The Pacific Northwest housing market is still white hot, with an average 10% increase in sales since last year! As 2022 is upon us, you might have heard the rumors of a market crash. Even if that isn’t a concern you have, you may be wondering about the trends and forecasts for the Pacific Northwest's housing market for 2022.
What will the year bring? Learn about the Housing Market trends and forecasts in Seattle, Bellevue and the Pacific Northwest for 2022. We've gathered insights and tips from some of the experts.
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Seattle, Bellevue and the Pacific Northwest Housing Market Trends 2022
Low mortgage rates, a better job market outlook and increased savings have all contributed to positive trends in the housing market as move into 2022. The prospect of homeownership is more accessible than ever before, but there’s still a pesky issue: lack of inventory. In many geographic areas there simply aren’t enough houses to buy.
Still, regardless of the challenges, the number of home sales increased at record numbers last year, in 2020, surpassing 2007 numbers. That record high was brief, but the continued high demand for homes contributed to a robust housing market, with forecasts of sales of more than six million for 2021.
That's the highest level of sales since 2006. The housing market is expected to slow down in 2022 as pricing continues to rise and houses are still largely unavailable. Mortgage rates are expected to rise as well.
Seattle, Bellevue and the Pacific Northwest Real Estate Market Forecast 2022
Low inventory has challenged the housing market in Seattle, Bellevue and the Pacific Northwest for years, but the issue was exacerbated during the pandemic due to the high competition and rising costs. The real estate market is entering its seasonal slowdown, which has led to a stagnation in pricing and fewer sales as we look at the Seattle housing market forecast as well as Bellevue and the Pacific Northwest.
The median home prices in the Puget Sound area remain unchanged, with a change of less than 1% for King County, Pierce County and Snohomish County at the end of the holiday season. The good news is that the median home price is expected to increase year-over-year by as much as 12% for King County, a nearly 23% increase for Snohomish County and a nearly 16% increase for Pierce County.
A number of years of underdevelopment have been further exacerbated by an increase in demand, particularly as Millennials enter the market in growing numbers. With limited new construction to fulfill the demand, the trend toward rising housing prices will continue throughout much of the Pacific Northwest.
Impact of the Pandemic on the Seattle, Bellevue and the Pacific Northwest Housing Market
There have been some comparisons to the 2008 foreclosure crisis, but the more recent COVID-19 pandemic is a very different animal. While every segment of the economy was impacted in 2008, those individuals who were wealthier or with higher-paying jobs have been able to make a veritable “killing” in the current housing market, which creates even more demand and contributes to the higher costs.
Should You Buy Investment Properties?
The question of whether to invest in Seattle, Bellevue and the Pacific Northwest doesn’t have an easy answer. Some things might give you pause to consider the wisdom of investing in Seattle real estate, like the increasing home prices. However, if you take a deeper dive, Seattle, Bellevue and Pacific Northwest real estate offer some tantalizing tidbits to consider.
Seattle has a population of more than 735,000 people, which makes it the largest housing market in the Pacific Northwest.
There are nearly four million in the Seattle metropolitan area, which means the Seattle housing market forecast is especially strong.
Seattle has always had a strong housing market, reinforced by the fact that the tech industry continues to bring more talent to the city.
The new development has been unable to keep up with the demand.
Historically, Seattle has been one of the best areas for real estate investments in the US.
The job outlook and economic summary continue to look solid in Seattle, with projected growth in new jobs for Seattle, Bellevue, and the Pacific Northwest in the coming years.
To reinforce the employment outlook, the Pacific Northwest is home to Microsoft, Amazon, Expedia, Starbucks, Nordstroms, T-Mobile, Epson, HP, InFocus, Intel, Pixelworks, Planar, Tektronix, Xerox, and many other companies.
People are flocking to Seattle, Bellevue, and the Pacific Northwest.
Oregon has no sales tax and Washington has no state income tax, which is just some of the reasons these areas are so attractive for real estate investment.
Where To Buy Investment Properties?
The sweet spot for investment properties is in those areas in Seattle, Bellevue and the Pacific Northwest that have a high population of renters. Single-family homes account for 40% of the housing market. Demand for housing continues to be strong and unabated, with a strong return on investment (ROI) likely in most areas.
It’s important to do your homework to really understand each neighborhood and specific location. Below are just a few areas to consider investigating.
Mann
More than 6% of Seattle’s population lives in the Mann area, which makes it one of the city's top neighborhoods. What’s even more impressive about this area is that 47% of the population in this area rent their homes. The average cost for a one-bedroom rental apartment is $1,503, which represents a 40% increase from 2020.
Bellevue
Bellevue is the fifth-largest city in Washington, with a population of 145,300 residents. Some 45% of the population rents their homes. The average cost for a one-bedroom rental apartment is $2,506.
Conclusion
Home prices are expected to continue to rise in the Pacific Northwest in 2022 - which will also push more people toward rentals and alternative living situations. Finding the right investment property is often a matter of doing your homework, with ample opportunities in Seattle, King County, Tacoma Bellingham and throughout the Pacific Northwest.
How Can EquityBrix Help?
EquityBrix can help you grow your wealth through our fractional real estate investment platform. Our team marries the needs of investors and real estate developers by providing opportunities for above-market returns. EquityBrix is committed to creating high-yield investment offerings, and we can help guide you through the new era of real estate investing.
If you want more information about tokenized real estate investing go to EquityBrix or EquityBrix.com/Learn.
If you are looking to grow your wealth and diversify your investment portfolio by learning about innovative ways of investing in real estate go to EquityBrix, or contact us for more information, or sign-up for the EquityBrix Newsletter.
*Disclaimer: EquityBrix is not an investment adviser. This information is for educational purposes only and does not constitute investment or tax advice. It’s important to be informed and to make your own investment decisions or do so in consultation with a professional financial advisor. Under no circumstances should this material be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of a written online prospectus relating to the particular investment.
FAQs
When is a good time to buy a second home?
If you’re looking to buy a home in a major metro area like Seattle, Bellevue or throughout the Pacific Northwest, consider buying it between July and August. You could also look for houses to buy between December and February. These times of the year tend to be the slowest for real estate, which may give you more flexibility and negotiating power.
What changes should we expect in the housing market during the upcoming months?
The housing marketing continues to be competitive and will be so for the upcoming months. As incomes climb in 2022, so will mortgage rates and rental pricing. Still, more sellers are expected to enter the market to take advantage of the higher prices.
The competition will continue to be fierce. There’s also a growing group of buyers expected to be on the 2022 horizon, with Hispanics making up more than one in 10 of the homebuyers. The sale of homes is expected to reach a 16-year high of more than 6% in 2022. Additionally, some 45 million Millennials are expected to become first-time buyers.
*Disclaimer: EquitySlice is not an investment adviser. This information is for educational purposes only and does not constitute investment or tax advice. It’s important to be informed and to make your own investment decisions or do so in consultation with a professional financial advisor. Under no circumstances should this material be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of a written online prospectus relating to the particular investment.
