I’m going to show you why its important to consider where you are investing. You have heard me say this before but real estate is hyper-local. Markets just 10 minutes away from each other can behave very differently. I’ll show you what I mean.
See the video
for more detail but let me explain. I’m going to compare 3 major markets in the Seattle region. I’ll show you how the Median Sales Price in each market increased. The important factor is that some markets increased more rapidly than others.
Let’s examine these three markets:
Dating back to November of 2016, the Median Home Sales Price in Seattle was $550,000. As the real estate market moved up and appreciated, the Median Sales Price today is $867,000. That reflects a total increase of 52%. Not bad right? Well, lets take a look at Bellevue.
During that same 5 years, Bellevue’s Median Sales Price moved from $777,000 to $1,554,500. This increase reached triple digits at 101% over 5 years. Nearly 20% a year! Kirkland saw even higher Median Sales Price increases.
The Kirkland market out-performed both Seattle and Bellevue with a whopping 114% increase. 5 years ago, Kirkland had a Median Sales Price of $619,500. The Median Sales Price is now $1,313,500.
In summary, the message is very simple. There is a wide range of variables that influence the Median Sales Price. When considering Eastside versus Seattle, buyers consider the differences in schools, public safety, homelessness, politics and more. In doing so, its tough to argue with the data. It’s quite obvious that there has been a migration of Seattle homeowners moving to the Eastside.
It is not all that different than New Yorkers moving upstate or to Connecticut or San Francisco residents moving from Downtown to Mill Valley or Marin County. Real estate investing comes with upside and risk. Being thoughtful about jobs, schools and politics plays a critical role in the total return of your investment.
In my opinion, you should work with an advisor. Need help? All you have to do is ask.