Is the Seattle housing market IMPOSSIBLE?
Is it impossible to buy in Seattle? What can you expect?
Jonas Means of Cutler Investment Group and I address whether or not the Seattle housing market will EVER flatten out, how millennials can buy a home, and if investment properties still make sense.
Q. Is it too late to buy a home in Seattle? Are we peaked? Will home prices ever flatten out?
A. If you're a buyer, you can hope so. The average home price in Seattle is $760,000 and appreciated almost 14% from last year. If this continues, by 2020 the average home price will be $1,000,000 in Seattle and $2,000,000 by 2026. But, let's face it. With our tech boom and continued population growth; it'll continue to grow, just not to the extent.
Q. With the population growth, tech growth, and millennials entering the market - How can millennials purchase a home?
A. Truly, it's about getting creative with your downpayment.
- You can now use stock you have in a company as a form of income.
- Exploring the dual income situation (married, friend etc) for a down payment and more house.
- Renting out a room or AirBnB.
- There's even a company called Loftium that will give you a downpayment as long as you AirBnB a room out for a year!
Q. Are investment properties still a good option?
A. Seattle is actually one of the best places to invest in residential real estate. Interest rates remain at a low and population is going to continue to grow. It's about being savvy on where you put your money. I also feel like there's a demand for a single family residence for rent in Seattle. In the Seattle area, we are tracking 14,293 units that are scheduled for a 2018 completion. For 2019 the count is 7,053 units, a number that will increase as we get closer to 2019.
If we have this many people coming to Seattle - what happens if they have a dog, two kids and are married? They're not going to want to be in a 1,100 sq' apartment. They're going to want a home.