Home prices in Seattle, Washington rose by double digits in 2016, according to multiple sources. And while the market might cool a bit in 2017, it will likely continue to outpace the national average. Recent home-price predictions for Seattle predict steady gains throughout 2017. Mortgage rates are expected to continue rising as well. This gives local home buyers a strong sense of urgency.
Seattle Home Price Projections for 2017
Yesterday, we published a collection of housing forecasts for Washington State in 2017. It included home price projections for 2017, for Seattle and other cities across the state. Here’s an abbreviated version of that table, which shows the 12-month outlook from the economists at Zillow:
|Location||1-year change |
(Nov. 2015 – Nov. 2016)
(Nov. 2016 – Nov. 2017)
A couple of things will jump out at you when viewing these projections. First, you’ll notice that the city, state, and national real estate markets are expected to cool in 2017, in terms of home prices. Additionally, the 12-month forecasts for both Seattle and Washington State are higher than the national outlook.
Home price predictions from other sources resemble those provided above. The general consensus appears to be:
- Seattle home prices will rise more slowly in 2017 than they did in 2016.
- Despite a slowdown, the city will still probably outpace the national average.
Seattle market predictions for 2017 suggest that home buyers who postpone their purchases until later in the year could end up paying more for a house.
And if that’s not enough to create a sense of urgency, there has also been a sharp uptick in mortgage rates in recent weeks.
Mortgage Rate Spike Adds to the Urgency
Earlier this month, the average rate for a 30-year fixed-rate mortgage loan shot up by 40 basis points (0.40%) over a two-week period. It also crossed a threshold. According to the weekly mortgage market survey conducted by Freddie Mac, 30-year loan rates rose above 4% last week, for the first time since 2015.
As the company stated in its November 23 announcement: “In a short week leading up to the Thanksgiving holiday, the 10-year Treasury yield rose 8 basis points. The 30-year mortgage rate followed suit, rising 9 basis points to 4.03 percent.”
If a picture is worth a thousands words, the chart below speaks volumes. It accompanied the latest release of Freddie Mac’s rate survey, and it shows the last 12 months at a glance. The large spike on the far-right side occurred over the last three weeks (starting around November 10th).
As far as forecasts go, both the Mortgage Bankers Association and Freddie Mac expect rates to rise gradually throughout 2017. This outlook, combined with the Seattle home price predictions mentioned above, sends a strong message to area home buyers: You might be better off buying sooner, rather than later.
Disclaimer: This article includes 2017 forecasts and price projections for Seattle, Washington. These statements and outlooks were provided by third parties not associated with our company. We have presented them here as an educational service for our readers.