Haves and Have Nots in Seattle

98118 is one of the hottest zip codes in Seattle right now. In the last six months, there were 253 residential sales, with an average sales price of $349,950. A year ago, the median home price was $345,000.

Compare this to the trendy Ballard neighborhood, where 314 homes sold in the 98117 zip in the past six months at a median price of $549,450. A year ago, the median home price was $477,500.

There is more than twice the active listing inventory in 98118 (59) than in 98117 (25).

Nothing demonstrates the rising inequality gap between the haves and have nots in the City of Seattle than these two comparisons. While Seattle is becoming increasingly more white, increasingly more affluent, those who can no longer afford the pricey north end neighborhoods are moving to the south. Increasingly, 98118 is seeing that influx of investors and new homebuyers looking for affordability, with proximity to jobs in Seattle city center.

Yet the bulk of the wealth and appreciation are taking place in the north end of the City, where home prices are back to or even above their pre-bubble prices.

For investors, and others looking for working-class neighborhoods in which to invest at more affordable prices, the south end offers some growth opportunities. In the north end, expect the bidding wars to continue, as inventory remains very tight.

Happy Investing!

Free and Clear Property

As a real estate investor, I like to look for properties that have the potential for owner financing. Typically, these are properties that are owned free and clear.

If I get owner financing, I am more likely to buy a house and keep it as a rental, rather than flipping it for quick cash. Owner financing gives me more options for an exit strategy.

I also like to look for properties that are right around the median home price in good neighborhoods, and not on a busy arterial. A three-bedroom, two-bath house is the ideal size. These properties are typically in the highest demand from both buyers and renters. Even better if it comes with owner financing.

So taking a quick look at my favorite Seattle zip code of 98115, the very first house I look at is owned free and clear by an owner who lives out of town in Bellingham, WA. It is a tear-down fixer in Ravenna that has been on the market for 43 days.

The next one in Ravenna, a small two-bedroom, one-bath bungalow is underwater on their mortgage. Maybe they will get the $339,000 that they are asking, but it will cost them at the closing table. I also like to make offers on underwater houses, but more so when they are off-market. That is another whole topic for another blog post.

Let's see if we can find any more free and clear properties. These searches take a bit more work and time, but they are worth it!

Yes, here is a sweet three-bedroom, one-bath Maple Leaf home for under $400,000, that was inherited by the current owner.

And here is a three-bedroom, one-bath home in Bryant, also for less than $400,000, free and clear with an out-of-state owner. He has another one in the same neighborhood listed at $535,000.

Here's one in Maple Leaf that was bought at auction for cash less than a year ago, but just over $400,000 in price.

Here's a 3/2 in Wedgwood that was just reduced in price to $470,000.

So six of the 24 properties for sale in 98115 priced under $700,000 are owned free and clear, making the prospect of seller-financing a possibility.

For a complete list of free and clear properties in your favorite Seattle zip code, please message me privately at HomeLandInvestment@gmail.com.

Happy Investing!