Maybe you were thinking about buying a home late last year or at the beginning of 2017. The soaring prices and hectic pacing of a seller-friendly market are intimidating. You may have thought that if you wait until the boom of the spring and summer sales was over, the local market would return to normal.
Well, the numbers for the summer are basically in, and Seattle continues to be the hottest real estate market in the United States. If you were waiting for prices to drop off or demand to slow, prepare to be disappointed. Homes comparable to the ones you considered earlier this year are probably priced higher now than they were then. In fact, since June of 2016, the average home price for a single-family home has gone up a staggering 13.4 percent!
Increased Owner and Investor Demand Leads to Growth
Prices and demand have been rising every month so far this year. Real estate and lending professionals are comparing the current market to the 2006 bubble, which drove prices up nearly 20 percent in a single year before the Great Recession pushed them back down again.
Prices in the region packed on 1.4 percent since last month. That is actually lower than rates of monthly growth seen throughout 2017 so far. In other words, prices and demand are still on the rise. The longer you wait, the more your home is likely going to cost. If you were waiting a few months to see how the market would adjust, you have your answer. Prices and demand are likely going to stay strong for the foreseeable future.
Prices On the Rise Lead to Bigger Mortgages
Did you know that only about 25 percent of all homes in the Seattle area sell for less than a quarter of a million dollars? Chances are strong that any home you buy will be at least $250,000, if not substantially higher. Of course, if the market continues to thrive due to demand, the value of your home will continue climbing as you live there, building equity. When it's time to sell, it could be worth more.
Prices are up an unbelievable 78 percent compared to the recent low of five years ago. The average home costs about $750,000, with homes on the Eastside of Seattle averaging $860,000. More buyers than ever will need to look into jumbo mortgages. The good news it that jumbo mortgages can be easier to obtain when local markets have such high prices. It shows the lender that the market can support the price being financed. It may be time to wade into the real estate market if you're interested in being a homeowner in Seattle.