2020 Economic Summit Summary
The strength of Seattle’s pricing is really starting to show its effects in neighboring submarkets. This is great news for seller’s in those neighboring communities. Of the strongest submarket, Amazon is pushing Seattle’s Eastside markets into overdrive. The technology industry is bringing more and more jobs to the eastside. With more jobs, come more families and they all need housing. In fact, the Puget Sound Region is setting new records for high employment.
Historically, we’ve seen King County as the leader in prices in Washington State, followed by Snohomish and Pierce County. Generally, the other counties trail far behind. However, 2019 showed significant increases in all surrounding counties (not just Snohomish and Pierce) including Kitsap, Skagit and Thurston.
Overall, the Puget Sound Region real estate market looks to remain strong through 2020. According to James Young, of the Runstad Department of Real Estate, the statewide median home price in 2019 was $406,000. King county’s median price came in at $626,700 and Snohomish County’s median price was $489,000.
Imagine a closed umbrella as a representation of real estate values. When you hold it upright, Seattle is at the top of the peak for prices in the Puget Sound region. It has been this way for years and will continue in 2020. Imagine the outlying areas values as along the edges of the umbrella, that’s a pretty steep decline in value outside of Seattle. Not to mention, the further away you get, the lower the values. Now imagine that umbrella opened. Seattle remains the highest peak. However, the values of those outer areas is much closer to that of Seattle’s. The further out you go, the less drop off in values you will likely see in 2020.
As projected, the number of jobs in Seattle’s metro area, are likely to slow down. With that said, from 2020-2024 it is expected that Seattle will add 30,000 more jobs. There are currently just over 20,000 apartments in construction in King, Pierce and Snohomish counties. On the eastside, Amazon’s Bellevue campus is 80% of the size of the new HQ2 in Virginia. Additionally, Bellevue is expected to add 18,000 jobs from 2020-2024. It looks like there will be more commuters on our highways!
Seattle is clearly the strongest market in the state. Snohomish county has a firm grasp on second place and there are several developing submarkets throughout the south Puget sound region expected to make significant gains in 2020.
-Christen Cripe, Thompson Carol Real Estate