How To Find Hot Markets For Real Estate Investment in WA in 2025

Published:
January 14, 2020
Last updated:
December 16, 2024
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In This Article

Location is perhaps the most important factor to consider when investing in real estate. In this article, we’ll go over the hottest real estate market in WA that you may want to consider investing in to maximize your ROI in 2025.

Real estate investors who want to build up a strong investment portfolio always keep an eye out for hot markets, which gives them a chance to pick up properties that add to their portfolio value.

A word of caution about hot markets is that if you learn about them after they are already hot, you may have missed much of the run-up that made them hot.

Clever real estate investors try to anticipate markets that will heat up before they do, so they can buy properties in advance of increasing values. Selling properties in a hot market is how they capture profits.

The Hot Markets in WA

Where are the hottest markets in Washington state? Before investing your hard-earned capital in this state, it’s important to first take a look at all the cities and areas that are showing signs of heating up in order to make sure that you get the biggest return on investment. 

In WA, the hottest housing markets right now include the following:

Tacoma

The median home price in Tacoma is $478,906, with values having risen 3.1% over the past year.

Federal Way

The median home value in Federal Way is $582,089, with values having risen 4.3% over the past year.

Lakewood

The median home value in Lakewood is $502,100, with values having risen 4.3% over the past year.

Kent

The median home value in Kent is $635,572, with values having risen 4.4% over the past year.

Redmond

The median home value in Redmond is $1,358,195, with values having risen 9.5% over the past year.

Kirkland

The median home value in Kirkland is $1,226,048, with values having risen 9.4% over the past year.

Bothell

The median home value in Bothell is $1,043,118, with values having risen 9.2% over the past year.

Bellevue

The median home value in Bellevue is $1,446,915, with values having increased 9.4% over the past year.

WA  State Mortgage Rates

Hot Pockets In Cooler Markets

One way to find great opportunities is to know your local housing market very well and keep an eye out for areas that are on the up-and-up. Look for fixer-uppers in good areas that just need to be updated in order to bring them up to snuff. Giving properties like these a little attention can really boost their values and give you the chance to add plenty of equity quickly that can boost your ROI.

Also, consider looking in areas that are close to high-priced areas so you can take advantage of the desirability of the nearby neighborhoods without having to pay the hefty price tag.

Further, look for soft barriers that can be easily crossed over, such as a neighborhood that is improving, which is adjacent to another block that has already been improved. Hard barriers, however, such as a freeway or a river, can make it more of a challenge for an improving area trend to pass across.

Thinking of Investing in Washington Real Estate?

There are a number of factors that go into finding the right investment property, and one of them is finding an ideal location where you can be comfortable knowing that property values will at least maintain their strength or even appreciate in the near future. Finding a hot housing market or a hot pocket comes from looking at a few potential growth areas and watching them for a while before making your move.

One common and tried-and-true tactic is to buy early when prices are still low, hold onto the property and rent it out for a while, and then sell later on after the market heats up.

If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.

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Reach Out to Sammamish Mortgage

If you’d like to learn more about the home buying process, mortgage rates, mortgage programs, or other related topics, don’t hesitate to reach out to the professionals at Sammamish Mortgage today! Sammamish Mortgage is a family-owned mortgage company delivering mortgage loans to customers in the Pacific Northwest at competitive interest rates since 1992. States include WA, OR, CO, CA & ID. Contact us to learn more, you can also View Rates, get a Rate Quote, or Apply Now using our new online automated mortgage application system!

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