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

7 Replies

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.

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.

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 

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? 

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.