When investing, timing is everything. Being on top of local real estate market trends can help you determine the best time to purchase or sell a home.
The Coronavirus pandemic's sudden arrival brought health concerns, job losses, and a weakening consumer confidence in real estate buying and selling. Despite all the economic and health challenges brought by the pandemic, the Seattle area's Home prices have been rising steadily over the past few months.
According to the S&P CoreLogic Case-Shiller Home Price Index in November of 2020, the year-over-year increase for Seattle homes was the second-highest in the U.S., behind only Phoenix. November was the 10th consecutive month of Seattle in the second spot.
Over the last decade, Seattle's median home price has increased from $365,000 to $804,48.
According to Redfin, the average sale price per square foot in the Seattle metro area is now $466, up 7.2% from last year.
While the pandemic caused price growth to slow down in May and June, home prices rebounded throughout the rest of the summer and into the fall, increase in prices sped up again.
Seattle's strong price appreciation will continue in 2021- but not quite as fast as it was last year. If you want to buy a home soon, you will probably have to make an offer above the selling price to get a listing.
Mortgage rates are expected to remain low for most of 2021. Therefore, if you think of buying a property, you should wait until more sellers and new construction projects hit the market in the second half of the year.
If you want to find the right home in this seller's market, here's some advice:
All house hunters go into the market with specific expectations regarding the property's features, location, size, and price. If you can't find the exact house you want, be willing to give up some "nice-to-haves" for your "must-haves." If location is your main priority, you can settle for a house in a nice neighborhood you can afford and upgrade it over time.
If the area where you're planning to buy is too competitive, search in neighboring locations and communities. You might be surprised at the bargains you can find in a less popular
Getting preapproved for a mortgage before entering the market is a must. With such a limited home supply, not having your financing arranged ahead of time gives a preapproved buyer a free opportunity to swipe the house you want right out of your hands.
The low inventory gives sellers enormous negotiating power. Do your research and be ready to make a fast and fair offer once you see the house you want to buy.
If you have recently found yourself googling "We Buy Houses Seattle companies," trends are pointing to selling as soon as you can before other sellers and constructions hit the market in 2021.