Time to Buy a House Or Renting (Seattle, Bellevue: for sale, real estate market)

[leoooo]

I know this is a debatable topic at all the time especially given the hot real estate market in Seattle... We moved to Seattle 1 year ago because of jobs and have tried to browsing houses this year. We are still debating whether we should rent or buy at this specific timing.

Renting is definitely less pressure, and we can save money on travelings. And it is easy to find a decent place these days with cheaper price (FYI a tool that my colleagues in Amazon are using:

https://bit.ly/2HHOTKX

On buying house side, we are still considering the timing. Whether this is a good timing to buy one. Will the market crash some time in a few years? People are buying like crazy now, and even Kenmore becomes hot.

Any thoughts?

[homesinseattle]

Hi Leo,

If you think you are going to be here at least 5 years, probably a good idea to buy something. No place is immune to to economic adjustments but this area looks pretty solid for the foreseeable future. With SFO Bay Area prices about two times our prices, many believe there is room for growth in the market here. If you do choose to buy, pick a desirable area (Kenmore is certainly good) and get something with some equity upside, I like places that need some cosmetic work. That also, in the bidding process, can limit competition a bit. It's also nice to buy a "modestly priced" home, something that could be rented out as an investment if/when your life plans change.

On the other hand, if you don't really know your future plans, I'd say rent. Buying is a personal decision and not for everybody.

[Ruth4Truth]

Originally Posted by homesinseattle

Hi Leo,

If you think you are going to be here at least 5 years, probably a good idea to buy something. No place is immune to to economic adjustments but this area looks pretty solid for the foreseeable future. With SFO Bay Area prices about two times our prices, many believe there is room for growth in the market here. If you do choose to buy, pick a desirable area (Kenmore is certainly good) and get something with some equity upside, I like places that need some cosmetic work. That also, in the bidding process, can limit competition a bit. It's also nice to buy a "modestly priced" home, something that could be rented out as an investment if/when your life plans change.

On the other hand, if you don't really know your future plans, I'd say rent. Buying is a personal decision and not for everybody.

Homes, could you get me caught up on what's going on in the buying market? Are listed prices fairly accurate as to actual closing prices, or are places getting bid up significantly? Why are you seeing? Is the behavior any different in West Seattle than other parts of the city? Or are the up-biddings in W Sea. by a lower percent overage of advertised price than elsewhere in town?

[homesinseattle]

Originally Posted by Ruth4Truth

Homes, could you get me caught up on what's going on in the buying market? Are listed prices fairly accurate as to actual closing prices, or are places getting bid up significantly? Why are you seeing? Is the behavior any different in West Seattle than other parts of the city? Or are the up-biddings in W Sea. by a lower percent overage of advertised price than elsewhere in town?

Ruth, most good places in central locations are getting bid up. If you direct message me and give me your email, I can send you a list of actual sales prices in a certain location (like West Seattle) over the last 30-45 days.

[eugene_b]

Very good question that I’ve been thinking a lot about lately. I didn’t do any hard math on this but to us renting is more attractive at the moment. Rentals are very reasonably priced at the moment, there is a loooot to choose from and we don’t need to worry about all the house expenses (tax, maintenance, insurance, etc). While houses in the same place where we are renting are a bit on the expensive side (compared to rent) but much more importantly - there is nothing to choose from, there is a handful of them on the market (especially if you exclude those 100+ year old “great renovation project” houses).
I don’t really think extremes are likely, eg I don’t believe houses will quickly reach SF/NYC levels or that they will crash all the way to the bottom. But it does feel like we are a bit closer to the top than to the bottom. And even if some minor non eventful recession happens soon and the house prices don’t bulge much, my hope is that may be there will be more to choose from in the market.

All of this of course is my $0.02 and is pure speculation.

[leastprime]

JMO:
Seattle: a lot of new rental buildings will be coming to market beginning this fall and into 2019 (Jackson St).
This will of course puts pressure on the existing rentals and lessens the need for couples/small families to find a close-in, suitable & affordable housing.
Eastside: Purchase in Bellevue-Redmond will remain a tight market. Rentals may loosen up because many renters may want to move into Seattle and reverse commute.
JMO. Speculation, just for fun.

[American Expat]

Originally Posted by leoooo

I know this is a debatable topic at all the time especially given the hot real estate market in Seattle... We moved to Seattle 1 year ago because of jobs and have tried to browsing houses this year. We are still debating whether we should rent or buy at this specific timing.

Renting is definitely less pressure, and we can save money on travelings. And it is easy to find a decent place these days with cheaper price (FYI a tool that my colleagues in Amazon are using:

https://bit.ly/2HHOTKX

On buying house side, we are still considering the timing. Whether this is a good timing to buy one. Will the market crash some time in a few years? People are buying like crazy now, and even Kenmore becomes hot.

Any thoughts?

I would be nervous buying into the Seattle area market right now but if you are confident in your job/income situation that you will have it and live in the house for 5+ years, you will likely come out okay or better. Keep in mind we have I think it's a 1.7% excise tax you will have to pay when you sell your house...so for an average $750K house, that's over $12K so the point is, make sure your situation is stable before buying. The longer you're in the house, the more it makes sense to buy versus rent.

[Seattleareanative]

I agree with homes - if you think you'll be here for 5+ years, I think buying is the way to go. Even though people who have lived here for awhile think our prices are crazy high, buyers coming from SF, LA, Chicago, NY, DC, Boston don't see the Seattle area as "expensive". New construction in the area is going to continue to be at historic lows due to lack of land and high construction/labor costs. The Washington State Condominium Act has scared the heck out of developers and architects so they are building apartments instead of condos. The Downtown Seattle Association published the Downtown Development Guide in early March stating that for the new properties currently being built, 489 will be for sale and 6,324 will be for rent! I think Leastprime is right about the pressure on existing rentals.

I do most of my business on the eastside and it's hard to see things cooling down here. Chinese buyers/investors are clamoring for Bellevue, Clyde Hill, Hunts Point, Mercer Island. Microsoft and Amazon employees (Amazon employees with kids anyway) are all over Redmond, Kirkland and Sammamish.

In a nutshell - the greater Seattle area has an influx of people that the housing supply simply can't keep up with. Sure, we could see a blip and a slight correction but for the buyer who's looking to hold a property for 5+ years, I think owning is the way to go.

[Bluefox]

I seriously almost bought a house but decided to continue renting for the time being. I just love the city too much and don’t particularly care for the southern areas, which are the only areas I can afford and within a reasonable commute, at least at this point in my life. I may rent for 1-2 more years and may be totally priced out of the area entirely in 2 years, who knows. I’m single, early 30s, and just haven’t quite been able to resign myself to life in suburbia. If I was partnered/kids I would definitely buy if I could afford a decent area.

[homesinseattle]

Bluefox, the Rainier Beach area close to Lake Washington south of Seattle is an underrated part of town. You can still get a home in the 500s there, which is affordable compared to many areas in this region.