Our speaker on March 4, 2021, was our member, Tim Lenihan, talking about the Seattle real estate market. Tim is a Partner with Modernden and a long-time University Sunrise Rotarian. Modernden was created by Tim Lenihan and Mike Ellis in 2014 to build homes that are both classic and timeless, with the best building quality possible. For more information, contact Tim at tim@modernden.com or www.modernden.com
The City of Seattle is growing at one of the fastest paces in the entire nation and it’s not slowing down.
Speaker Notes provided by Isaac McNally:
-Tim created his own Real Estate brokerage this past year, Modern Den, mostly high end residential homes
-Seattle apartment rates have decreased about 25% this past year through Covid, yet increased demand for housing
-Real Estate prices are increasing 15-20% on most houses hitting the market. This is anticipated to continue for next 2-3 years
-Tech market increasing Seattle population, large migration from California
-Low interest rates increasing demand for Seattle housing, thus increasing housing pricing
-Covid separating the “haves” from “have nots” (restaurant businesses taking a big hit), mortgage forbearances increased at beginning of Covid but have decreased since. Banks are much more prepared for economic hits than in 2010.
-ADU, Additional Dwelling Units are increasing within the city, increasing population density. Laws now allow for three houses on one single family lot.
-Misnomer that everyone is leaving the city
-Growth in suburban cities will temper the pace of growth in Seattle.
-With many big companies leaving Seattle for Bellevue etc., door may be opening for small companies and startups to exist once again in downtown Seattle
-Parking issues arising with population density and with DADU and ADU
-Zillow and Redfin estimate home values based upon trends, but are not always accurate
-Condo market lags behind the residential market. Currently an upswing for Condo market
-Seattle city council seems to have neglected many important issues in heightened focus of social equity issues. Parks have been neglected. Police are only partially staffed in the city because many have left.
-”Everyone will be working from home now” seems to be a misnomer. There will continue to be a demand for commercial space downtown, though reduced the next couple of years.
-Annual median income in Seattle around $108k and increasing.
-Everret is anticipated to see biggest growth in next ten years
-MHA tax has accumulated much money toward the city’s housing affordability, but it’s unclear how the city is using it. The city has not had success in attempt to solve homelessness issue
-Property taxes are increasing with home values