If buying a home in Washington State is on the agenda this year or next, you may want to consider getting in the market sooner rather than later before the spring season heats up..
Are you planning to buy a home in Washington in 2022? It might work to your advantage.
For example, experts suggest that home prices in Washington will continue rising at a healthy pace over the next 12 months. So, buyers willing to get into the market sooner rather than later can take advantage of lower prices of today before they really start to pick up.
With that being said, home buyers across Washington State will probably feel more urgency in 2022 — compared to years past. Mortgage rates are still relatively low, making home buying more affordable, but rates are on the rise.
Depending on where you plan to buy, you could be facing higher prices as the months progress this year. They have risen in recent months, and home prices across Washington continue to climb steadily. So many buyers are feeling the need to move quickly.
A Sense of Urgency for Washington Home Buyers This Season?
The latest reports from real estate companies and listing services show that home prices in the state continue to climb. So those planning to buy a house in Washington this winter might want to expedite the process, if at all possible.
Here are three reasons why a sense of urgency might be warranted:
1. Home prices are almost certain to continue rising.
The median home price for the state of Washington rose to around $593,897 in March 2022. That was an increase of 24.1% from the same month last year.
And with the current supply-and-demand situation in real estate markets across the state, it appears likely that prices will continue climbing throughout 2022. Many markets across Washington State have less than a 1-month supply of available housing inventory.
Right now, Washington has about a 2-month supply of housing, which is far lower than a balanced market that is characterized by about 5 to 6 months’ worth of supply. Washington home buyers might want to consider buying sooner rather than later, to avoid higher costs toward the end of the year.
Related: Experts say it’s not a housing bubble
2. Mortgage rates are still very low.
In late March 2022, Freddie Mac reported that the average rate for a 30-year fixed mortgage loan sits at 4.16%. That’s still quite low, even compared to the lowest point of the year when rates dipped as low as 2.65% in January 2021.
Over the last few weeks, average 30-year mortgage rates have been fluctuating in the upper 3.0% range. Low mortgage rates make home buying more affordable. And by taking advantage of these low rates today coupled with a traditionally slower time of the year for sellers, now may be a great time to buy before the heat of the spring real estate season picks up.
This is another trend to watch, if you’re thinking of buying a home in Washington in 2022. There is a chance that home prices will continue to rise and mortgage rates will likely continue to increase as they have been over the past few months. Once again, it makes a strong case for buying sooner rather than later.
Related: 6 factors that determine your rate
3. With fewer homes available, buyers should start early.
If you’ve been following real estate market trends lately, you probably already know that inventory is tight right now. There’s a shortage of supply in real estate markets across Washington State — and especially within the Seattle metro area.
Recent MLS reports show that housing inventory is tightest at the lower end of the price spectrum (i.e., “starter homes”). That’s because there are more buyers competing within that range. But things are tight up and down the price scale.
This gives home buyers a good reason to start early, when shopping for a house in Washington. If your goal is to find a property and make an offer during the winter, you’ll want to start now. It can take longer to find a house these days, due to the supply situation.
Curious About Home Loans in Washington?
If you are in need of the assistance of a seasoned mortgage broker, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We have been serving the entire state since 1992, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria, and we’d love to help. Please contact us if you have mortgage-related questions.