Over the past few years we have watched people flock to the Seattle area in record-breaking numbers. Most have attributed this rapid growth to the tech boom, which has certainly played a huge role in tech employees’ eagerness to relocate to the Puget Sound. Last week The Seattle Times released an article that discussed more global circumstances that are enticing an increasing number of foreign buyers to move to the Seattle area.
Previously, when Chinese buyers and investors wanted to purchase properties in the Pacific Northwest they focused on British Columbia. That changed when our neighbors to the north enacted a 15 percent tax on foreign buyers in August. Some Canadian officials justified the tax saying international buyers price out longtime residents and often leave investment homes empty, reducing the overall housing stock and making prices soar more than 30 percent in a year. Understandably, the tax deterred Chinese buyers and encouraged them to redirect their attention to the Seattle area.
While our housing costs have been soaring over the last few years, they still remain far lower and more inviting than other West Coast hubs. Additionally, the Seattle area offers strong lifestyle “fundamentals” that appeal to foreign investors. Some are obvious incentives, like our strong economy and lack of income tax. Others include clean air and access to water, lifestyle and travel opportunities, investment potential, and most importantly education.
According to the National Association of Realtors, Chinese money now accounts for about 55 percent of all homes purchased by foreign investors in Washington. When you add this to our healthy economy, you get a huge interest in the Seattle area. We’re seeing the boost in Seattle as well as other neighborhoods on the Eastside and other areas of King County. Prices have been rising steadily which is great news for sellers who are excited by the prospect of getting an all-cash offer with no contingencies from willing investors.
Think you might be ready to sell and take advantage of our booming market? We can market your property to reach the best buyer and present you with your ideal offer. Let’s get in touch!