Seattle Real Estate Appreciation Rates: What’s It Mean For You

Photo Credit: www.crepa.ca

It’s certainly no surprise that Seattle’s real estate market is through the roof. Back in July the Seattle Times reported surging home prices reaching record highs of 10.7% in May compared to a year ago which ranked Seattle the second fastest growing major city in America behind only that of Portland, OR. Local home costs soared 55% since they bottomed out just four years ago which currently puts our median home price at $666,500.00.

If it’s valuable to you, please direct your attention to Neighborhood Scout for detailed information on Seattle home appreciation rates spanning the last twenty years.

My Takeaway:
This market like every market is great for some and not so great for others.

Who’s It Great For?
– Real estate investors who bought within the previous four years. If this is you, you’re sitting on a golden egg. Your home likely appreciated upwards of 10% and while rental rates might be in your favor so is the opportunity to sell and relieve your property management duty.
– Empty nesters. Whether you’re kids have gone away to college or you’re simply looking to downsize for whatever reason, now’s the time. Take advantage of high rate of return and use that equity to settle into a home more suitable for your current lifestyle with enough left over for a rainy day.

Who’s It Not So Great For?
– First time home buyers simply because many first time home buyers may not have the capitol to compete in this high priced market.
– Those looking to upgrade. If this is you now’s not the time. The market is competitive and while much of that is beginning to settle down we’re still seeing buyers pushed into lower price brackets simply because they can’t compete with over asking offers within the price range they’ve been approved for.

*Note, Seattle is an extremely strong real estate market backed by the tenancy of a very diverse and successful corporate infrastructure. Companies like Boeing, Microsoft, Starbucks and Amazon are now backed by Expedia, Facebook, Uber, and several others. The likelihood of an economic downturn, although possible, is not likely to affect Seattle as much as potentially other American cities. If you must buy or upgrade now, rest assured that your investment is most likely going to appreciate at a healthy rate.