Summary: Are you planning to buy a home in Washington in 2020? If so, you’ll to get up-to-speed on the local market to help you make a sound purchasing decision. Here are three reasons why you might want to enter the market sooner rather than later.
With the winter holidays upon us, home buyers across Washington State are now setting their sights on 2020. And many are wondering if they should buy now, in early, or later in the year. Here are three motivations for buying a house in Washington sooner rather than later.
Buying a Home in Washington in 2020: Now vs. Later
There are a few good reasons why buyers may want to buy a home sooner in 2020 rather than later, including the following.
1. Mortgage Rates Are Very Low
Buying a home when mortgage rates are low is a great reason to buy. Even the difference of one percent makes a huge difference on the amount of savings that you can experience over the life of your home loan. And right now, mortgage rates are near all-time lows, making today a great time to get into the real estate market.
As of the third week of February 2020, the rate for a 30-year fixed-rate mortgage is 3.47%. That’s much lower than the rate was even just last year, which means locking in right now can translate into major savings over the long run.
Freddie Mac predicts that the rate will remain under the 4.0% mark throughout 2020, which is great news for buyers. More specifically, the agency expects rates to average 3.8% over the year.
Of course, this is just a forecast. And these kinds of predictions have been inaccurate in the past. But the general consensus among economists is that mortgage rates will remain low throughout 2020, hovering near historic lows.
So that’s one reason to consider buying a home in Washington State sooner rather than later. Buyers who shelve their plans until later in 2020 could encounter higher borrowing costs.
2. Home Prices Still Moving North
Rising home values are another factor that could affect Washington home buyers in 2020. This is especially true in the Seattle metro area, where prices have risen sharply in recent years. But the trend could affect the entire state of Washington, to some degree.
Right now, the real estate market in the state of Washington is hot. Over the past 12 months, home prices have increased by 4.3%, according to Zillow. And they are expected to continue along the same pace, increasing another 4.6% over the next year. Right now, the average home price in Washington is about $413,000.
This is another big consideration for those planning to buy a home in Washington in 2020. Postponing your purchase until later in the year could cost you.
3. Low Inventory in Washington Housing Markets
Real estate markets across the country have experienced inventory shortages over the last couple of years, and nowhere is this more evident in the Seattle area. All major cities across Washington have suffered from supply shortages. But it’s most pronounced in Seattle.
But these shortages aren’t limited to the Seattle area — they will affect home buyers across Washington State in 2020. According to the Northwest Multiple Listing Service (NMLS), the 23 counties serviced by the entity have less than a 2-month supply of homes available for sale. And the numbers are even lower in certain areas, including Puget Sound, where the number dips to 1.6 months.
Need a Home Loan in Washington?
Are you considering a home purchase in Washington State in 2020 and need a loan to finance it? Sammamish Mortgage can help. We’ve been helping home buyers across the Pacific Northwest for more about 28 years and offer highly competitive rates on a variety of mortgage programs, including FHA, VA and conventional. Please contact us if you have questions, or if you would like to receive a rate quote.