In early October, Seattle brewed up local and national attention, as former Starbucks president Howard Behar listed his iconic condominium at the famed Escala building. Represented by Realogics Sotheby’s International Realty broker Denise Seavitt, the amazing suite includes sweeping views of Elliott Bay, the Space Needle and Lake Union. Media outlets were abuzz with coverage of the listing, as it was featured on Puget Sound Business Journal, Extra and King 5’s Evening Magazine.Read More
As Seattle continues to experience increased demand for in-city homeownership amidst scarce new construction condominium options, it’s little surprise that the median home price of a resale condos rose to $625,000 in 2017, up 19-percent compared to last year. That’s a much higher growth percentage than we’ve seen on the S&P/Case-Shiller Home Price Index, which indicated that the tri-county metro area home prices had increased 12.7-percent in October 2017. Seattle led the nation in home price appreciation all year, and it is worth noting that the index does not include new construction or resale condominiums.Read More
Not sure if renting or buying is the right move? Check out the chart below for some more detailed analysis:
The Bottom Line: For most of the product lines, it only costs about 1% of purchase price more to own than to rent with prevailing trends. And with the market expanding at 5-10% per year depending on the submarket, that capital appreciation buries this delta.
I’ve never seen an imbalance like this between owning and renting, especially in the urban markets. While it's true most new residents will rent for a term or two, eventually the draw to buy into the marketplace will take hold for many and we need to look at those massive apartment towers like incubators for a new generation of homeowners.