Or more specifically asked for the purposes of this blog; is 2018 a good year to purchase a residential investment property in Pierce or South King County, Washington State?
The answer can depend on your goal and investment strategy. Generally, there are two types of real estate investment strategies for residential properties. The first is the “fix and flip” investor. This investor is looking for a home that needs repairs; so, they can buy it, fix it up and sell it for a profit. For these investors the outlook for 2018 looks good. Most predictions are betting prices will continue to rise nationally in 2018. [see inman article about 2018 outlook] In our area, Seattle is predicted to continue to rise [see Seattle times article about RE outlook in Seattle for 2018] which will force more buyers to consider South King and Pierce county for affordability.
The second investment strategy is known as “buy and hold”. This is an investor who buys property to rent it out. This investor is looking for long term appreciation, as well as monthly cash flow; and in some cases, tax advantages from owning real estate. For this type of investor, the outlook for 2018 also looks favorable for purchasing. As already stated the market looks strong for the foreseeable future [see Zillow values predictions for Tacoma in 2018] and interest rates are still relatively very low; this gives investors more purchasing power and lower payments. Interest rates are expected to rise slightly, meaning that buyers who purchase sooner than later, will most likely have better rates and so lower payments. [see Kiplingeer prediction on interest rates for 2018]. Rents have risen sharply recently and are expected to continue to rise, albeit at a slower rate than over the last 12 months [see TNT article about rental rates in Tacoma]. Therefore, it is my opinion that the market is currently favorable to investment purchases in residential real estate.
This article is concerning Pierce and South King County Washington and are only estimates of the outlook for the residential real estate market.
