Seattle Housing Market is Competitive But Here’s Why It’s Still a Good Time to Buy
The Seattle housing market has been extremely competitive over the past year. Listings routinely get multiple offers – many in cash – and buyers have to compete on all levels to win their dream home. Although the market remains competitive, it’s still a good time to buy.
Increasing housing prices means a good investment. Housing markets typically see a slowdown during the summer, and this year was no different. July showed a small dip in housing prices, from a median of $500,000 to $485,000, according to the NWMLS. In general, however, housing prices continue to rise year over year, which means that buying now has a strong likelihood of your investment increasing in value. This means that a few years down the road, when you’re ready to sell, you can project to have a nice increase on your home’s value. With a higher value, you’ll be able to sell at an increase and see a nice return on your real estate investment.
Competition is about to decrease. With steadily increasing housing prices, it’s a good time to buy, but buyers should be prepared to move extremely quickly when homes come onto the market. Inventory remains incredibly low – back in the spring, Seattle has the lowest ever inventory on record. While the number of active buyers decreases in the seasons to come, the ones who are active are very motivated!
Interest Rates. Many of you will need to take out a mortgage to buy a home. What you may not know, just a small change in an interest rate can have huge impacts on your buying power. If we look back historically, we are at some of the lowest interest rates..ever. While they may not be as low as 16 months ago, getting locked in for 30 years in the low 4% range is amazing! Many economists believe that interest rates could be in the 5's as early as this winter. Combining climbing interest rates, with our current appreciation and many buyers could get priced out if they wait too long.
It is definitely true that the current market favors sellers over buyers, and buying a home is an incredibly competitive process. However, it’s still a good time to buy, particularly as we approach the colder, darker months.
For more information on your specific market, or how you can get started, please do not hesitate to reach out.