Rents Pulling Back

This is news from a few weeks ago that got lost in my holiday shuffle, but worth pointing out, ‘Turning point’ for Seattle rent hikes? Some hot areas see rents drop:

There are strong signs that the price surge in the local rental market peaked in the summer and fall of 2016 and is now in the very beginning stages of a slowdown, according to a report released Monday by Apartment Insights Washington, a leading local rental market surveyor. Rents have even begun to dip compared to a few months ago, with the hottest Seattle and Eastside markets seeing the biggest drop.

This is something important for all the amateur investors out there looking to buy their first investment condo to be aware of. You likely won’t be able to count on the rent increases if we’ve seen over the past few years to continue. This is especially important if you’re stretching in a bidding war to buy a condo and can’t cashflow immediately.

But, the good news, is that maybe this will cause the tide to turn on new apartment development leading developers to switch back to building condo buildings.