There are several important factors you should consider before you refinance your mortgage this year, including current rates and your financial situation.
Home prices in Sammamish have changed over the recent past, as have mortgage interest rates. This article will go over the climate of the market today and what homebuying in Sammamish is like in 2021.
In This Article:
- Tight Inventory Has Ramped Up Competition Among Buyers
- Home Prices in Sammamish Have Increased
- You’ll Want to Arrange Your Financing Ahead of Time
- King County Loan Limits Increased for 2021
Are you thinking about buying a home in Sammamish, Washington in 2021? If so, you probably have a lot of questions about the local real estate market. Here’s a look at current housing market conditions in Sammamish, for those buying a home in 2021.
Tight Inventory Has Ramped Up Competition Among Buyers
The inventory situation across the Seattle metro area has tightened over the past month. According to the Northwest Multiple Listings Service (NMLS), King County’s housing inventory dropped 12% in January 2021 compared to January 2020. The total number of active listings in January 2021 in King County was 1,855, but was significantly lower exactly a year later in January 2020 at 2,118. Right now, there is a mere 1-month worth of inventory in King County.
It seems as though 2021’s housing market in the Seattle area is starting off with a super-low housing supply. This year, the local real estate market in Seattle and the surrounding area and county – including Sammamish – is seeing a spike in homebuyers, more than usual.
Coupled with historically-low mortgage rates and a positive labor market, this is lending itself to increasing prices and a sizzling market to come. It’s certainly still a seller’s market out there.
That’s the first thing you should know about buying a home in Sammamish in 2021. Buyers are having to compete more fiercely to get their hands on a home in Sammamish and the surrounding King County.
Waiting too long to make an offer, or quibbling with the seller over small-ticket items, could result in a missed opportunity.
Home Prices in Sammamish Have Increased
The Seattle metro area is easily one of the most expensive places in the United States for home buyers, joining the ranks of Silicon Valley, New York City, and other high-priced markets.
The situation is similar in Sammamish. The median sale price for homes sold in Sammamish increased 12% over the past year to around $1,063,463 as of March 2021. This is a testament to the conditions mentioned earlier in terms of low inventory, a strong labor force, and very low interest rates.
As a result of these trends, those buying a home in Sammamish in 2021 may encounter higher housing costs compared to other parts of the country in 2021.
You’ll Want to Arrange Your Financing Ahead of Time
In a slow-moving real estate market, where there is plenty of inventory to go around, a home buyer could potentially make an offer before having the financing arranged. It’s wise for buyers to get their financing in order well before they begin their search for a new home.
If you are planning to use a mortgage loan to buy a home in Sammamish, it would be a good idea to get pre-approved by a mortgage lender before shopping for a house. Doing so will provide you with a number of benefits.
For one, you’ll be showing sellers that you are a serious, qualified buyer, and they may look more favorably upon you when deciding which buyers to entertain.
Secondly, being pre-approved will tell you exactly how much you will be able to afford in a home purchase. As such, you’ll be able to focus only on properties that fall within your price range rather than wasting time looking at homes that you cannot afford.
Please contact us if you have questions about getting pre-approved for a loan.
King County Loan Limits Increased for 2021
Even though home prices have dipped somewhat, the single-family loan limit has been increased to $776,250 for 2021 in King County. That means buyers can purchase more expensive homes in the area this year. This is precisely why loan limits tend to increase year after year: to accommodate a rise in home prices.
The current (2021) loan limit for a single-family home purchase in King County of $776,250 and applies to conventional and FHA mortgages (VA loans no longer have loan limits in 2021, as they have been eliminated). The median house price for the county is now $716,860, as of March 2021.
Related: King County buyer’s guide
Need a Mortgage Loan?
Do you have questions about mortgages or are thinking of applying for one in Sammamish? We can help. Sammamish Mortgage has been helping borrowers in Washington, Idaho, Oregon, and Colorado get mortgages since 1992, and we welcome the opportunity to help you navigate all our mortgage programs. Please contact us if you need mortgage financing to buy a home in Sammamish.