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4 Reasons Why 2021 Could Be a Good Time to Buy a Home in Seattle, WA

Published:
November 30, 2018
Last updated:
November 24, 2021
Reasons Why Now Could Be a Good Time to Buy a Home in Seattle

If you’ve been contemplating buying a home in Seattle lately, then perhaps 2020 may be the year that you take the leap. There are plenty of reasons why this year may be the time to do it, and this article will outline what those reasons are.

In This Article

It looks like 2021 could be a great time to buy a home in Seattle. Home prices are starting to increase into 2021. And mortgage rates are expected to remain fairly stable over the coming months. Those are just a few of the trends we are tracking, as we head further into 2021.

1. Mortgage rates are near historic lows.

Mortgage rates shot up during the first part of 2018, catching a lot of Seattle home buyers off guard. But they’ve since been on a steady decline. As of right now, rates are sitting at 2.77% for 30-year fixed-rate mortgages, which is near a five-decade low.

Rates like these are making homebuying much more affordable. Even a 1.0% decrease in rates can mean savings of tens of thousands of dollars over the life of a mortgage. Many of those who already own a home are refinancing their mortgages in an effort to capitalize on these lower rates and save a ton of money.

Further, refinances are increasing, according to Freddie Mac’s economists:

“Refinancing application activity is rising to the highest level in seven years. This surge coupled with strong purchase activity means that total mortgage demand remains robust, reflective of a solid economic backdrop and a very low mortgage rate environment.”

Economists from both Freddie Mac and Fannie Mae have predicted the 30-year mortgage rates will average around 3.0% during 2021. So the expectation is that they will remain relatively stable throughout 2021 and remain under the 3.0% mark. This is reason enough to get into the Seattle real estate market in 2021.

Today’s Seattle Mortgage Rates

2. The local job market is improving in 2021.

Despite the hammering of the economy and jobs as a result of the coronavirus pandemic, the labor market is slowly improving. Economists feel optimistic that employment will rebound over the next few months and pick up the pace throughout 2021 as vaccinations continue and additional government assistance continues.

With a stronger labor force, consumer sentiment and spending power is much stronger. And with that comes a better financial position to afford mortgages. Economists are hopeful that the labor market will steadily improve over the coming months, which can put consumers in a better financial position to buy a home in Seattle.

Related: How To Choose the Right Neighborhood in Seattle

3. Home prices are on the rise.

Over recent months, home buyers in Seattle have finally gotten the chance to catch their breath, after the double-digit price growth of previous years. Home prices skyrocketed from 2012 to 2018, giving homeowners the chance to capitalize on quick accumulation of home equity. But from mid-2018 to mid-2019, home prices actually plateaued and decreased.

This was a much-needed situation for buyers who would have been priced out of the market as a result of such rapid price increases.

But the trend has reversed since mid-2019. In fact, prices have been on the increase ever since. According to Zillow, home prices in Seattle increased 10.9% over the past year and are expected to rise by another 11.1% over the next 12 months.

Considering this fact, buyers are encouraged to get into the market before prices start to take off. Getting into the market before prices skyrocket is a sound investment strategy and will allow buyers to take advantage of an increase in home equity much faster.

4. Sellers appear to be flexible.

Here’s another sign that 2021 might be a good year to buy a home in Seattle: Sellers may be more flexible. But they may still be willing to negotiate on price and other components of an offer.

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Need a Home Loan in Seattle, WA?

Will you need mortgage financing to buy a home in Seattle? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest since 1992. We offer a wide variety of mortgage programs to borrowers in Washington, Oregon, Idaho, and Colorado with flexible qualification criteria. Please contact us today with any financing-related questions you have.

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