Tech Companies Influence on the Eastside Housing Market

After a temperamental 2019, the 2020 housing market in the greater Seattle area is off to a very active start. Pundits had predicted that January would be the new April for home buyers and they were absolutely correct.

As you can see her from the statistics pulled from the Northwest Multiple Listing Service, the median sales price is up 5.6% year over year to $644,000

Meanwhile, Months Supply of Inventory is down 53% to under 1 full month. While this trend is impacting all areas in our region, the East Side in particular is poised for major growth and activity. As you can see from this data, the Eastside, as well is experiencing a decrease in available inventory, and while demand increases, we are sure set for a very active and robust selling season.

Though this month’s numbers aren’t in, I am already seeing an increase in tour and open house activity and multiple offers escalations that are resulting in final prices well above the initial asking. 2018 really set the stage for 2019. There were broad geopolitical concerns that were impacting the stock market, interest rates were starting to rise, and there was much worry that we were headed towards another housing bubble. Another factor that may have contributed to the deceleration we experienced in the last year, was Amazon’s announcement to seek a second headquarters outside of the Greater Seattle area. But as you can see from this recent Puget Sound Business Journal headline, prices in the Seattle-area housing market are accelerating. 

On a broader level much has to do with our area being a tech haven for tech employers and the highly-paid talent they attract.  As we’ve since learned, Amazon’s plans for rapid growth in Virginia have been cut nearly in half, while locally in Bellevue, they’re adding 15,000 jobs. Bellevue has long been a highly desirable area to live, given its bustling downtown, its variety of shops and restaurants, diversity of neighborhoods and highly coveted schools. The location is also a commuter’s dream with easy access to all major freeways providing reasonable commute time to any of the area’s major employers. 

Speaking of major employers, it’s not just Amazon that is contributing to the rapid growth and the housing demand on the Eastside. Other employers, including Microsoft, Google and Facebook are continuing to expand their own footprint in areas including Bellevue, Redmond, and Kirkland.

If you’re a tech employee, currently renting in or considering relocating to the area and want to become a homeowner, the time to act is now. Demand is only increasing as more high-paying jobs become available to tech employees. Meanwhile, supply continues to be a challenge, especially in areas near major employers. 

Depending on your price point and lifestyle priorities, I can help you examine a variety of neighborhoods, discuss current market dynamics as well as strategies for success to help you find the perfect place to call home.

So if you’re looking to buy or sell in the greater Seattle area, reach out today. It would be my privilege to help you.

Gina Madeya | 425-495-0926 | [email protected]