No one has a crystal ball with which to see the future with 100% clarity. Fortunately, however, seeing the future with perfect clarity isn’t something real estate professionals are required to do, nor is it something buyers or sellers need in order to make wise decisions.
If a person puts in the time and conducts enough research, it’s possible to make well-informed decisions regarding virtually all aspects of real estate. For instance, if a person researches the market well enough, he or she can make a reasonable offer on a given property in a given area; and if that offer isn’t accepted, that person can use his or her acquired knowledge to negotiate the best possible outcome.
The point here is that being well-informed is very necessary in the real estate world, but seeing the future isn’t necessary. As long as you do your homework, your transaction should come out alright. This article is part of that process.
In this article, we will discuss some of the expert predictions for the real estate market in Washington State in 2024 and beyond. We will look at the State of WA as a whole, as well as a few specific markets within WA State, which warrant attention.
Home buyers, sellers, and others interested in the real estate world in WA State should start looking to the experts in order to get a sense of what’s likely to happen. We will go over predictions for several key aspects of the real estate market in WA State over the next year.
Expert Predictions on WA State Home Prices
As of January 2024, the State of Washington as a whole had a median home value of roughly $566,052 and is still classified as a relatively healthy market, according to real estate research firm Zillow. This can mean that buyers in WA State may be at a higher-than-average likelihood of encountering a bidding war for a given property.
During the upcoming 12 months, home values in WA State are expected to slowly increase, though experts cannot be sure by how much. It’s difficult for experts to forecast where home prices will be in the near future, and therefore how it will affect the real estate market and home prices.
That said, homebuyers in Washington are skeptical of buying at this time due to high home prices coupled with high mortgage rates.
If we look at expert predictions for three key markets within Washington State, we can get a picture of the WA State real estate situation in a more nuanced fashion. As of January 2024, the city of Seattle had a median home value of roughly $824,264 and is also still classified as a hot market. Again, it’s difficult to predict where home prices will be over the upcoming 12 months.
Another key market, Bellevue, has a median home value of roughly $1,300,803 and is considered a healthy market. As of January 2024, the city of Tacoma has a median home value of about $462,500 and is also classified as a competitive market. Buyers in Tacoma may still face a bidding war because they’re very likely to encounter a competing offer on any given Tacoma property.
Seattle, Bellevue, and Tacoma are three critical markets in WA State and give critical insight into the WA State real estate market as a whole.
Related: WA State Housing Forecast
Expert Predictions on WA State Mortgage Rates
The interest rates which apply to WA State customers are closely tied to interest rates across the nation. For this reason, WA State buyers should be keenly aware of interest rate information at the national level.
According to the Mortgage Bankers Association, 30-year fixed rate loans will end 2024 with mortgage rates around 6%, down quite a bit from over 7% we’ve seen last year. Keep in mind, expectations can change quickly, and while it’s easy to predict things will remain the same historically, that is rarely what actually happens.
Expert Predictions on Other WA State Real Estate Developments
The Seattle market has seen a home construction rebound this year, as predicted by experts. Those same experts foresee that the Seattle market will remain relatively strong in terms of price stability and attractiveness to investors. And the experts highlight a number of reasons to support this prediction: a pick-up in strength of the Seattle job market, projected returns for investors, job density, and other factors as well.
The real estate market in Seattle will continue to present many attractive opportunities for investment. Nothing is ever foolproof, but the Seattle market will continue in 2024 to be a relatively safer environment for investors compared to other markets around the country.
Connect with Sammamish Mortgage
If you have questions about mortgages or are ready to apply for one, Sammamish Mortgage can help. We’ve been providing mortgage programs to customers in Washington, Oregon, Idaho, and Colorado since 1992, and we’d love to help you. If you’d like additional information on the predictions for the WA State market in the new year, contact us today.