The year 2020 has been a busy one for the real estate market. But what will 2021 be like? Check out this infographic to learn more.
Summary: This article is part of an ongoing series for home buyers across the Seattle metro area. Our last report examined real estate market conditions and trends in Bellevue. Today, we have an update for those planning to buy a home in Kirkland, Washington in 2020.
Are you planning to buy a home in 2020? Have you narrowed your search down to Kirkland, Washington? If so, you’ll want to get familiar with the local housing market to help ensure that you make a sound purchasing decision, and this article will fill you in on what the market is like in Kirkland in 2020.
How the Kirkland Housing Market Is Similar to Seattle
In many ways, the real estate market in Kirkland mirrors Seattle, its neighbor to the west. Both areas have a major shortage of housing supply, relative to demand. This makes things very competitive for home buyers who are seeking a property to buy.
Additionally, price trends in both areas have been similar over the last couple of years. The median home value in both cities dipped over the past year. More specifically, home prices declined 2.3% and 1.0% in Seattle and Kirkland, respectively, according to real estate reports.
The third thing these markets have in common is quick sales. Whether you plan to buy a home in Kirkland or Seattle, be prepared to make a strong offer in a timely fashion. Properties listed for sale tend to generate offers in a matter of days.
Lastly, home prices are rather similar in both Seattle and Kirkland, which we will get into next.
Home Prices Set to Rise in Kirkland in 2020
According to the real estate information company Zillow, the median home value for Kirkland, Washington is around $762,000 as of February 2020. While prices in Kirkland have dipped over the past 12 months, they are expected to rise over the course of 2020.
Looking forward, the company’s economists recently predicted that the median home value would rise by around 5.1% over the next 12 months (through February 2021). So they expect price growth to speed up over the coming months. This is a trend being seen in many U.S. cities right now. The general consensus is that house values in most areas will rise faster in 2020 compared to 2019.
So that’s an important thing you should know about buying a home in Kirkland. Buyers today are encountering high house values as a result of steady appreciation over the last few years. And while no one can predict future housing trends with complete accuracy, the consensus outlook is that home prices across the Seattle metro area will be trending north.
Inventory Will Continue to Be a Factor in 2020
There are plenty of folks in the market to buy a home in Kirkland, but not enough inventory to go around. This has been the big real estate headline for the last couple of years, in housing markets across the Seattle area. In fact, Seattle and Kirkland are two of the tightest real estate markets in the country right now when it comes to supply.
As of February 2020, Kirkland has just barely over a one-month supply of homes for sale. That’s well below what is considered to be a balanced market, and it indicates a strong seller’s market. It also accounts for the quick sales mentioned earlier.
Given this, conditions are pretty tight within the local real estate market. So buyers will want to give themselves plenty of lead time when shopping for a home in the area. It also helps to be flexible and open-minded, in terms of the property features you want.
Mortgage Rates Remain Low
Right now, mortgage rates are somewhere around 3.47%, which is near historic lows. Low mortgage rates make home loans much more affordable, and locking a low rate today can afford buyers with plenty of savings. According to Freddie Mac, mortgage rates are expected to average around 3.8% in 2020. That’s great news for buyers looking to buy in Kirkland in 2020, as it can make homebuying more attainable.
In closing, five tips for Kirkland home buyers in 2020:
- Start your housing search early to account for limited supply in the market.
- Be prepared for “lively” competition from other buyers.
- Consider making your first offer a strong one, supported by recent sales data.
- Get an experienced agent on your side, so you can move quickly when necessary.
- Consider buying sooner rather than later to avoid (possibly) higher housing costs.
- Lock in a mortgage rate today to ensure a low rate and greater savings.
Related: Buying in Lynnwood, Washington
Need Financing in Kirkland?
If you’re in need of a home loan to finance a home purchase in Kirkland, WA, then we’d love to help. Sammamish Mortgage is a local, family-owned company based in Bellevue, WA. We offer a variety of mortgage programs for borrowers in Washington, Oregon, Idaho, and Colorado. Please contact us if you need a mortgage loan to buy a home in Kirkland, or if you have any financing-related questions.