Seattle posts major gains, more construction in the city
Prices of real estate in Seattle has increased drastically in the third quarter, according to the Seattle Post-Intelligencer. Home values posted their largest gain in the past five years during the third quarter of this year in King, Pierce and Snohomish counties. The average home value in these counties was $263,500 in the third quarter, which is 2.6 percent higher year-over-year and 1 percent higher than the second quarter.
King County homes posted the largest gain of the three counties. Home values in Seattle were up 8.8 percent over last year at $380,100. With a thriving economy and the addition of many new corporations downtown, more people are getting attracted to homes downtown driving prices up.
Home values are expected to rise another 1.8 percent in Seattle over the next year, which is 0.1 percent higher than the national expectation. Median rent prices are expected to increase as well. According to the publication, Seattle rent median rent is $1,637, up 4.5 percent year-over-year and 1.4 percent from the second quarter.
"We're likely seeing home values fall back into the negative range in some markets due to the close of the traditional home-buying season," real estate expert, Stan Humphries said in a report. "While that doesn't mean the recovery has come off the rails - in fact, most markets have hit bottom - it does present a confusing environment for consumers. Looking forward, we expect to see home values bump along the bottom for some time, before increasing at a slow and steady pace."
More building complexes are going up, as well, including the remodel of the Marion B. Robbins Apartments in the Queen Anne neighborhood. A nonprofit agency, Bellwether Housing, purchased the property at 2701 Third Ave. for more than $6.45 million. The organization plans to rename the building the Parker. The main goal of this project is to be able to offer affordable rentals in an area that is becoming increasingly attractive to many people.
As the first apartment complex for the organization in the neighborhood, the group’s executive director, Sarah Lewontin, told the Puget Sound Business Journal that she is particularly excited. The building will feature 50 apartments that will be rented to anyone who makes up 60 percent of the region’s median income, which is $61,600 for a single household or $88,000 for a family of four.