The Sammamish, Washington real estate market has changed significantly over the last couple of years. Strong demand and a limited supply of homes have put upward pressure on prices. As a result, home buyers in the Sammamish area are encountering higher housing costs today than last year. Here are the latest trends and forecasts for the Sammamish real estate market in 2017 through 2018.
Sammamish Real Estate Market Trends and Forecast
Home prices in Sammamish have risen steadily over the last couple of years, with double-digit gains reported in the last 12 months alone.
According to the real estate information service Zillow, the median home value in Sammamish climbed above $900,000 in July of 2017. That marked a 13.2% increase over the same month in 2016. Additionally, the company’s long-range housing forecast for Sammamish, Washington predicts a gain of 7.8% over the next 12 months. This forecast was issued in July 2017, so it extends through the summer of 2018.
Zillow’s counterpart Trulia recently reported that home prices in Sammamish, Washington rose by more than $67,000 over the last year alone.
That’s the first thing you should know, if you plan to buy a house in the Sammamish area over the coming months. You will encounter higher housing costs compared to those who purchased earlier this year or in 2016.
Looking forward, the general consensus is that prices in Sammamish will continue to increase over the months ahead. Even though home-value appreciation is expected to slow down a bit, the current supply and demand situation will likely push house prices higher as we move into 2018.
Population Growth Increases Demand for Housing
Part of this growth can be attributed to the “Seattle effect.” With its strong tech industry and robust economy, Seattle is attracting residents from all over the country. And many of them are buying in surrounding cities. But the city of Sammamish itself also has plenty to offer, and these attributes contribute to steady population growth.
Over the years, Sammamish, Washington has found itself on numerous lists of the “best places to live” in the United States. It was even once ranked as the friendliest town in America by the publishers at Forbes. All of these factors increase demand for housing in Sammamish, and across the Seattle metro area. And this comes at a time when supply of homes is very limited.
In many parts of the metro area, there is less than a one-month supply of homes available. A “balanced” real estate market is said to have about five to six months worth of supply. So the current housing market still favors sellers over buyers, as far as negotiating leverage goes.
Mortgage Rates Also Expected to Rise
The median household income in Sammamish, Washington is much higher than the national median. Even so, a lot of home buyers in the area still have to use mortgage loans because of the high cost of housing. This means that mortgage rates are an important consideration for Sammamish home buyers. So what can we expect in 2017 and 2018?
According to the latest forecast issued by the Mortgage Bankers Association (MBA), the average rate for a 30-year home loan could rise to 4.5% by the fourth quarter of this year. It’s hovering around 4.0% right now, as of July 2017. Looking beyond that, the industry group expects 30-year mortgage rates to rise above 5% by around the middle of 2018.
So we have two forecasts that suggest the housing market in Sammamish is getting more expensive. Predictions by Zillow and other economists suggest that home prices will continue to rise over the months ahead, and that the city will continue to outpace the nation in terms of annual price growth. Additionally, we have a forecast from the economists at the MBA suggesting that rates will rise as well. So a strong case could be made for buying a home sooner rather than later.
Disclaimer: This article includes various predictions and forecasts relating to the real estate market in Sammamish, Washington. This information was provided by third parties not associated with our company. We have presented it here as an educational service to our readers.