Seattle Real Estate Market Analysis

Seattle real estate prices are among the most expensive in the U.S. It is therefore natural to see that property appreciation has been significant over the years. Since the beginning of 2000, Seattle properties have experienced a total appreciation of 169.55% according to NeighborhoodScout, which is an average annual home appreciation rate of 5.29%. 

However, Zillow reports that Seattle property values have declined by 4.5% over the past year and are predicted to fall 3.8% within the next year. It is believed that the Seattle real estate market is cooling down due to a decrease in hiring at Amazon’s Seattle headquarters in recent months. In fact, Seattle housing prices rose to record levels in recent years, fueled largely by the success of Amazon. Since that peak, however, they have started to cool down. Now, real estate properties are selling at the market price, which is a good sign for future Seattle real estate investors. 

The Seattle housing market is currently a buyer’s market as there are more homes for sale on the market than people looking to buy. It is possible that the Seattle housing market cool down is just a sign that buyers reached their limit after years of incessant sales. As a real estate investor, you should take advantage of this state and buy an investment property in Seattle.

The last few decades have seen the “Emerald City” blooming and turning into a top destination for people from all around the world. With it being such a tourist-friendly location, Seattle short-term rental properties are a great real estate investment. The monthly Airbnb rental income reported in 2018 for the city of Seattle was $3,225 on average.  

The City of Seattle has enacted a number of regulations governing short-term rental businesses in the last couple of years. All Airbnb Seattle investors planning on hosting short-term stays (less than 30 nights at a time) must obtain a Short-Term Rental Operator’s Licence through the Department of Finance and Administrative Services (FAS), in addition to a Business Licence Tax Certificate.  This licence costs $75 per unit and must be renewed each year. Airbnb Seattle investors are allowed to operate up to two dwelling units they own, one of which must be their primary residence. If the Airbnb listing is a secondary home (non-owner occupied), hosts are required to register the rental property with the city’s Rental Registration and Inspection Ordinance Program, for a fee of $70. 

There is however an exception to this particular Airbnb regulation: Hosts already operating a short-term rental in the Downtown Urban Center will not be subject to any limits on the number of units they can rent out.