Summary: Buyers always struggle with the same question: should I buy now or wait a few more months to make a purchase? This article will provide you with some tips on what to do.
We’ve just started 2020, and that means a lot of would-be home buyers are asking the same question: Should I buy a home in Seattle now, in the winter of 2020, or should I wait until later on in the year? What do I stand to gain or lose if I wait? What will the market be like three, six or nine months from now?
Unfortunately, no one can predict future housing conditions with complete accuracy. But there are some things you can do to make an informed decision. This article offers two important considerations for buying a Seattle home early or later into 2020.
Buying a Home in Seattle in 2020: Buy Now or Wait
Here’s a summary of the five points covered below: If you buy a home in Seattle in early 2020 versus later on in the year, you could end paying more. That’s because house values in the area are expected to continue climbing over the next 12 months.
Mortgage rates might rise a bit as well. Even though they are very low right now and are expect to stay under the 4.0% mark throughout the year, they could still be higher by the time you decide to lock in on a rate and mortgage. But it’s those rising house prices you should be concerned with, primarily. By some estimates, Seattle home values could rise by 4.2% over the next 12 months alone (source: Zillow).
Here are a couple of things you should know about buying a home in Seattle, whether early or late in 2020.
1. Seattle home prices have dipped over the past year.
If you’ve been paying attention to the housing market in Seattle, you may have noticed that it has been rather cool over the past year. In fact, prices have actually declined over the past 12 months. That’s a big sigh of relief for buyers, considering how high prices in the city have climb up to mid-2018.
But experts agree that home prices in Seattle will start to climb again throughout 2020. In fact, Zillow predicts that prices will increase 4.2% over the next 12 months. Considering this, now may be a good time to jump into the real estate market in Seattle before prices get too high again. Plus, it’s a great opportunity to take advantage of price appreciation and growth in home equity.
So that’s the first thing home buyers should know. When buying a house in Seattle in 2020, you may be paying more in a few months compared to today.
As a home buyer, it’s important that you enter the market with realistic expectations, as to how much of a house you can afford. And the best way to do this is to look at recent sales prices on websites like Realtor.com, Zillow and Trulia. Price awareness is key in a housing market with rapidly changing conditions, like Seattle.
2. Mortgage rates are expected to stay stagnant, but may rise slightly.
If you wait until later in 2020 to buy a house in Seattle, you’ll probably pay more than you would if you purchased earlier in the year, for reasons we’ve just discusses. That’s because home prices in the metro area are expected to continue rising through the end of this year and into next.
While the year-over-year price gains in Seattle have been staggering up until 2018, the monthly gains have not seen the same type of increases in 2019. There was certainly a cooling trend in Seattle over the past year. And while the market is still rather cool as of January 2020, the market is expected to pick up throughout 2020, and prices could be on the up-and-up.
At the same time, mortgage rates are very low right now. As of the last week of January 2020, the mortgage rate for a 30-year fixed-rate mortgage was 3.51%. That’s hovering near historic lows, which makes today a great time to get into the real estate market in Seattle.
It’s forecasted that rates will remain low throughout the year. That said, rates could increase up to 4.0% at some point, That means you could be paying more for a mortgage if you wait compared to what you would pay if you locked into today’s extremely low rates.
So the bottom line here, based on the consensus among economists, is that Seattle-area house prices will likely continue rising through 2020, while mortgage rates will remain under 4.0%.
Ready to Apply For a Mortgage in Seattle?
If you’re considering applying for a home loan in Seattle, Sammamish Mortgage can help. We are a local mortgage company based out of Bellevue, Washington that serves the entire state, as well as Oregon, Idaho, and Colorado. Our mortgage financing professionals can work with you to help you determine which one of our mortgage programs is right for you. Contact us today with any questions you have about home loans in Seattle.