Lynnwood, located at the southern end of Snohomish County, is known as a middle-class residential area within the Seattle metropolitan area, but looking at the neighboring towns tells a different story. From my long-term observation of the local market, it is clear that Woodway, Edmonds, and Mill Creek surrounding Lynnwood have established themselves as some of the most desirable residential areas in northern Washington.

The first place that stands out is Woodway. This neighborhood, perched on cliffs overlooking Puget Sound, primarily consists of single-family homes on large lots of at least one acre, with median home prices well over $2 million. Some waterfront mansions are traded in the $3 million to $5 million range. The combination of wooded private properties, designs that prioritize privacy, and proximity to downtown Seattle within about 30 minutes has made it a long-standing residence for local elites. The fact that it is a small municipality with a population of less than 1,500 also explains the area's exclusive nature.

Edmonds downtown and the Bowl area cannot be overlooked either. This area, featuring a ferry terminal and waterfront promenade, has attracted affluent retirees and professional families with its artistic atmosphere and quiet harbor town image. The median home price in this area is around $1 million, with properties closer to the waterfront often exceeding $1.5 million. The downtown commercial district, lined with galleries and small cafes, also contributes to the area's premium appeal.

The area near the Mill Creek Country Club is also worth noting. This community, developed systematically since the 1990s around a golf course, is known for its well-maintained landscaping and strong school district reputation. The median home price ranges from $900,000 to $1.2 million, significantly higher than the average in Lynnwood. The reputation of schools in the MySonner School District continues to attract families with young children.

Considering that the median home price in Lynnwood is around $600,000, the gap with Woodway is more than threefold. This disparity cannot be explained solely by differences in home size. Factors such as school district assignments, commuting distances, views, and, above all, the social symbolism of "where you live" seem to be reflected in the prices. It is also noteworthy that even during the recent rise in mortgage rates, the price adjustments in these higher-end areas have been relatively mild compared to the average in Lynnwood.

There has been a noticeable shift within the Korean community in recent years. In the past, many would move to Bellevue or Kirkland after building their assets, but recent market trends show that Korean professionals nearing retirement or affluent individuals winding down their businesses are increasingly considering quieter and lower-tax areas like Edmonds or Woodway as new places to settle. The absence of a state income tax in Washington appears to support this trend.

From a rental income perspective, these areas tend to have lower rental yields compared to sales prices, so purchases are primarily for actual residence and asset preservation rather than pure investment. In contrast, the area near Mill Creek has a steady demand from school districts, making it a relatively realistic option for families considering both investment and residence due to its lower risk of rental vacancies.

For families residing in Lynnwood who prioritize school districts or commuting, the area near Mill Creek is advisable, while those valuing a relaxed lifestyle and views after retirement may want to consider Woodway or Edmonds. However, these areas often have limited inventory, making it challenging to purchase at the desired time, so if interested, it is practical to observe the market for at least 6 months to a year.

In the recent fluctuating environment of mortgage rates in the high 6% range, higher-end areas like Woodway and Edmonds appear to be less affected by rate changes due to a higher proportion of cash purchases. In contrast, properties in Mill Creek or those at the average price in Lynnwood tend to be more dependent on loans, making changes in buyer sentiment due to interest rates more pronounced.