Home prices in Everett, Washington rose by double digits in 2017. They are expected to continue rising throughout 2017 but at a slower pace. This is the overall forecast for the Everett real estate market in 2017.
Everett Real Estate Forecast: Prices Slowing Down in 2017
According to the housing research team at Zillow, the median home price in Everett, Washington rose by 11% in 2016. The median price was around $300,000 when this article was published, in mid-December. The company’s economists anticipate that home values in the city will rise by another 5.2% during 2017.
While this does suggest a slowdown in overall home-price appreciation, the forecast for Everett’s real estate market is still stronger than the national outlook. Zillow expects house values nationwide to rise by 3% in 2017.
Essentially, the Everett real estate market could experience a return to “normalcy” in 2017, with prices rising closer to historical averages. With that being said, Everett (and the rest of the Seattle metro area) will probably outperform the nation next year, as it did in 2016.
While Everett has plenty to offer on its own, the city also benefits from its close proximity to Seattle. The population of the broader metro area has risen steadily in recent years, bringing more home buyers into the real estate market and boosting home prices.
Census Bureau data released earlier this year showed that Seattle was 4th for population growth among the nation’s 50 largest cities. This is partly why nearby cities like Tacoma and Everett have such strong real estate forecasts for 2017.
Higher Loan Limits in 2017
Here’s some good news for Everett home buyers and mortgage shoppers. In 2017, conforming, FHA and VA loan limits will be higher than they were in 2016. Federal housing officials made these changes in response to the significant home-price gains that occurred during 2016.
In 2017, the loan limit for a single-family property in Everett will rise to $592,250. This applies to conventional mortgage loans, as well as VA and FHA-insured home loans.
Mortgage Rates Surge at Year’s End
Here are another trend and forecast that could affect the Everett, Washington real estate market in 2017. In November of 2016, mortgage rates began a steep climb and reached a two-year high by the middle of December.
The chart above was released by Freddie Mac on December 15, 2016, along with the results of their latest mortgage industry survey. On the right side, you can see the uptrend in rates mentioned earlier.
So here’s an easy prediction for the Everett housing market in 2017: We will start the year with higher mortgage rates than the same time a year ago. The Mortgage Bankers Association expects rates to rise gradually throughout 2017.
With rising home prices and interest rates, home buyers considering a purchase might want to move sooner rather than later. Postponing a purchase until later in 2017 could result in higher housing costs.
Disclaimer: This article includes forecasts and predictions for the Everett, Washington real estate market in 2017. Data and projections were provided by third parties not associated with our company. We have compiled them here as an educational service to our readers.
Have questions? Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho and Colorado. Please contact us if you have mortgage-related questions.