Limited Puget Sound Multifamily Choices Equal Pent-Up Demand

Snohomish, Pierce and Kitsap counties all outperformed urban markets in pricing, yet the region’s south-end market performed best, with year-over-year price appreciation, according to a market study released by Dylan Simon and Jerrid Anderson of Kidder Mathews. In fact, now is the best time to sell, says Anderson.

“If you are thinking of selling in the next two to three years, it’s hard to argue there is a better time than now. Limited apartments on the market with pent-up investor demand make 2021 a good year to sell if you plan to sell in the next several years,” he observes.

Sales volume in Snohomish County remained choppy year-over-year, yet pricing remained strong in 2020. This was evidenced by both increasing sales pricing on a per-square-foot basis and low cap rates – indicating continued investor confidence.

Pierce County’s sales volume surpassed all previous years in 2020. Pricing remains strong, with the market maintaining sales volume increases in nearly every year since 2010.

While Kitsap County often receives less attention than other regional markets, it continued a trend of value-growth, marking the second year in a row of the highest value appreciation in all markets. Sales volume remains low, yet continued value increases prove investor demand.

Puget Sound apartment sales slowed, yet healthy fourth-quarter sales and continued low cap rates demonstrate both investor confidence and momentum. This consistent investor demand is evidenced by only nominal changes in cap rates in the past six years and a very strong close to the year.

“Economic fundamentals in the Puget Sound region remained strong in 2020 – with the region’s top employers growing in size and market capitalization. It won’t be long before workers return to the office, investor confidence returns in force and we see apartment pricing begin to accelerate across the region,” concludes Simon.

For comments, questions or concerns, please contact Lisa Brown