Discover North Seattle: February 2008

The Northgate area is a fast-growing neighborhood with great potential.  There is a 14-screen cinema being constructed, along with condominium and apartment complexes, slated to be finished in early 2009.  Also, just south of Northgate Mall is a Metro Park and Ride facility for easy commuting to just about anywhere in Seattle.  And as if that weren't enough, our city's LightRail is planning to build a stop at the Park and Ride by 2009. 

I also just attended the first community meeting at the Northgate Community Center regarding a new 3.73 acre park being planned.  The location of the park will be just behind the Target store, where the concrete slab of the old Metro park and ride now sits.

There will also be aesthetic and pedestrian changes made in addition to the park.  The purchase of the land by the parks department from the transportation department is set to be completed by 2009.

This means Northgate could be a great place to buy property at today's prices.  In a couple of years, your property will be within a stone's throw from a beautiful new park!

Click here if you would like to check out the plans for the new park:

http://www.seattle.gov/parks/maintenance/NorthGateUrbanCenter.htm

North Seattle's Maple Leaf neighborhood has a gem tucked discreetly away from Seattle's pop-coffee culture.  There may be a Starbucks on virtually every corner here in Seattle, but what many people (who don't live here) don't know is that there is quite an alternative coffee movement.  I live here in the Maple Leaf neighborhood in North Seattle and we have a local community coffee house called Cloud City Coffee. 

Cloud City is a great spot within the North Seattle community to hang up your umbrella and grab a nice tall latte.  If you're hungry, you can order anything from a cinnamon roll to the Cloud City Club Sandwich.  Sit back on one of the couches and enjoy the free wireless internet access.

Sometimes the baristas might look a little grumpy, but once you start talking to them you'll realize first impressions aren't worth a dime at the cafe.

My favorite thing about it is the location.  Most coffee shops compete with each other on busy thoroughfares, like Lake City Way or Northgate Way.  But Cloud City is on the corner of 88th and Roosevelt.  Tucked away in a community that loves dog-walking and has a large family park right in the middle of it.

There are some other great small businesses in the Maple Leaf neighborhood that I'd like to write about, but I'll write about those later.

You can learn more about the coffee house here: www.cloudcitycoffee.com

- Jay

Seattle real estate has been an anomaly compared to almost every other market and this, in most cases, is a good thing.  But not everyone is cheering.  The way I see it, the roller-coaster real estate trends have (and will continue to have) a negative impact on the rental community.

Here it is in a nutshell: 

1.)  Seattle real estate booms.

2.)  Renters start getting kicked out of their apartments to make way for condo conversions.

3.)  Newer home buyers purchase said conversions at somewhat inflated prices.

4.)  Many of these purchases are made using interest-only and/or ARM's.

5.)  Now in '07-'08, the clock strikes and the rates adjust to make their mortgage too expensive.

6.)  At the same time, house prices are adjusting downward so they don't have enough equity to refinance.

7.)  Now we (along with the rest of the nation) have a record number of foreclosures.

So how does this affect the renters?

The supply of rental units has been greatly reduced because they're all condos now.  And with so many condo owners foreclosing, where do you think these former owners will go?  Exactly, straight into the rental market.

So my prediction is that there will be a lot more renters our there, but a lot fewer rental units available.  And what does the law of supply and demand create?  Higher rental rates.

Hopefully projects like ACORN, who have recently struck a nationwide deal with Countrywide bank to help owners at risk of foreclosure, will stem the tide of former owners rushing into the rental market.

These issues, along with a low interest rate, might make an investor's eyes sparkle ever so slightly.  Obviously flipping a house right now is far more risky than it used to be, so if an investor knew the effect of the Seattle real estate market on the rental market, they might start investing in homes and apartment buildings for the purpose of renting.  The number of Seattle homes for sale is so high right now that the prices continue to favor a buyer's market, which means the investors aren't far off.  In a year or so there will be more rentals available and the market will again correct itself.

Just my opinion.  :-)