If you’re following the real estate market in the Seattle area at all, you probably have come across headlines and news on the current house market, when is the exact “right” time to buy a home is, or the rise or fall of home prices. In an expensive real estate market, it’s common for buyers and sellers to put a pause on the their real estate goals until the more economically ideal opportunity comes their way, which has historically been in different times of the year for the buyer and seller. Overall, this creates a gap in the market...but Seattle has recently seen a shift in the market, creating a more sustainable outcome for both sides.
In the second half of 2018, the Seattle real estate market experienced a cool-down, which was frustrating for sellers due to the urgency to lower their listed home prices. Subsequently, sellers dropped their prices, which resulted into homes going off the market. Though this “cool-down” has come to an end in the Seattle area, buyers are encouraged to get a home that has been on the market for several months, under the contract for slightly lower than its original listed price. Despite this cool-down in the fall and winter months, Seattle’s real estate market is expected to experience a continuous rise year over year... just at a more more sustainable level then we've experienced over the last 5 years of double digit home value appreciation.
With spring in bloom, this is the time of the year where the real estate markets starts to heat up. In the Seattle area, home prices have been rising at their slowest pace in years, continuing a downward trend that started in the middle of 2018. Recent forecasts have predicted that the median home price in Seattle will rise 2-2.5 % over the next twelve months, compared to rising in double digits annually several years ago. With the slowdown in price appreciation, sellers have been more flexible and eager to negotiate, creating a wider selection of affordable options for buyers in 2019. The comparatively slow rate of prices increasing is in accordance to the national trend, which is also declining. Mortgage rates are also at the lowest they have been in 12 months. Lastly, Incomes in the Seattle area has been on the rise at the same pace as home prices, which has been a monumental shift after six years of home values significantly outpacing wages.
Since the busiest time of the year for sellers and buyers has just begun, this is where the conversation and questions open up:
Is this “really” the best time to invest in real estate?
Despite the few logistical aspects of why 2019 is the year to make an investment, there are innate characteristics of Seattle that add value to your long term investment. Not only has Seattle has grown to be considered a top international metropolitan destination, but it is a leading tech-hub city, that has attracted people from all over the country and world, increasing the Seattle population. This along with other attributes- natural beauty, diversity and good job prospects, this will sustain housing demand for the foreseeable future.
Bottom Line - Now is a great time to invest in real estate in Seattle.
Home values aren't going to go down anytime soon and interest rates aren't going to get any lower.
Drop me a line to find out your home buying or selling options
or join us for our next "Beers + Home Buying" Class to learn about the process of buying a home in Seattle.
Thanks for sharing in this journey with me.
Until next time, be well and be excellent to each other!