- Live Rates
- Contact Us
Sometimes, it pays to wait for the right time to buy or sell a home in Washington State, Oregon, Idaho, or Colorado. And for buyers and sellers alike, today’s housing market may be ideal for both camps.
The current real estate market presents benefits for buyers and sellers for different reasons. Let’s take a peek at the market today and help you understand why the current housing market is good news whether you’re buying or selling.
There are a couple of reasons why today is a great time for buyers to get into their local real estate market: low mortgage interest rates and low monthly mortgage payments.
The loan amount that buyers take out with their lender directly impacts how expensive or affordable their loans will be. A lower amount means less to have to repay the lender over the term of the mortgage.
But mortgage interest rates also play a key role in the overall cost of a home loan. The lower the mortgage rate, the better, as low mortgage rates give buyers more purchasing power.
Right now, the mortgage interest rate for a 30-year fixed-rate mortgage is currently 2.86%. Compare that form just 3 years ago when rates go the same mortgage type was around the 5% mark. That big difference can significantly impact the overall cost of a mortgage and the monthly mortgage payments.
Let’s illustrate what that difference looks like using an example of a $500,000 loan.
At today’s rate of 2.86%, monthly mortgage payments would be $2,065 and the overall interest payment over the 30 years would be $243,741.
Now compare that to a 5% mortgage rate using the same mortgage amount. Now, the monthly mortgage payments would be $2,668 and the overall interest payment over the 30 years would be $460,643.
That’s a difference of over $600 each month and nearly $200,000 in interest over the life of the loan!
Clearly, there are significant savings to be had with a much lower interest rate, and based on today’s low interest mortgage environment, you can take advantage of major cost savings.
Buying a house is more affordable than renting, month-to-month. Right now, the average mortgage payment for homebuyers is $1,255, compared to the average monthly rent of $1,607 for renters.
With less being paid towards housing, you can use that extra money to be put towards something else that’s just as important, such as saving up for retirement, investing, or paying for your child’s post-secondary education.
But not only that, each mortgage payment you make will go towards building equity in your home. Not only can you profit handsomely from this equity if you ever sell in the future, but you may also be able to use it to borrow against if necessary at some point when a large sum of money is required.
For instance, a second mortgage or home equity loan can be tapped into if you have enough equity built up in your home. That’s something that only homeowners can take advantage of, not renters.
Homebuyers certainly have very good reasons to jump into the real estate market these days. But the good news is not all reserved just for buyers: sellers can also benefit from putting their homes up for sale today for a couple of good reasons: quick sales and multiple offers.
Sellers can expect the sales process to move quickly when they list their homes on the market. That’s because the average number of days on the market (DOM) is very low these days. More specifically, the average DOM today is 17 days, compared to 35 days not long ago.
That means you won’t have to spend so much time having to keep your home in show-ready condition at all times to accommodate all the showings, many of which may be last-minute. Instead, you can minimize the stress of having to sell your home when the market is hot for sellers and demand is high among buyers.
And if you stage your home professionally and price your home right with an experienced real estate agent, you can expect your home to sell even faster.
In a hot seller’s market, the demand for housing is strong among buyers. That means there is a higher chance that you may receive more than one offer for your home from several buyers. In this case, you’ll have the distinct opportunity to choose the best offer in terms of highest offer price, highest earnest money deposit, and most convenient closing date for you.
Historically, the average number of offers for a listing was 2.2. But today, the average number of offers that a listing will receive is 4.5. This gives sellers like you a much bigger advantage to get as close to a perfect offer as possible.
Let’s connect to discuss current trends and what they mean for you so you can capitalize on the unique opportunities you have as a buyer or seller in Washington State, Oregon, Idaho, or Colorado.
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 that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.
There are several tips for home buying success that you should keep in mind when using mobile house hunting apps
There are several signs that you are buying a good home, such as finding a home that fits your everyday lifestyle.