Things are clearly on the upswing for buyers in the Evergreen State. For the past year, economists have predicted a period of strong growth. In this article, we address the Washington state housing market, predictions for 2020, what cities buyers should invest in, and more.
The History of Washington State
The state of Washington is named after the first President of the United States, George Washington. It was the 42nd state admitted to the Union. Both its official seal and official state flag bear George Washington’s portrait.
Nicknamed the Evergreen State, this Pacific Northwest state boasts temperate rainforests, mountains, and sprawling woodlands. It is the leading lumber producer in the county, and it also supplies the largest amount of several crops such as apples, hops, and cherries.
As the 18th largest state in the country, it is also the 13th most populous. It clocks in with roughly 7.4 million people. Here, you will find a a climate that varies enough from east to west to provide suitable weather for every taste. It is home to Mt. Rainer, the highest peak in the United States, several national parks, and the iconic Seattle Space Needle.
Read 2018 Georgia Real Estate Market Predictions
During 2018, it has an unemployment rate of 4.8%. This figure has held steady from month-to-month for the past year. The cost of living is much higher than the national average. The biggest factor in the cost of living comes from the Washington housing market. Rent prices illustrate this point well. Renters can expect to spend on average, at least $100 more a month for a comparably sized apartment elsewhere in the country.
The same kinds of cost increases apply to the purchasing of homes. These price increases, coupled with declining home inventory, are set to make 2018 a sellers dream for the Washington housing market of 2018. Here’s why sellers can expect some advantages.
What the Washington State Housing Market Looked Like in 2018
According to Zillow, the median home value in Washington is $367,769. Over the past year, home prices in Washington have risen an astounding 11.5%.
Zillow estimates these values will increase another 6.1% over the course of 2019. That’s two incredible years for sellers back-to-back. Zillow sites the median list price per square foot in Washington as $203. Currently, the median price of homes listed on Zillow in Washington is $359,000 while the median price of homes that sold is $344,700.
Homes in Washington spend an average of 75 days on Zillow. The Washington state housing market has a near perfect ten health rating from the real estate giant. This rating considers the increase of the median home values balanced against foreclosures and delinquent mortgages.
Influencing Factors in the 2018 Washington State Housing Market
The prediction of a continued housing shortage for the state of Washington in 2018 will likely keep demand and prices high as inventory stays low yet again. Experts define a balanced market as one in which there is a 4-6-month supply of homes at the current rate of sale.
Currently, the Washington housing market overall has a 1.5 months supply of homes. It’s fair to say that this is in part due to the general market slow down that occurs during the winter months, but experts caution attributing the declining supply solely on the winter time.
In the meantime, sellers can enjoy the advantage as builders seek to come up with creative solutions to solve the housing shortage. For many states in similar predicaments, this involves creative solutions, smaller homes, and smaller housing lots.
The Best Places to Live In The Washington State Housing Market
60% of residents live in the Seattle metropolitan area, and Seattle itself. You will find the Rainy City in King County, with a population around 700,000 thousand. It’s a vibrant city with a rich musical history and alluring cityscape.
It also has a bustling economy that ranks as the 11th largest metropolitan economy in the country. You will soon see why it is a haven for start-up companies and environmentally friendly practices. It harbors the headquarters of five major Fortune 500 companies including Starbucks and Amazon. The unemployment rate for Seattle is 3.4% as of February, just under the national average.
Spokane is the second most populous city in Washington, and its housing market has performed remarkably well over the last year. Home values increased in Spokane more than 12% in 2017, and Zillow predicts that values will continue to rise another 3.6% over the course of 2018.
The Evergreen State is Making Green
Washington is enjoying a great seller’s market at the moment, and all indicators point to another year of selling success for the Evergreen State. As supply rushes to meet with the ever-growing demands of homebuyers, sellers can sit back and relax for the moment. For those thinking about putting their home on the market in the state of Washington, there doesn’t look like there’s a better time to do it.
What is Going on in the Puget Sound and King County Districts
The housing market in the Puget Sound District favors purchasers unquestionably more than it did in 2018. Dynamic postings are expanding, and costs are leveling out. “As we head into the prime purchasing and selling season, we’re seeing better news for purchasers in King County,” said Coldwell Banker Bain president and COO Mike Grady, in the most recent report from the Northwest Multiple Listing Service.
Middle Costs for Homes in King County
The middle cost for a private home in King County expanded by a little more than 3 percent among March and April. However, it plunged 4.83 percent contrasted with April 2018. Snohomish County’s middle private home cost saw a 1.18 drop from a year ago as of now, with homes in Pierce County really observing an expansion of just shy of 5 percent. That came as King County saw a huge 78.5 percent development in stock more than 2018. Snohomish County saw 57 percent development. This all is an obvious contrast from Puget Sound’s blasting seasonally tight market in past years, to one where purchasers have more opportunity to decide, and more alternatives to look over. “Purchasers currently have three-to about a month rather than three-to-four days to settle on a choice,” Grady said.
As far as why middle costs over a year ago appear to drop, ascribed to various components, including more stock, lower loan costs, and a relentless economy.
A Little Information on Contract Rates
As indicated by one gauge, contract rates are averaging simply 4.4 percent for a 30-year fixed advance. That thus has prompted two socioeconomics contending as purchasers: Older property holders exchanging down to littler houses, and first-time purchasers searching for worth.
That being in this way, RE/MAX chief overseeing intermediary Dick Beeson noticed that purchasers should in any case be “prepared to thunder,” with the market commonly tending to warmth up in the mid year months. In the not so distant future, cost increments are still prone to keep backing off contrasted with a year ago. “We are all around gradually inclining far from a total economically tight market, rather than twofold digit builds we saw in 2018,” said Grady. In the interim, things keep on being hard for tenants in the state’s greatest metropolitan territory.
As per a report from Apartment List, middle leases in Seattle expanded for the fourth straight month in April, since a decrease in December. Bragging the most costly lease any city in the Seattle metro region is Bellevue, with a 0.4 increment over March, and a 2.6 percent expansion over a year ago.
All things considered, we’re here to take care of that issue for you! On the whole, how about we investigate the lodging business sector patterns and forecasts that make the Evergreen State a decent spot for land speculators. From that point onward, we’ll give you a rundown of the best urban communities for purchasing an investment property as indicated by Mashvisor’s land information and prescient investigation.
Costs and Real Estate Appreciation
Home costs are on the rise in numerous states and real metropolitan urban communities in the 2019 US lodging market. In any case, as stunning as it might be, a few forecasters are anticipating that home costs in Washington State will stay level consistently. Others, then again, have anticipated just a slight increment over the coming months.
In spite of this moderate value development, Washington State is anticipated to lead in land appreciation in 2019. That is as indicated by Veros Real Estate Solutions (Veros), an honor winning industry. Veros pioneers in big business hazard the board, insurance valuation administrations, and prescient investigation. In its latest US Housing Outlook Report and Press Release, Versos allows a year figure of land esteems. In addition, it uncovers the main 10 lodging markets anticipated to value the most through December 1, 2019. Three of these 10 urban communities are in Washington State.
Where to Invest in the Washington State Housing Market: Top Cities
As indicated by Zillow, the middle home estimation in the Washington State land market is $379,500. That is an expansion of 6.9% over the previous year and Zillow predicts they will rise 5.2% in 2019. It’s best for land financial specialists to purchase investment properties in the top urban communities before costs become excessively expensive.
Solid Demand for Rental Properties
The interest for investment properties is expanding in various urban communities of Washington State. Home purchasers can’t manage the cost of the developing property costs. In this manner, they have gone to leasing as opposed to owning their own homes. This is clearly uplifting news for land financial specialists in Washington State. What’s more, this extreme interest is seen in almost every lodging segment – single-family homes, lofts, and condominiums.
One factor adding to the expanding rental interest is the low supply of lodging stock over the state. Land specialists accept that a decent market has around four to a half year of stock. The Washington State land showcase, be that as it may, holds around two months of supply. Subsequently, there are insufficient homes available to be purchased to satisfy the need for homebuyers. This clarifies why Washington State lease costs keep on rising, making lodging even more expensive.
As a land surveyor in investment properties, purchasing in Washington State can be a savvy move to create rental pay. Do you possess a speculation property here? You may have a decent shot of scoring brilliant returns.
Leasing on Airbnb in Washington State
Numerous property speculators in the US are going to leasing on Airbnb as a superior venture methodology to profit in land. Experts recommend to lease properties as summer homes. In any case, you have to remember that there are various guidelines with respect to momentary investment properties in Washington State. They may vary starting with one city then onto the next. Make a point to comprehend and pursue the standards and guidelines in your city of decision before leasing a house on Airbnb.
Washington State Housing Market: Land Showcase
When discussing the Washington State land showcase, your first idea would presumably go to the Seattle housing market. Nonetheless, there are other extraordinary performing urban communities in Washington State that merit looking further into for land putting resources into 2019. Obviously, saying this doesn’t imply that that the Seattle housing business sector is a terrible spot for land venture. Or maybe, in light of the fact that it’s such an aggressive market, it is difficult to take a few to get back some composure of a beneficial venture property there. What is a more astute choice for a learner land financial specialist? Purchase a venture property to lease in one of these urban areas in the Washington State land advertise.
Last Words for Washington State Housing Market Investors
Land financial specialists discover houses at deal for sensible costs and a decent rental yield. These two elements take into consideration positive income and an exceptional yield on interest in the long haul. They are the absolute most significant components that make Washington State one of the top areas for land putting resources into 2019.