Is the Seattle area too inflated?

Question

Prices in the pacific Northwest have absolutely skyrocketed over the past 5 years.  The average home in King county is now 700k.  I'm looking to break into the multifamily market but everything seems way overpriced.  Even the suburbs (Renton, Lynwood, Edmonds) are extremely expensive now.  Rents have increased but the numbers still don't seem to add up.  What are your thoughts on investing in the greater Seattle area during this boom.  Should I be looking out of state to invest in multifamily's instead?

Jameson Sullivan · Answer

I've looked over a couple multi families here in Tacoma and even down here it's getting overpriced  (although not nearly as bad as Seattle) that being said I think there's still goodness to be found I  this end.  As they say "appreciation us the icing on the cake" but I'm expecting to see quite a bit throughout certain areas of Tacoma over the next 10 years. Cheers

Account Closed · Answer

Seattle will continue to go up. Chinese money has moved from being invested in Vancouver Canada to Seattle. Watch for property taxes to sky rocket further. As long as high tech does well in Seattle, there won't be much correction. Oh, except when "the big one" hits. That changes the landscape (literally) a lot. I'd look at Everett and Tacoma, maybe Puyallup. Out of state is: Phoenix for sure. Low property rates, fastest growing county in the country, friendly investor laws and great opportunities.

Louis Chan · Answer

I've been looking in Everett. It's the start of the same sort of situation currently in Tacoma. At the county auction, pretty much every property gets into a bidding war between a handful of investors. Before you know it, you're already almost at market price for an auctioned property. I'd say most are paying over market and expecting appreciation to fill the price tag in the next couple years.

Is the Seattle area too inflated?

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