Summary: Washington State continues to experience steady home price gains, according to recent reports. In this article, we will go over recent market trends in the Washington housing market in 2020.
Certain centers in Washington State, in particular, are seeing very hot housing markets, including Tacoma, Federal Way, and Kent, among others, as a result of low inventory and high demand. These are a few of the Washington State real estate market trends we are tracking, as we head further into 2020.
Washington State Real Estate Market Trends: Spring 2020
With the spring home-buying “season” right around the corner, buyers typically enter the real estate market in higher numbers. That’s usually what happens this time of year.
What will they find? Limited inventory and higher prices. However, with the current coronavirus pandemic affecting all aspects of the economy – including the real estate market – it may be tough to decipher how the spring real estate season will fare. Only time will tell if the market will be negatively affected. Those are the prominent trends in the Washington State real estate market right now.
1. Washington State had a large increase in home prices year over year.
According to recent data from Zillow, a real estate research company, home prices in Washington rose at a rate of 6.6% from April 2019 to April 2020. That’s an even higher rate of increase than the nationwide price hike of 4.1% over the same time period.
2. The median home value statewide is now over $428,000.
According to the latest data, the median home price for Washington State is now around $428,900, according to Zillow. Of course, it’s much higher in the Seattle metro area, but we’ll get to that in a moment. Washington State home prices are higher now than they’ve ever been before, even during the last housing boom. While they were expected to rise throughout the remainder o f 2020, the current health crisis may result in stagnated prices over the coming months until the situation is resolved.
3. Housing inventory in Seattle has fallen sharply over the last few years.
Seattle and the surrounding King County is an exaggerated version of the real estate market trends happening across Washington State in 2020. In many cities, limited inventory and strong demand are pushing prices north. And nowhere is this trend more apparent than in Seattle.
In fact, recent data suggests that Seattle’s housing inventory is only slightly above a 1-month supply. That’s much lower than what is considered to be a balanced market in which there would be 5- to 6-months’ worth of inventory available for sale.
4. Seattle median home price rises to over $767,000.
In Seattle, the median home price rose to $767,900 in April 2020, according to Zillow. That was an increase of 2.2% over April 2019. Seattle actually experienced a lull in the market from mid-2018 to mid-2019, but prices picked up since then. At the valley of home prices in July 2019, prices were $742,000, so they come back up quite a bit since then.
5. Mortgage rates keep falling.
Washington State real estate market trends have created a sense of urgency among home buyers planning to enter the market.
But while home prices have been rising in Washington, mortgage rates, on the other hand, have been following a steady declining trend since late 2018. According to the latest survey by Freddie Mac, the average rate for a 30-year fixed mortgage loan fell to 3.31% for the week of April 16, 2020.
With rates this low, it may be a great time for buyers to get into the Washington housing market to take advantage of lower rates before home prices rise even more. It’s also a great time for homeowners to refinance their mortgage and lock in at today’s rock-bottom rates.
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Have Questions About Washington Home Loans?
If you have questions about mortgages in Washington or are ready to apply for one, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington and serve the entire state, as well as Oregon, Colorado, and Idaho. We have many mortgage programs to offer qualified applicants with flexible mortgage criteria. Please contact us if you have mortgage-related questions.