By James Dainard
For the first time in a decade, the greater Seattle area is now the nation’s hottest housing market. Due to booming growth for large companies like Amazon, Google, and Microsoft, housing in the Seattle area is in high demand.
According to S&P CoreLogic Case-Sbilier National Index, typical single-family houses across King, Snohomish and Pierce counties have experienced a 10.7% year-over-year price increase. This is double the national increase of 5.3%. Portland is second at 10.3%, followed by Denver, Dallas, and Tampa at 8% each.
House prices are rising fastest in the starter home market, where there are fewer homes and many buyers looking for something cheaper. The Millennial generation .is having a large impact on the market, especially as that generation replaces older workers. Starter home prices are up 12.7% compared with a year ago, while luxury home costs are up 9.7%.
These factors are all great news for the real estate market. But what about profit? Because of the influx of new house-hunting prospects, there may be a lack of inventory when it comes to offering the desired types of single family homes. Low inventory with strong demand results in higher sale prices and profit.
Here are some additional market trends investors can expect in 2017:
- National projections estimate this year will be the fastest real estate market on record. Nationally homes stayed on the market an average of 52 days in 2016. Heaton Dainard’s projects averaged 13 days on the market in 2016.
- Millennials and Baby Boomers will dominate the market for the next decade, with 30% of millennials buying their first house in 2017.
- Properties in the suburbs of Seattle, Everett, and Tacoma will be the hottest areas for buyers.
- On average, Heaton Dainard’s projects are selling 6% above asking price, resulting in higher profits for investors.
- The Federal Reserve has raised interest rates by .25% for the first time since December 2015. This affects high mortgage rates and bank loans, which is correlated to numbers of available foreclosures.
Heaton Dainard has a large project portfolio planned for 2017. We are focused on helping investors find and sell marketable homes in desired areas. Our brokers are out every day looking at properties, attending auctions, and finding projects for rehabilitation. If you haven’t been to our Investor 101 Class, please join us every other Monday to meet our team and learn about the investment process. Visit our website for more information.
About the author…
James Dainard is one of the founding partners of Intrust Funding, LLC. He has been buying and selling real estate in King, Snohomish and Pierce Counties for the past seven years. James has built a reputation in Washington for providing investors with multiple exit strategies and supplying them with easy and fast lending sources. He enjoys staying fit, spoiling his dogs, and traveling to exotic locations with his wife Clair.
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