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Are you planning to buy a home in Washington State sometime during 2022? If so, you’ll want to keep reading. This home buying report provides an in-depth look at real estate market trends across the state of Washington. It is fully updated for 2022 with all of the latest data.
A home purchase is likely the biggest financial investment you will ever make. Given this fact, you’ll want to do some research into the Washington real estate market if you are planning to buy in 2022.
Relatively low mortgage rates, rising home prices, and limited inventory: those are the trends we’ve been watching over the last few months and sharing here on our blog.
Mortgage rates have been gradually and steadily increasing in recent months, though they are still relatively low. Home prices in Washington have continued to climb as well. In fact, Washington State’s housing market is considered very hot right now, with huge demand and limited inventory driving prices north. There’s still a shortage of homes for sale relative to the demand from buyers.
These are the most important trends that will affect Washington State home buyers in 2022 — and possibly beyond. Here’s what you should know about them.
Fixed-rate mortgage rates have been on a steady climb over recent months. According to Freddie Mac, the rate for a 30-year fixed mortgage loan is 3.55%. The entity expects the rate to reach around 3.7% by the end of the year. Meanwhile, experts with the Mortgage Bankers Association expect rates to reach 4% by year-end.
Home buyers in Washington who are “on the fence” about making a purchase might want to consider doing it sooner rather than later. If house values and mortgage rates continue to increase, buyers who delay their purchases would encounter higher housing costs down the road.
You might expect demand among home buyers in Washington to ease up a bit in response to rising prices. But that’s not happening. Demand continues to remain high in real estate markets across the country and in Washington State specifically.
In Washington State, home buyers are still very active within the real estate market. In fact, our state is home to one of the most historically competitive real estate markets in the country — Seattle.
Seattle has seen a strong market over the past year, and things are expected to continue along the same pace over the next year.
Related: Spokane: the ‘other’ hot market in Washington
Tight inventory conditions persist in real estate markets across Washington, as we move further into 2022. There are more buyers in the market than there are homes for sale. This leads to increased competition and multiple-offer scenarios.
The real estate market in the Seattle area is beginning 2022 with incredibly low levels of inventory. And with prices expected to rise coupled with more affordable mortgages thanks to low-interest rates, it’s expected that Seattle’s market will be competitive this year.
In overall King County, the number of active number of listings in January 2022 is significantly lower than it was just 2 years ago. In fact, at the moment, there is just a 0.2- month supply of available inventory in King County, which is much lower than the 5- or 6-months supply that characterizes a balanced market. As such, buyers have fewer homes to choose from, making it a more competitive market.
Yet, in reality, most major cities across the state are well below what’s considered to be a normal or “balanced” housing market. And inventory will likely remain tight well into 2022.
Based on these conditions, it’s no surprise that housing analysts and economists are predicting a continued rise in home prices across Washington State. Homebuyers will want to prepare early and be ready to move quickly when the right property comes alone.
According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes has been below six months for the last few years.
Will you need mortgage financing to buy a home in Washington State? Sammamish Mortgage can help. We offer a wide variety of mortgage programs and tools with flexible qualification criteria. We serve the entire state, as well as the broader Pacific Northwest region that includes Washington, Oregon, Colorado, and Idaho. Please contact us today with any financing-related questions you have.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.