Seattle housing market predictions? (real estate, apartments, lease)

[primaltech]

Hi all, just looking for any suggestions or insights here.

Been renting small apartments in Seattle for 2.5 years now, and man, the rent vs sq. ft. is ridiculous here. My current lease is up at the end of this year- I'm currently living in Capitol Hill and working Downtown. I have some complaints about my place/this particular area of the neighborhood, but it's been mostly fine. Job is going great, and I usually work 1-2 days in the office and the rest from home. That might be increasing to 2-3 days in office next year. But I'm still successfully living a car-free lifestyle since I moved out here... can't believe it's been this long now since I last owned a car. Saving a lot of money that way, only sometimes wishing I had a car. I usually take the light rail for my commute.

Anyway, I'm planning to stay in Seattle, and I really would like to buy a condo... this would be my third home I've ever purchased before, but first time trying to pull this off on the west coast. My budget is maybe somewhere in the upper $300's, I'm roughly guessing. Just as far as what I think I might could get approved for, if I pulled some various savings together for a down payment. I have no debt at all, and excellent credit.

I guess my big question is, should I try to buy when my lease is up at the end of this year? Or, rent 1 more year, and try to buy at the end of '23? Considering the interest rate, and the market and all that? And considering how renting has been going up as well.

I've been kind of browsing Zillow a bit for some stuff available mostly in the Queen Anne area, and man, it's like, half a million dollars for 500 sq. ft. And of course the interest rate right now makes this probably a terrible time to buy.

A friend was suggesting to look at what's available on the south side, like around the airport I guess, and I'm sure I could get a bigger place down there, but I really want to continue to live here in the core part of the city, in an ideally walkable type environment. Ideally would like to live over close to the waterfront trail along the bay. But, I'm definitely open to any suggestions anyone has.

Also I'm single guy and in my late 30's, not planning for a family. I like the dating scene of big cities, so that's another reason why I don't want to live too far out, at least at this current stage in my situation.

Appreciate any thoughts!

[homesinseattle]

Originally Posted by primaltech

Hi all, just looking for any suggestions or insights here.

Been renting small apartments in Seattle for 2.5 years now, and man, the rent vs sq. ft. is ridiculous here. My current lease is up at the end of this year- I'm currently living in Capitol Hill and working Downtown. I have some complaints about my place/this particular area of the neighborhood, but it's been mostly fine. Job is going great, and I usually work 1-2 days in the office and the rest from home. That might be increasing to 2-3 days in office next year. But I'm still successfully living a car-free lifestyle since I moved out here... can't believe it's been this long now since I last owned a car. Saving a lot of money that way, only sometimes wishing I had a car. I usually take the light rail for my commute.

Anyway, I'm planning to stay in Seattle, and I really would like to buy a condo... this would be my third home I've ever purchased before, but first time trying to pull this off on the west coast. My budget is maybe somewhere in the upper $300's, I'm roughly guessing. Just as far as what I think I might could get approved for, if I pulled some various savings together for a down payment. I have no debt at all, and excellent credit.

I guess my big question is, should I try to buy when my lease is up at the end of this year? Or, rent 1 more year, and try to buy at the end of '23? Considering the interest rate, and the market and all that? And considering how renting has been going up as well.

I've been kind of browsing Zillow a bit for some stuff available mostly in the Queen Anne area, and man, it's like, half a million dollars for 500 sq. ft. And of course the interest rate right now makes this probably a terrible time to buy.

A friend was suggesting to look at what's available on the south side, like around the airport I guess, and I'm sure I could get a bigger place down there, but I really want to continue to live here in the core part of the city, in an ideally walkable type environment. Ideally would like to live over close to the waterfront trail along the bay. But, I'm definitely open to any suggestions anyone has.

Also I'm single guy and in my late 30's, not planning for a family. I like the dating scene of big cities, so that's another reason why I don't want to live too far out, at least at this current stage in my situation.

Appreciate any thoughts!

Hey primal. You should be able to slide into a few smaller studios (in some of those older Cap Hill character buildings) in the $300-$350k range.

[primaltech]

Originally Posted by homesinseattle

Hey primal. You should be able to slide into a few smaller studios (in some of those older Cap Hill character buildings) in the $300-$350k range.

Prediction for a year from now, or so (in terms of being a buyer)? Better situation? Worse situation?

[primaltech]

If I save as much as I can for another year, I guess that slightly increases my budget range.

[Bluefox]

I’m seeing several 1br condos in the 300s in and around Capitol Hill. I’m not sure how many of them go significantly over ask anymore, that seems to have really tapered off in a lot of areas. Not seeing nearly as many offer review dates either. Just have to be careful to check HOA fees, some of them are quite high.

Have you thought about possibly the Northgate area? You can get more space for your budget up there. It’s not in the core part of the city but there are many condos walkable to the light rail station which is easy access to downtown and all the neighborhoods along the way. Of course, those will be a bit more sought after for that reason.

It’s a tough call in this environment. Prices could trend downward but we also don’t know how much interest rates will continue to rise.

[homesinseattle]

Originally Posted by primaltech

Prediction for a year from now, or so (in terms of being a buyer)? Better situation? Worse situation?

I think prices in the central core will be roughly the same a year from now. Interest rates have ticked up but demand remains fairly strong. If anything, buyers just adjust their expectations and price points. Interesting development: I’ve already gotten a few “get me the hell out of this red state” called since the Supreme Court Roe v Wade decision, will be interesting to see how that affects migration patterns. We’ll stay blue, we have water, we have jobs, people will always come here.

[jabogitlu]

My personal opinion is that there's never a better time to buy real estate than 10 years ago. If you're ready to buy, buy. Interest rates are not going down in a meaningful time period for your decision. And even if somehow they do drop in the next 3-4 years, you can always refinance.

At that price point you'll probably be looking at older buildings. The 1-br units in my condo building typically sell between $350 and $450k depending on floor level, view, level of renovation, and whether or not there is a deeded parking space. (Pro tip, if you find something with a parking space, that's $100-$150/month that you can rent it out for...)

[primaltech]

Originally Posted by homesinseattle

I think prices in the central core will be roughly the same a year from now. Interest rates have ticked up but demand remains fairly strong. If anything, buyers just adjust their expectations and price points. Interesting development: I’ve already gotten a few “get me the hell out of this red state” called since the Supreme Court Roe v Wade decision, will be interesting to see how that affects migration patterns. We’ll stay blue, we have water, we have jobs, people will always come here.

Yeah, that's exactly what we needed here, even higher housing demand. Thanks as always, SCOTUS.

[primaltech]

Originally Posted by jabogitlu

My personal opinion is that there's never a better time to buy real estate than 10 years ago. If you're ready to buy, buy. Interest rates are not going down in a meaningful time period for your decision. And even if somehow they do drop in the next 3-4 years, you can always refinance.

At that price point you'll probably be looking at older buildings. The 1-br units in my condo building typically sell between $350 and $450k depending on floor level, view, level of renovation, and whether or not there is a deeded parking space. (Pro tip, if you find something with a parking space, that's $100-$150/month that you can rent it out for...)

Great point about the refinancing, thanks for reminding me of that option. And yeah, I'm just hoping to even get a bedroom. Which is crazy, since I'm making way more money now than when I bought a freakin' 3 bedroom house (...in Metro Atlanta, in 2009...) But yeah.

I know it's location, location. But I don't really want to live in suburbia, or commute to it. (Especially since if I move further out then I'd need to buy a car, which would negate some of the savings.)

Ideally I'd rather find something on the Queen Anne side, just I think I just kinda like it a bit better over there, but I guess I could go with a slightly quieter part of Cap Hill. I know I don't want to be near Broadway, which is a street I am not enjoying.

[primaltech]

Is West Seattle any cheaper than the main part of the city?