How to Find Hot Markets for Real Estate Investment in Washington State
Real estate is a great way to build your perpetual net worth with assets that hold and increase value over time. Yet much of your success will hinge on your ability to see the signs of markets heating up before they become truly hot– you’ll benefit from a lower purchase price and see the most significant jump in valuation as the rest of the area catches. But inaccurate predictions or entering a market that’s already filling quickly can significantly reduce or void your real estate investment. So we’ll cover some signals of profitable real estate markets and some high performers in Washington state.
Getting the most out of your real estate investment has much to do with timing– accurately predicting which markets are about to pick up in value or even micro markets heating up in an otherwise cool zone.
So what signs can indicate it’s time to move on your perspective property? Consider the following signals as you search:
Significant drops in property valuation in historically popular markets
Consistently rising rental rates or shifts towards higher renting demands
Comparative strength of the local economy compared to national averages
Top Investment Opportunities in Washington
Due to its impressive population growth alone, Washington is a great place to build up a real estate investment portfolio. The total Washington population increase over the last ten years was 11.17% compared to 6.23% nationally.
This influx of national migrants to Washington has fueled a booming economy and real estate market, with the median home valuation for the last decade at $311,700 compared to a national median of $204,900. In addition, median rent rates in Washington are currently $1,194, the US median being $1,023.
Of course, not all local real estate markets are created equal. Here are some of the current hottest Washington markets:
The median home value in Bellevue is $1,321,493, with values decreasing 21.5% over the last 12 months. The median rental price for a two-bedroom space is $2,975, ranging from $1,750 to $3,806.
Redmond’s median home value is $1,261,835, with a 26.4% decrease in listing price over the last year. The average two-bedroom rental is $2,600, but the area is sensitive to amenities. So the more you offer, the higher rent you can expect to list successfully.
The median home value is $1,075,986, with a 21.6% decrease in valuations last year. Rental prices average $2,677 but cover a wide range. The low-end rates are about $1,600, but the high-end reaches just over $4,000 monthly.
Spokane averages a lower monthly rent, with a median of $998 and an average of $1,125 for a two-bedroom unit. So the highest ROI investment opportunities are typically in multi-dwelling spaces like an apartment buildings.
The median home price is $473,206, rising 22.1% last year. This area has lower rent prices, with two-bedroom rentals averaging $1,705. However, properties closer to the water tend to have a higher rent average.
Want Help Finding the Right Market Opportunities?
Partnering with seasoned local real estate agents can help you have much more confidence in navigating the nuances of your target region. At UNCW, we pride ourselves in offering our expertise to help investors navigate heating and cooling markets to get the best portfolio properties. Contact us today for a consultation!
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