Summary: The cost of buying a home in Seattle, Washington has risen steadily and sharply over the last couple of years. But a recent decrease in mortgage rates could give home buyers a bit more breathing room. Here are the latest trends and statistics relating to the cost of buying a home in Seattle, updated for fall 2019.
Seattle Home Buying Costs on the Rise
According to data published recently by real estate research firm, Zillow, the median single-family home price in Seattle decreased 3.9% in September 2019 compared to a year earlier. The median price dipped to $713,100 in September.
In King County as a whole, the median home price decreased 2.4% in September, compared to the same month last year.
This is a far cry from how quickly and sharply home prices were increasing in Seattle in the years past. From 2012 to 2018, the price of homes in Seattle more than doubled and reached a peak of $750,000 in June 2018.
A Forecast for Continued Depreciation
No matter how you slice it, the cost of buying a home in the Seattle metro area is lower higher now than it was last year. And they are expected to continue declining over the coming months.
In September, Zillow predicted that the median home value for Seattle would decline by another 2.9% over the next 12 months. This particular forecast extends into September 2020.
Seattle homeowners who got into the market during the rise in home prices are enjoying unprecedented returns on their investments. But for buyers, now may be a great time to enter the real estate market in Seattle as prices are much lower than they were last year and mortgage interest rates continue to stay low.
Mortgage Rates Remain Low
Overall, the cost of buying a home in Seattle is quite a bit compared to other parts of the state or country, despite recent price declines. But, as already mentioned, there is some good news for home buyers. In September, mortgage rates sit at 3.73% for a 30-year fixed-rate mortgage and actually hit their lowest level of 2019 just a couple of weeks earlier.
According to the weekly mortgage market survey conducted by Freddie Mac, the average rate for a 30-year fixed home loan dropped to 3.49% during the week of September 5. That was the lowest average of the year. In fact, you would have to go back to November 2016 to find lower rates.
At the beginning of 2019, 30-year fixed home loans had an average rate of 4.51%. So we have come down quite a bit since then. Still, high home prices in Seattle have offset this decline in mortgage rates. But the fact that they’re declining is making home buying more affordable in the city.
The bottom line for home buyers in the Seattle metro area is that housing costs may decrease over the coming months. But mortgage rates are currently at a year-to-date low. So now might be a good time to make that purchase.
Disclaimer: This article contains data, trends and forecasts relating to the Seattle real estate market in 2019 and 2019. This information was gathered from third-party sources not associated with our company. We have presented it here as an educational service to our readers.
Have questions? Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region, including Idaho, Oregon, and Colorado. We offer a wide variety of mortgage programs and tools with flexible qualification criteria. Please contact us if you have mortgage-related questions. Last Updated: [last-modified]