Last April, Spokane, Washington, was among the top three hottest housing markets in the nation. The upward movement was expected to continue into 2020. The Spokane real estate market has seen inventory reduced as more people have migrated to the northwestern area of the United States.
Now in a seller’s market, homebuyers seeking a good deal will find limited inventory to choose from.
In climates like this, house flipping opportunities are prime as people turn to less sought after homes and neighborhoods. Not only does home renovations increase the number of homes available, but it also breathes life back into once vibrant communities.
Are you considering getting into the real estate market in Spokane, Washington? Keep reading for nine reasons why now is a perfect time.
Why is the Spokane Real Estate Market So Hot?
With the inception of virtual work opportunities, people are finding it easier to pack-up and move to more cities that suit their taste. Spokane is a city that is just the right size and provides the amenities that many Millennials are looking for. More important is its rapidly growing urban job market.
Many of the people migrating there are coming from larger Pacific Northwest metro areas in the state. Also, people leaving nearby states like Oregon and California are making Spokane their new home.
1. There is a Demand for Housing
The population in Spokane is expected to climb over the next two decades. This will keep the Spokane housing market leaning favorably towards sellers. It also means that housing prices will continue to rise as demand becomes greater.
Getting into house flipping business now makes more sense than waiting a few years. As Millennials get older and start to marry and have children, there is a shift from only wanting to rent, to one of a buyer’s mindset.
2. It Can Increase the Demand for Housing in a Neighborhood
Some people believe the time to get into the Spokane real estate market has passed because premium homes are depleted. The truth is, this is the perfect time for property investors to go into less desirable areas and buy inventory.
Knowing how to flip a house in an area with lower house values can turn that neighborhood around and turn it into prime real estate. Where people go businesses follow. A niche community has its own charm that will attract the right buyers.
3. Getting Funding Will Be Easier
When an area is ripe for redevelopment as the Spokane real estate market is, finding investors becomes easier. In the house flipping business, people look to private investors to fund their projects. In a seller’s market, hard money lenders are more willing to take a chance on these types of projects.
4. Demographic Shifts Work in Your Favor
Spokane real estate market trends will work in your favor. The current trend shows that younger people are moving to the area in record numbers. This means their taste in homes can shift the need for a certain type of property.
If you know what buyers are looking for, you can be one step ahead of the game in providing the amenities and look they are searching for.
5. The After Repair Value Supports It
Spokane’s median home price is steadily increasing due to high demand. If you are successful at getting a house to flip at a reasonable price, the after repair value (APV) will more than pay for the investment.
APV is greater on homes that have been abandoned or have sat on the market for a long time. With these properties, you can upgrade appliances, flooring, and windows, to justify a higher resale price.
6. You Can Rent the Property
Most people in the house flipping business are in to sell and sell quickly. Sometimes things don’t happen as fast as we like. In the Spokane housing market, renting is a viable short-term solution.
There are always people willing to rent. If the property is still on the market after three or more months it is a viable option. Plus, you’ll have the money to pay on any loans you secured to complete the project.
Sometimes holding out works in your favor. If current trends continue you may receive a greater return a year from now.
7. You’ll Help the Economy
In a growing market, there are always opportunities to help the economy. House flipping puts people to work. No one has mastered how to flip a house alone.
When you go into this business you are creating work for contractors in the area. They in-turn hire craftsmen and laborers to get the work done. Other people that benefit include local governments, home improvement and design stores, and other businesses nearby.
8. It Increases Your Knowledge and Experience
For those new to house flipping, moving into an area experiencing rapid growth will allow you to learn more about the housing market. If you are working on more than one project, you’ll gain valuable knowledge on the flipping industry.
We see shows on television that make it seems as if flipping properties is quick and easy. In reality, you have to find the house, negotiate the price, close, find subcontractors, and then market the property to get the sell.
No two properties will garner the exact same experience, so there is always a chance to grow.
9. It’s Rewarding
At the end of the day, anything you enjoy doing, you’ll put your heart and soul into. Providing renovated properties for a first-time homeowner or an expanding family will make you have pride in the work you do.
House flipping is an honest profession that brings huge benefits to any flourishing housing market.
Are You Ready to Start House Flipping?
The Spokane real estate market is in need of houses to fulfill a demand. If you are in the house flipping business this location has the potential to be quite lucrative.
Do you want to learn more about available properties? Click here and someone from our team can help you find everything from commercial to residential properties.