Trends & NewsSeattle Housing Market Forecast for 2020 by Heba Baker September 30, 2019September 29, 2019 by Heba Baker September 30, 2019September 29, 2019Strong real estate investor demand and lower property prices are in the 2020 Seattle housing market forecast. As it remains one of the strongest markets in the nation, it makes sense for investors to be wondering about housing market projections for Seattle real estate. Let’s get into it.Seattle Housing Market Predictions 2020With double-digit increases in home values over recent years, a lot of people were left wondering when will the Seattle housing market slow down. It wasn’t just Seattle, but properties in cities all across the Washington real estate market were appreciating at fast rates. But according to the latest housing market statistics, it seems the time for a cooldown has come. Here’s more on that and a couple of other predictions in our Seattle housing market forecast.1) Seattle Home Prices Will DropExpect lower prices when buying an investment property in Seattle. Redfin reports that the average selling price of Seattle houses for sale is $675,000; meaning Seattle house prices are down 0.44 percent from last year. According to Zillow, it’s going to be more affordable to invest in Seattle real estate next year than it’s been in years. The median home value has gone down 3.9 percent over the last 12 months. Currently, it’s a little bit over $700,000. The Seattle real estate market is expected to continue this cooldown trend by dropping another 2.9 percent in value in the coming 12 month period. With prices dropping at a stable rate, there should be no worry of a Seattle housing market bubble.Small depreciation isn’t anything to be worried about. Seattle real estate investors should have some more space for negotiation with soft housing market trends on the horizon and lower investment property mortgage rates. A buyer’s market gives you better chances of finding Seattle investment properties for sale.Want to start your search now? Check out this guide: How to Find Investment Properties for Sale Near Me2) There Won’t Be Much Home ConstructionThe Seattle real estate market forecast includes construction- just not for residential housing. While Seattle did make it back in the top ten in the Urban Land Institute and the PwC: Emerging Trends in Real Estate 2020 report, the Seattle housing market isn’t looking too strong on the growth prospect as home construction is down. In the outlook for house building, it scored 31 out of the 80 real estate markets studied in the report. But other real estate prospects, like the expansion in office space (8.8 million square feet already under construction) keep the general state of the Seattle real estate market strong.3) There Will Be Other Factors Supporting the Seattle Housing Market So is Seattle a good place to invest in real estate? According to the above-mentioned report, Seattle real estate remains in expansionary mode, following a national trend of the longest economic expansion in US history. Clearly, the latest Seattle housing market trends show signs of a healthy correction. Will the housing market crash in 2020? The majority of experts don’t think so. With property prices leveling off, the housing market in Seattle is projected to hold up quite well.There are a lot of positive factors forecasting a strong Seattle real estate market in 2020, such as:Strong investor demandDevelopment and redevelopment opportunitiesJob densityProjected net migrationOverall strong economy4) Rental Properties Will Be Sustainable InvestmentsThere are some positive prospects, but is it a good time to buy a house in Seattle for investment? You won’t be able to answer that question unless you look at the return on investment (ROI) of rental property investments in the Seattle housing market 2020. Mashvisor’s investment property calculator analyzed rental property performance across the Seattle housing market– here is the key data:Median Property Price: $712,501Price per Square Foot: $537Average Days on Market: 67Monthly Traditional Rental Income: $2,337Traditional Cash on Cash Return: 1%Monthly Airbnb Rental Income: $2,902Airbnb Cash on Cash Return: 1.5%Airbnb Occupancy Rate: 61%Based on these figures alone, you might not think the Seattle housing market forecast is too positive. A Seattle property investment in the right part of the market, however, will prove to be quite profitable in 2020.5) Seattle Airbnb Laws Add Some RestrictionThe Seattle housing market forecast 2020 includes the same Airbnb regulations which took effect this year. While these regulations were passed in 2017, they weren’t implemented until 2019. The basic premise of the regulations set on Airbnb Seattle is that property owners now face limits on how many units they can rent out and they are required to get an extra license to operate their real estate business.Is Airbnb a good investment in Seattle despite these restrictions? It’s important to cover the legal aspect of rental property in the Seattle housing market forecast as Airbnb laws can really restrict the ease of operation, the level of rental income generated, or your Airbnb occupancy rate, ultimately affecting overall rental property profitability. While there are Airbnb laws in the Seattle housing market, they aren’t as restrictive as other markets (like Las Vegas Airbnb laws where non-owner occupied rentals are banned).Planning on purchasing an Airbnb investment property? You can rent out your home (primary residence) plus one additional unit. Current short-term rental operators in Seattle have until Dec 15, 2019 to obtain their short-term rental operator’s license. Rental Registration Inspection Ordinance (RRIO) registration is also required for all rental properties that are not the primary residence. Find a Profitable Airbnb Investment PropertyRelated: Airbnb Data Analysis Is the Key to a Profitable Short Term Rental6) Certain Seattle Neighborhoods Will Be Stronger Than OthersThe Seattle housing market has got over 100 constituent neighborhoods. Of course, different parts of the market will project a different rate of return for rental property investments. Some will have good cash on cash return, others will have high Airbnb occupancy rate, some might have both or neither. You won’t know unless you conduct a real estate market analysis. To help you out, using our investment property calculator again, we’ve pulled some data on the neighborhoods expected to perform best in the Seattle housing market 2020. Here are the best neighborhoods for Airbnb vs long-term rental performance:South Park (for Airbnb Rental Property)Median Property Price: $363,661Price per Square Foot: $281Average Days on Market: 74Monthly Airbnb Rental Income: $5,847Airbnb Cash on Cash Return: 12.8%Airbnb Occupancy Rate: 69%Highland Park (for Traditional Rental Property)Median Property Price: $445,000Price per Square Foot: $321Average Days on Market: 151Monthly Traditional Rental Income: $2,795Traditional Cash on Cash Return: 3.2%Cedar Park (for Airbnb Rental Property)Median Property Price: $514,000Price per Square Foot: $381Average Days on Market: 69Monthly Airbnb Rental Income: $4,597Airbnb Cash on Cash Return: 5.1%Airbnb Occupancy Rate: 45%Loyal Heights (for Traditional Rental Property)Median Property Price: $341,252Price per Square Foot: $421Average Days on Market: 47Monthly Traditional Rental Income: $1,843Traditional Cash on Cash Return: 2.0%Garfield (for Airbnb Rental Property)Median Property Price: $749,000Price per Square Foot: $471Average Days on Market: 18Monthly Airbnb Rental Income: $5,694Airbnb Cash on Cash Return: 3.9%Airbnb Occupancy Rate: 63%Do you want to start searching for Seattle investment property for a 2020 investment? Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes!Related: 2 Real Estate Resources You Need to Start Using Now Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsNeighborhoodSeattle WATraditional 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post 3 Tools You Need to Find Cash Flow Properties for Sale Next Post 20 Best Real Estate Lead Generation Ideas for 2020 Related Posts Easter – The Best Time of Year to Buy a House for Real Estate Investing Thinking of Buying an Investment Property in 2018? Don’t Wait Any Longer How Realtor Commissions Are Changing: MLS Dominance and Its Problems Real Estate Question: What Is a Seller’s Market? 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