Nicholas Cozza of Spokane County is a real estate agent in Washington State and a frequent contributor to publications covering the housing market. In the following article Nick Cozza discusses why the Northwest portion of the country is still seeing such a real estate boom.
Need evidence of the hotter-than-hot real estate market in the Pacific Northwest? Look no further than Seattle says Nicholas Cozza of Spokane County.
In many ways, the housing market in Seattle, the Pacific Northwest’s largest city and metropolitan area, mirrors the market in the United States. Real estate inventory is low — very, very low — while sales are at all-time highs.
And the median home price in King County in April, where Seattle is located? A whopping $880,000, notes Nick Cozza of Spokane County, up over 17% compared to 2021. In Pierce County, the median house sale was $535,.000, up nearly 16% compared to 2021. In Kitsap County, the median home went for $525,000, up 21.3% compared to last year.
Single-family home prices not including condos in King County also significantly increased 20% from just a year ago, with the average price going from $830,000 to $995,000. Snohomish County saw the largest growth in home prices, up 27% over 2021, the largest in the Puget Sound region.
And the medium selling price of single-family homes in Seattle in April was $1,019,950, a rise of over 16.5%.
It’s not all bad news for home buyers, though. Nicholas Cozza of Spokane County reports that the Northwest Multiple Listing Service shows that the Puget Sound housing market has cooled down a bit to a level closer to the housing market prior to the COVID-19 pandemic.
Inventory is rising a bit, and an increase in inflation and interest rates may also make real estate just a bit more affordable throughout the Pacific Northwest. Interest rates are projected to hit 4% by the end of 2022, up from 3.1% in 2021.
Nick Cozza of Spokane County says the number of listings rose this spring throughout the Puget Sound area as well. In February new listings were up 45.5% in King County compared to January. New listings were also up 39.3% in Pierce County and up 36.3% in Snohomish County.
In Kitsap County, new listings rose 21.7%. But demand is still much higher than supply. In King County, it would have taken just two weeks to sell through all the area’s available homes this spring.
Lynnwood Showcases Pacific Northwest Growth
Nick Cozza of Spokane County explains that not long ago, Lynwood, Washington, was a sleepy suburb of Seattle.
That was before the strip malls and the high rises that are accompanying a new light-rail station. And before the Puget Sound region grew to over 1 million residents.
With the light-rail station due to be completed in 2024, there are thousands of apartments being built in Lynnwood, north of Seattle. Its population is expected to increase quickly by many thousands.
While the town’s city council debates the housing situation, other residents are welcoming it and the potential of the area to become a satellite suburb for those in the tech industry.
Real estate developers have been reportedly busy looking for opportunities throughout Lynwood, including the 1.28 acres owned by the Nguyen family who set up Anna’s Home Furnishings nearly 25 years ago. Nicholas Cozza of Spokane County says the family is still deciding their next move, but they agree on one thing: they’re sitting on a real estate gold mine.
Portland Housing Project Garners $95.2 Million Capitalization
Nicholas Cozza of Spokane reports that over $95 million in construction financing and joint venture equity has been arranged by JLL Capital Markets for a new mixed-use development in Portland, Oregon.
Slabtown Square will be a seven-story 200-unit project with ground-floor retail. The residential portion will feature studio, one- and two-bedroom apartments (average size: 670 square feet) with high-end finishes like stainless steel appliances and quartz countertops.
It will also boast a yoga studio, clubhouse, rooftop deck, fitness city, and space for 230 bicycle parking units.
The project’s ground-floor retail will include over 11,500 square feet of space. Nick Cozza says the project will be in the middle of a newly developed 16,000-square-foot public square and adjacent to a public park.
Slabtown Square is in Portland’s Slabtown neighborhood, within walking distance from popular retail areas of NW 21st and NW 23rd avenues. Nicholas Cozza of Spokane County says the JLL equity placement team reported heavy interest from investors as indicative of Portland’s strong retail and residential market.
Sun Mountain Lodge Acquired by GEM
GEM Real Estate Partners has purchased Sun Mountain Lodge, Washington State’s only luxury ranch and one of the largest cross-country ski resorts in North America.
Nicholas Cozza of Spokane County says the acquisition fattens GEM Real Estate Partners’ luxury real estate portfolio in the Pacific Northwest, which includes downtown Seattle’s Kimpton Palladian Hotel and a new boutique hotel, the South Lake Union, currently being developed.
Sun Mountain Lodge in Winthrop, Washington, offers everything from cross-country skiing to ice skating, hockey, snowmobiling, and snowshoeing. It also attracts hikers, mountain bikers, and horseback riders in warmer months.
The resort includes 118 lakefront cabins and guest rooms, a gourmet restaurant, a full spa, and banquet facilities with views of the Methow Valley.