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 2020.
Are you planning to buy a home in Seattle at some point in 2020? If so, are you familiar with home prices in the city? Let’e dive in deeper into the real estate market in Seattle to find out how much it will cost you to buy a home in Seattle in 2020.
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 2.3% in February 2020 compared to a year earlier. The median price dipped to $741,800 in February, though prices are now on the rise.
In King County as a whole, the median home price decreased 0.4% in February, 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 February, Zillow predicted that the median home value for Seattle would increase by 4.2% over the next 12 months, which goes to show how much the market will be warming up this year. This particular forecast extends into February 2021.
Seattle homeowners who got into the market during the rise in home prices years back 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 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 February, mortgage rates sit at 3.47% for a 30-year fixed-rate mortgage and are near historic lows.
The same week last year, 30-year fixed home loans had an average rate of 4.37%. 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 rates are very low right now 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 remain stable over the coming months thanks to low rates. But mortgage rates are currently at a 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 2020. 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 About Mortgages in Seattle?
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.