Seattle is not just a trendy city – it is a city full of opportunities and a great place to live. If you think about buying a house in Seattle, here are a few things you need to know.
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Housing inventory is very limited
Seattle had just 0.49 months of home supply in May, according to data compiled by Housing Tides, EnergyLogic. This is 1.15% less than a year earlier.
To be clear, limited inventory isn’t just a Seattle issue. Chances are, nationally, there are not enough homes to buy. In May, stocks at the national level stood at just 1.13 months. In context, it takes 4 to 5 months to create a balanced housing market – one in which buyers are not necessarily preferred over sellers, or vice versa.
Since the housing stock in Seattle is so low, it can be difficult for you to find a property that fits your price range. Or, you may find it difficult to find a home with the features you are looking for.
Seattle housing prices rise
Back in February 2016, the median home price in Seattle was $ 405,000. In May 2021, the median home price hit $ 738,000. This is 26.2% more than in the previous year, which is quite a significant jump.
Of course, home prices have gone up not only in Seattle. National property values have risen as a result of low supply and high demand. But given that average price of $ 738,000, buying in Seattle could be a financial boost right now.
Mortgage rates are still competitive
Home prices in Seattle may rise and inventory may be extremely limited. But mortgage rates are still stable at a competitive level.
At the time of writing, average interest rate in Washington state for a 30-year fixed loan – 3.16%. Meanwhile, the average mortgage rate for 15 years is 2.47%. Historically, these rates are quite low and they may allow you to buy a home at a higher price.
In fact, if you secure a 30-year 3.16% fixed rate mortgage on a $ 738,000 home that you shell out 20% on, your monthly principal and interest payments are $ 2,539. This figure, however, does not include other home ownership costs, such as:
Should you buy a home in Seattle today?
To buy a home in Seattle, you will need a fairly sizable down payment based on what the property value looks like. You also need to make sure that you can change the current mortgage payments…
Ask yourself the following questions to see if you are ready to buy:
- My credit rating in a good shape?
- Do I have a low level of existing debt?
- Can I Reduce The Value Of A Seattle Home By 20%? And if not, can I afford the cost private mortgage insurance on top of my mortgage payments?
- Is my work stable?
- Have I done my research and determined that Seattle is where I want to live?
If the answer to all these questions is in the affirmative, then now it may be good time to buy a houseespecially considering the competitiveness of mortgage rates. However, there is nothing wrong with refraining from looking for homes at a time when there are more properties to choose from. Low mortgage rates are probably not going anywhere, so there is no need to rush to a decision.