Is Carnation, Washington the next “Hot Spot” in Real Estate?

It’s hard to imagine discussing the next hot market for real estate in these economic conditions, but all indications seems to point that we will be pulling out of this soon, whether it is 3 months or 3 years is a viable question.

Regardless of when the market rebounds, if you are an investor or simply looking to buy real estate with high upside, there are opportunities to take advantage of in a geographical location that hasn’t seen its potential yet.

So why Carnation?

Before the Real Estate market took its nose dive in the Summer/Fall of 2008, Carnation was already poised for a resurgence. In the past few years the City of Carnation has been creating an infrastructure to anticipate its long term growth, the biggest being going live with their sewer system in May of 2008. By implementing a sewer system in their downtown core, it created an opportunity for higher density and additional homes that just weren’t available before. In fact, according to our research, before the sewers went online, there were no available lots to build in downtown Carnation, and only one was ready once the sewers were available. That lot was purchased and a beautiful 2,000 square foot house was built on a nicely manageable 5,000 square foot lot. This was the first new house in downtown Carnation in almost 20 years.

We believe that once the real estate market rebounds and the 15,000 square foot lots and 10,000 square foot lots all around downtown are subdivided, you will start seeing more new quality homes built in the downtown core area, and of that first house on Reitze is any indication, pricing at under $180/square foot for a new home with all the bells and whistles on the Eastside is a tremendous opportunity.

What’s great about downtown Carnation is not only the proximity to Redmond via the new Tolt Bridge, but its small town feel. When I mention Carnation to people, the first reaction is that it is so far out there, but I don’t think many people realize with the new bridge is that you are in downtown Redmond in a matter of minutes, and just as close to Redmond as if you were on the Sammamish plateau.

With that said, I think many people like the idea of raising their families in an urban area, where the new library, elementary school, middle school, local parks, trails, and fishing are all within walking distance. Add in the beginning of a revitalized shopping area and the Tuesday Farmer’s market also within walking distance, and you really have a community that people reminisce about when they hear their grandparents talk about their hometown or you watch old TV shows like the “Andy Griffith Show” or “Leave it to Beaver”. Once families discover they can have that sense of community without living in the suburbs, yet still be relatively close to the action of the larger towns on the Eastside, or even Seattle, we think there will be serious appreciation with land and home values.