What are your thoughts on the Seattle housing market next spring?

Question

Hello!

I have a SFH rental in Seattle that I would like to sell next Spring when the current tenant's lease ends. Any thoughts on what you think the market will be doing? I'm ok with a slight price correction from today's prices but if the market tanks, I would probably continue to rent it. I also could refinance and lower my payment almost $200/month (which is significant to me) but I'm not sure it's worth it if I plan to sell in the Spring. Then again, I might end up holding it longer than I expect.

I know no one has a crystal ball but I'm curious what people's thoughts are.

Sara Simpson · Answer

@Megan Shay My property is near the Arboretum.

Looks like no one is expecting a crash. That’s encouraging! I guess I’ll just hang tight.

Aaron Nelson · Answer

Hi @Sara Simpson - I realize you asked about Single family homes (which follow slight different demographics and trends) but for what it is worth, CBRE recently put out Q2 2020 statistics on Total Investment Volume ($) Year Over Year for multifamily properties in the Top 20 US markets. Seattle was one of 5 markets where investment volume INCREASED in Q2 2020 compared to Q2 2019. Of course lots can change in a year, but it's still a good sign and shows the resilience of the Seattle real estate market.

Dave Skow · Answer

very highly desired neighborhood ...values there are solid

Megan Shay · Answer

@Sara Simpson - nice. Yeah, you'll always have the techies in that neighborhood. :-)

Megan Shay · Answer

I doubt the market will tank and if it does, it'll be a while out as @Brian Powers suggested. A lot of people wondered if the housing market would fall off a cliff when the COVID really started to hit the fan, but obviously it didn't. Just took a 2-month hiatus. What usually happens in late winter/early spring (Feb-April) happened 2 months later. Of course, a lot depends on how things shake out over the next few months and going into winter. If we are in full-on lockdown again, it may get ugly. But I'd expect a repeat of this "spring market."

@Sara Simpson - which neighborhood is your rental in?

Dave Skow · Answer

Sara - thanks for the post ...IMO its very unlikely that homes in seattle will be losing any value in the near future .....if there is a 50/50 chance you will sell - dont bother with refinancing the home ( unless there is some other reason thats needed like pulling out cash etc...)

If its likely you will keep it for awhile - refinancing is worth considering ...keep in mind rate/ fees for rental propeties are higher than rates for primary homes

Brian Powers · Answer

Hi Sara,

For what it's worth, I just redid the flooring in a house about half an hour north of Seattle who told me his house lost 35% of its' value during the last recession. What I have heard about the '08 recession is that the time it took for the market to bottom out was all the way until 2012. As long as you aren't worried about taking a slight hit, I would guess that you are fine. Plus, we are about to enter the real estate off season and spring is usually a better time to sell than fall.

What are your thoughts on the Seattle housing market next spring?

What are your thoughts on the Seattle housing market next spring?

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