A throwback of our boy from his younger days. He wasn't feeling very photogenic this month.
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We hope everyone is keeping safe and enjoying the holiday season. We are grateful to report that all is well with us and looking forward to the New Year. We would love to catch up, please feel free to reach out to us anytime.
Want to learn more about real estate in a specific neighborhood? Just ask, we'd love to help.
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A Tale of Two Very Different Markets
Since the start of the pandemic, rent prices have taken a haircut across the Seattle area. The trend has been a steady decline, now topping 14% since the first week of March. Areas near South Lake Union are even harder hit with some luxury complexes reducing rents by nearly 20% from this time last year. It seems likely that when the eviction moratorium expires, there may be a surge of evictions and even further price reductions. The current moratorium expires on 12/31 unless extended.
On the other hand, the suburban sales market is seeing its best year ever. Record low interest rates and work from home flexibility have led to rich demand for single family homes. The more affordable areas are seeing impressive growth. Maple Valley is a hot spot, up over 21% this year where inventory is the slimmest it has ever been. Federal Way, Kent and Auburn which are usually more approachable markets are following closely behind. These areas are positioned for further gains into the ’21 buying season as well. Buyers are also fleeing to the North and East. Mill Creek has popped 15% and the North Bend area is also up double digits on the year.
Single family homes in Seattle and on the Eastside are significantly underperforming. Madrona, Beacon and Mt Baker are close to the flat line. Bellevue is up about 2%, the lowest annual gain in a decade. The overall condo market in these areas have been holding up, but studios and small 1-beds are mostly negative.
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So, what’s in store for ’21?
For the short term, it feels likely for further expansion into the areas that have been gaining speed this year. As COVID restrictions loosen and in-person work is restarted, it feels likely for the coveted city neighborhoods to play catch-up. Of course, this could take until ’22 to be reflective in the numbers and is dependent on the big employers next move. I met with a recruiter at Amazon earlier in the month. The company is still moving people to the area but not into the offices until the 3rd quarter.
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Helpful Resources
If you are currently in a rental and are weighing the pros and cons of renter life vs. owner life, why not crunch the numbers with this Rent vs. Buy calculator from nerdwallet. It has numerous options to consider in your calculations.
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Vin & Candice Cangialosi, Real Estate Brokers
North Pacific Properties, LLC
2224 Queen Anne Ave N
Seattle, WA 98109
V: 206.939.3778 | C: 206.595.9645
vin.candice@settleinseattle.com
www.settleinseattle.com
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