Summary: The excitement of a new home purchase can sometimes override wisdom and prudence when…
Summary: All homebuyers want to know what their homes are worth, whether they’re trying to sell or whether they simply want to know how much equity they have in their homes. Likewise, buyers also want to know what property values currently are in Washington State in order to understand what they are up against and what they can afford. The question is, where will property values be as we head further into? And what about 2021? This article will help answer those questions.
Are you planning to buy a home in Washington State in 2020 or beyond? Or are you a homeowner looking to sell your home in the near future or may want to refinance? Either way, understanding what property values currently are and where they are expected to be in the near future can be very helpful. So, what are homes currently worth in Washington State? Will they appreciate, depreciate, or remain the same throughout the remainder of 2020?
Washington State Housing Market Trends: Will Home Property Values Increase in 2020 or 2021?
Since the housing market began to crash in 2006, property values across the country have been volatile and unpredictable. When examined at the state level, most of the 50 U.S. states have fully recovered from the housing market bubble that led to an economic crisis, though a handful still have yet to make a full recovery. The Washington State housing market is one of the few that has managed to recover its strength and home property values have been steadily increasing towards normalcy.
The peak Washington State housing market values occurred in the summer of 2018, but then stagnated for another year or so. Over recent months, however, home prices in WA state have been picking up the pace again and are once again on an upward trend.
Home prices are increasing in many states and cities across the US in 2020. In fact, the national housing market is considered to be very hot right now, according to real estate research firm Zillow, as is the housing market in Washington State. As such, you can consider prices to appreciate at a healthy pace throughout 2020 and into 2021.
Home Prices in Washington State
According to Zillow, the rate of increase in home prices in Washington slowed dramatically from mid-2018 to mid-2019 compared to the rate they were climbing from 2012 to early 2018. During this time, the price of homes in the state increased by almost 80%. But even though the climb stagnated for a few months, prices are back on an uptrend.
The current average price for a home in Washington State is $422,400. Prices have increased 5.7% over the past 12 months and are expected to climb another 4.9% over the next next from March 2020 to March 2021.
Having said that, the exact increase in property value may depend on where your home is located in Washington. If we focus on specific areas in the different Seattle neighborhoods we might get a better picture. Below are the median listing prices for four of Seattle’s more popular neighborhoods (median prices reflect homes placed on the market in the last eight months)
- Seattle – Capitol Hill median listing price: $701,900
- Seattle – Ballard/Fremont median listing price: $1,093,500
- Seattle – Columbia/Rainier Valley median listing price: $610,600
- Seattle – Queen Anne/Lake Union median listing price: $751,800
While the above numbers are quite high compared to other markets in the state, they are indicative of an expensive Seattle market. The city of Seattle has long had very high housing prices, especially when compared to other centers across the state and the country. So, it’s not surprising that the prices listed above are as high as they are.
Currently, the average home price in the city of Seattle is $755,600, while the average price for a home in the Seattle Metro Area is $535,100. Interestingly, the Seattle Metro Area housing market is hot right now, while the Seattle proper is currently considered cool, though prices are starting to heat up slowly.
If you own a home in Seattle, you can expect the value of your home to increase over the next few months. The amount that it will increase by will depend on exactly where you live. For instance, prices in the Capitol Hill area are expected to increase by 2.8% over the next 12 months, while home prices in the Columbia/Rainier Valley area are expected to increase 4.0% over the same time period.
Even though home prices may have dipped in Seattle over the last year, they are steadily increasing. The housing market in Washington has fully recovered since the housing crash over a decade ago, and the state seems to be doing better than many other housing markets in the United States. Washington State is currently seeing a hot housing market right now, so let’s hope it will continue to be into the near future.
Do Your Homework When Buying a Home in WA
If you are a Washington State first time home buyer, then it will be important for you to research the past market trends for neighborhoods you are interested in. Give yourself plenty of time to find the perfect home for you and your family, along with the best interest rates on your home mortgage Washington State brokers can offer.
Need a Mortgage in Washington State?
If you are a homebuyer looking to secure a mortgage to make a purchase in Washington state, Sammamish Mortgage is ready to help. We’ve been helping buyers in Washington and the rest of the Pacific Northwest get the mortgage they need to buy a home since 1992, and we’re ready to help you do the same. We offer many mortgage programs throughout Washington, Idaho, Colorado, and Oregon. Get in touch with Sammamish Mortgage today.