North King County vs. South King County appreciation

4 Replies

I read in the latest NWMLS update that North King County is appreciating at 28% while south King County is appreciating at 11%. 

All of my houses are in South King County. :-(

What cities make up North King County that I can find homes for 300-400K?

I found this map that seems to help: https://www.seattletimes.com/business/real-estate/king-county-housing-market-kicks-off-2018-even-hotter-than-before-as-seattle-breaks-price-record/

Hi Jack,

North King County cities would be along the lines of Shoreline, Lake Forest Park, Kenmore, Bothell, Cottage Lake, Duvall.  I'm surprised that the numbers are so skewed.  I've seen around 20% appreciation at least since last year in South King County cities such as Renton, Kent.  I'm going to check out the latest posts and see if I can find what you were looking at.

If you'd like, I can take a look for homes in your price range around North King County.

Originally posted by @Jake Alger :

Hi Jack,

North King County cities would be along the lines of Shoreline, Lake Forest Park, Kenmore, Bothell, Cottage Lake, Duvall.  I'm surprised that the numbers are so skewed.  I've seen around 20% appreciation at least since last year in South King County cities such as Renton, Kent.  I'm going to check out the latest posts and see if I can find what you were looking at.

If you'd like, I can take a look for homes in your price range around North King County.

 I just updated my post with a link to a map that shows appreciation by area/city. It's amazing that west Bellevue went up 92% in a year. Of course the risk is that as soon as you buy in it drops a bit. I believe east Bellevue dropped some 24% a year or so ago when I was looking at the same map.

@Jack B. From a quick glance at your link, it appears to be the cities I mentioned in my post are definitely growing quickly.  That's the crazy thing about our location is that you can only move north or south, not really east or west due to the mountains / water.  I would expect for the southern regions to pick up even more if these numbers prove what they suggest.  People will be priced out of the northern areas and be left with looking south, if they want to keep their commutes.

I would assume your properties in South King County are going to see higher cash flows in the coming months along with greater appreciation.  This year is setting up for another run for the record books.  It's going to be a crazy summer.  Those who get in early are going to have the better opportunities in my opinion.

Jack, I would recommend not making a knee-jerk reaction based on one article.  It is true that the North end historically has appreciated higher than the South end.  But there are LOTS of other factors to consider.  One of the biggest (if you are local) is where you live.  I live in the south end and our portfolio is located entirely in Seattle and south.  If you are in the south end do you really want to drive to Duvall to rebuild a leaky toilet?

Another thing to consider is specific neighborhoods.  For example, I am bullish on the Rainier Valley.  As it gets gentrified it may see appreciation far greater than the north or south ends.

Finally, remember the 3 rules of real estate -- location, location, location.  A well-placed property in the south end can knock the doors off a poorly placed north end property.  (Sorry about the pun!)

Also, don't get greedy. If you put 20% down and have an 80% mortgage then you are leveraged 5:1. That means your lowly 11% appreciation is returning 55% ROI. I don't know about you, but 55% ROI is just fine by me! I put a video together explaining all this. Search youtube on our Full Service Property Management channel if you want to watch the video.

In a nutshell: buy and hold.

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