Home Selling in 98199>Question Details

Foo, Other/Just Looking in Seattle, WA

Will Magnolia (in Seattle, zip 98199) townhouse prices continue to increase in 2014?

Asked by Foo, Seattle, WA Tue Jul 2, 2013

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A recent article named Lawton Park (an area of Magnolia) the hottest neighborhood in the US! It's pretty laughable, but I have seen an increased awareness of this neighborhood with a younger demographic recently. Of course this same age group is also a target demographic of townhouse builders.

Magnolia is close in to downtown, has great parks and is a tight knit community. It has so many things going for it, and yet is a bit separate, that's why it's known as the Mayberry of Seattle. Currently homes are selling quickly here. One would imagine as the Seattle Market goes, so will Magnolia.
1 vote Thank Flag Link Tue Jul 2, 2013
On the topic of past predictions, one of the ones I like to cite to is the October, 2002 edition of Money Magazine. Citing Economy.com, they predicted Seattle, San Francisco and Detroit as being the cities "ready to burst." One out of three ain't bad, right?
1 vote Thank Flag Link Tue Jul 2, 2013
I don't see a reason why not. Of course the rate of appreciation we're experiencing right now is unsustainable, but it's due to lack of inventory. Once more homes hit the market everything will stabilize more naturally, but there's nothing to suggest a decrease in values is on it's way. Prices should continue to climb, but just at a more natural rate.

Perhaps the bigger question (assuming you're seeking financing) is what will mortgage interest rates look like a year from now? We've seen a large jump within the past 2 months and that, perhaps more so than home prices, might be the reason buyers are left on the sidelines.
1 vote Thank Flag Link Tue Jul 2, 2013
Thanks Danny. I own a 2008-built townhouse and my mortgage burden is light (interest rate ~3.4%). I am wondering whether I should sell now or wait until Spring 2014. Yeah, my concern is home price may drop due to interest increase. I also thought about renting, but renting a relatively new townhome doesn't seem to be a very good idea per my rough calculation. What do you think?
Flag Tue Jul 2, 2013
No one knows for sure. But the answer is almost certainly yes. But if you are considering selling, why take the risk? So many things are beyond our control.

I am pending on a Magnolia listing. We received multiple offers and my sellers are thrilled with the results. It remains an excellent time to list your home. I would be delighted to consult with you at no obligation to give you an opinion on what you could expect to receive if you were to list your townhouse now.
0 votes Thank Flag Link Tue Oct 1, 2013
Foo,
Magnolia is a great neighborhood which has always been popular. As long as the general market does well, I suspect Magnolia will as well. No one can foresee the future, but we can make reasonable projections. I would say, if you like Magnolia and plan to live in your next house for 3-5 years or more, you will do as well as anyone.
0 votes Thank Flag Link Tue Jul 2, 2013
The current market although strong is mostly due to the inventory shortage. Our team is predicting a tapering off going into the turn and stabilization with predictable gains through first Q next year and beyond. I agree with Ray we are in a blessed local economic hub like few other major cities. Add that to the topography on the Seattle metro area in general land value isn't going to go down that's for sure.
0 votes Thank Flag Link Tue Jul 2, 2013
I think they will as well, but we do not have a crystal ball.
0 votes Thank Flag Link Tue Jul 2, 2013
Over time, all real estate appreciates. There are a number of 'experts' who are forecasting increasing property values through the end of 2013 and beyond. In fact, Forbes Magazine says the Seattle real estate market will continue to improve through at least 2017. Of course, those forecasts are contingent upon things like Wall Street's good (or bad) behavior and a new war in a foreign country, and interest rates. Remember this, 70% of the U.S. economy is driven by spending. Consumers spend when they feel confident. So long as consumers feel confident about the future, they'll spend money. The local real estate market is among the top five in the nation. Unemployment is low here. Seattle is poised for growth. The local real estate market should continue to improve.....but there are no guarantees.
0 votes Thank Flag Link Tue Jul 2, 2013
It's impossible to predict what real estate prices will do in the future. If someone was close in a prior prediction, that was just due to luck.
0 votes Thank Flag Link Tue Jul 2, 2013
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