About Seattle's South Lake Union

Rent prices for housing and office space are expected to rise in 2012, as demand remains high. The lack of building of residential and commercial spaces in the past five years is beginning to put a strain on available space.

Seattle residents know the various "holes in the ground" around the city that were slated at one point to be new condo and apartment buildings. While many of those projects have been shuttered, some have been built up with other uses. In general, the availability of rental properties has continued to shrink yearly since the peak of the Seattle real estate market in the summer of 2007.

At the same time, home affordability will likely encourage many who feel squeezed-out by competition and out-priced to look into buying Seattle homes.

From Realtor Magazine: According to the consumer price index, rents have risent 2.5% in one year, while home prices in most of the country have dropped. According to Trulia, in 74 percent of U.S. cities, owning a home is more affordable than renting.

Amazon's effect on Seattle's South Lake Union neighborhood has been well-documented. From businesses and apartments to a bevy of new restaurants, the neighborhood has taken on an entirely new look in under a decade. Much of South Lake Union has retrofitted its outward image to attract the burgeoning crop of Amazon employees.

The real estate market for South Lake Union condos has been affected greatly by the influx of Amazon's employees. There have been very few home sales in the past few months, but not for the reasons that sales lag in other markets. In South Lake Union, the few condos that do come on the market sell quickly, leaving a vacuum of available properties.

[Parts of South Lake Union are sometimes referred to as Cascade, a historic neighborhood name. The SLU neighborhood boundaries aren't officially defined, but generally, we use Aurora Ave to the West, Denny Way to the South, I-5 to the East, and Lake Union to the North. Statistics for South Lake Union condo sales are pulled from within these boundaries.]

Every single condo listed during the past six months under $1 million sold, and most sold quickly. In the past six months, there have only been three condos sold in South Lake Union. The inventory is scarce.

Only one condo on the market in South Lake Union has been listed for more than a month, and that happens to be a full-floor, $2 million condo. For the entire neighborhood, just three condos are available: the other two are at Veer Lofts on 9th Ave N. One is new construction being sold by the developer, and the third is a top-floor resale loft. Neither have been on the market over one month.

Clearly, most of the quality condo inventory in South Lake Union has been scooped up by Amazon employees as it has come on the market. Price stabilization in this neighborhood is certainly only the way. Some of the condos sold here have actually sold at higher prices than when they were originally purchased 2-3 years ago, bucking the downward pricing trend of the rest of the market. Low inventory, strong relocation numbers, and well-qualified buyers have put South Lake Union in position to be one of the first neighborhoods in Seattle to show price increases in 2012.

Sold Condos in South Lake Union, Past Six Months:
Veer Lofts:
MLS # 294360 - 401 9th Ave N #402, Seattle WA 98109 - $275,000
MLS # 250847 - 401 9th Ave N #616, Seattle WA 98109 - $405,000
Art Stable
MLS # 214417 - 516 Yale Ave N #600, Seattle WA 98109 - $1,565,000

Active Condos For Sale in South Lake Union:
Veer Lofts:
MLS # 313635 - 401 9th Ave N #212, Seattle WA 98109 - $289,950
MLS # 316769 - 401 9th Ave N #603, Seattle WA 98109 - $419,000
Art Stable
MLS # 290859 - 516 Yale Ave N #400, Seattle WA 98109 - $1,995,000