Why the Seattle Real Estate Market is SO HOT 🔥
Seattle's housing market is HOT, but why? I explain...
The fact driven reasons that Seattle's Real Estate Market is so hot!
1. NO INVENTORY
There is absolutely no inventory. Below you'll get some perspective of how short we are on inventory relative to a "balanced market."
MARCH 2018 - 3,300 homes for sale
MARCH 2018- 2,679 closed sales
HISTORICALLY IN A BALANCED MARKET:
MARCH 2011- 14,000 homes for sale
MARCH 2011- 2,033 closed sales
We've essentially cut the amount of homes for sale in 5!!!!
2. GROWING POPULATION
"Seattle and its surrounding counties added 86,320 new residents between April 2015 and 2016, marking the region’s biggest population gain this century, fueled in large part by the region’s technology industry. King County saw the biggest growth, adding 52,300 people." says the Seattle Times
RIGHT NOW: We have 1 home available for every 826 people in King County.
IN A HISTORICALLY BALANCED MARKET: There is 1 home available fore every 135 people.
3. JOB MARKET
- "Jobs grew more than twice as fast as housing from 2010 and 2015, with more than two jobs for every new unit of housing permitted." Says Seattle Curbed.
- Amazon is leasing more than 12,000,000SQ' of commercial space and counting, employing over 40,000 people in our area and growing.
- In addition, we have microsoft, google, etc...
- It's attractive to companies to move up here - the office space is half, there's no income tax, and employees and companies can NET more money living and working up here.
- The average household income in Seattle has shot up 41%, which also makes Seattle attractive.
4. FOR BUYERS
- Hang in there and don't be discouraged. Yes it's going to be hard, yes you may lose an offer, yes it may take some time. Work closely with your agent to craft a strategy that will get you in the house.
- If you think you're "overpaying," think again. There's no sign of slowdown in our area -- if buying a house meets your lifestyle, then it makes sense for you.
5. FOR SELLERS
- You probably have a lot of pent up equity.
- Homes Values in Seattle Earn an Equivalent of $54 Per Working Hour, Almost Twice the Average Wage
- Yes it's tricky to move - simply because home prices are going up so much and there isn't a lot of downsizing inventory.
- How do you buy and sell, use equity, get creative, etc -- this is a topic for another video, but something you can work closely with your agent on and SHOULD do.
- MOST IMPORTANTLY - if you're thinking about selling your house, hire a professional to do it that can achieve these types of results. All too often sellers try to do it on their own, or hire a firm that doesn't provide the strategy that can net you the most money.
- If your goal is netting the most money, interview a few agents in the area so you can understand their marketing plan and process. It's NOT just putting a sign out front or just "listing it online." Above and beyond service and marketing strategy will get you above and beyond results.
Are you thinking about starting your home buying journey? Reach out, we can help you.