, such as low inventory and rental vacancies, are additional reasons the real estate market is still solid.
For instance, Seattle’s 0.8 months of inventory as of January 2021 only compares to other cities in the United States. Due to the low inventory, the available homes in the market are low, making the home prices go up by 14% year over year to around $627,000.
Rental services have also been steady because the influx of people moving to Seattle has risen. The rental vacancy rate rose 0.1% year-over-year.
Housing Prices in Seattle
Despite the pandemic, the housing prices in Seattle have somewhat remained in an upward trend. This is due to low mortgage rates offered in the city, maximizing buyer demand. Our team will take a look at home prices, condo prices, and rentals.
Home Prices
The median home price in Seattle is $627,000, up by 14% year over year. This price is above the national average, and this price trend shows no signs of declining.
Condo Prices
The average condo price in 2021 is $493,880, a 5.9% increase from the last year 2020. The condo sales prices also rose 9.76% year-over-year.
Rentals
Rents in Seattle have started to creep back up after dropping to an average of $1,896 from $2,024 last December. Our housing experts attributed the drop to the pandemic as workers worked remotely. Now, with the vaccine rollout and return of people to the office, the price will continue to surge.
Forecast for Seattle's Real Estate Market
The pandemic was a setback for investors in the real estate market. However, experts have forecasted the continuous rise of home and rental prices from 2021 upwards. With more people moving into the city and more companies establishing their bases, expect the prices to soar.
With the prices soaring, it will become more difficult for investors and homeowners to purchase houses, even with the low mortgage rates. However, our team indicates that there will be more listings in subsequent years in Seattle.
Factors Behind the Demand for Seattle Real Estate
The demand for houses in Seattle is due to the following factors;
Employment Rate
The employment rate has also driven the housing demand in the Seattle real estate market upwards. Although the unemployment rate surged by 16.6% due to the Coronavirus pandemic in 2020, Seattle has one of the highest numbers of employees, considering that companies like Microsoft and Amazon [1] have their headquarters in the city .
Demand
Seattle offers one of the lowest mortgage rates in the United States, making it a little easy for buyers to purchase a home. Adding that to the job opportunities, low inventory, and incredible transportation system has contributed to the massive housing demand in the city.
Schools and Companies
The establishment of schools and companies in Seattle has driven the demand for houses in the real estate market. Companies like Boeing, Amazon, Microsoft are the largest employers in the Seattle metropolitan area, with over 60,000 of their employees currently working there. With these employees, you should expect the housing demand to be incredibly high.
The presence of colleges and schools also contributed to the demand for Seattle real estate. Seattle University and Seattle Pacific University both contribute to the need for student housing with over 5000 students.
With this high amount of students, housing demand will also rise. This is one reason you should invest in Seattle real estate.
Why Invest In Seattle Real Estate?
Seattle offers great locations to work, school, and live in Washington due to its lush environmental friendliness. The city has long been known as one of the best cities for real estate investment, and with the low-interest rate, our housing experts recommend investing in the city real estate market.
FAQ
Is it a good time to buy a house in Seattle?
The best time to buy a house in Seattle is around April, June, and July. During this period, you can find plenty of homes to buy in the market. However, you may face stiff competition from other buyers since the period is a popular time to buy a house.
Is Seattle real estate overpriced?
Seattle real estate is slightly overpriced, although house prices are based on certain factors, such as employment rate, demand, and low inventory. These factors have increased the bidding war rate amongst buyers, causing real estate to overprice.
Is Seattle a good place to invest in real estate?
Yes, Seattle is a good place to invest in real estate. According to U.S News, Seattle is one of the best places to live because of its lush forests and environmental friendliness. This is one reason why the real estate market thrives there.
Conclusion
Seattle real estate market is a viable business that’s highly rewarding. With house prices expected to rise continuously, this offers the best opportunity for people to invest in the real estate market. Thanks to the information provided by our housing experts, you are now aware of home and condo prices in Seattle.
