It's no surprise that as our days get shorter, our Seattle Real Estate market slows down a bit. Many buyers are exhausted from the hectic Spring & Summer months! Between October and February, our attention is focused on tackling the holiday season, devoting our Sunday's to Seahawks games and family time, and snuggling by the fireplace on these blustery Northwest nights.
With that said, if you and your family are in the market to purchase a home, I would recommend buying sooner, rather than later. Here are four reasons to buy this Winter:
1. Prices Will Continue To Rise. On the Eastside, home prices are up 9% year over year; The Seattle prices are up 9.1% YOY. The KCM crew just released a market report that explained, "The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released projects appreciation in home values over the next five years to be between 11.2% (most pessimistic) and 27.8% (most optimistic)." Home values will continue to appreciate for years. If you buy now, you start earning now.
2. Mortgage Interest Rates Will Increase. This weekend, our 30 year Conventional rates were hovering at 4.0%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of REALTORS are in unison projecting that rates will be up almost a full percentage point by the end of next year. Even the smallest increase in the rate affects your buying power.
3. Whether you Rent or Buy, You Are Still Paying a Mortgage: As human beings, we must consume housing whether we rent or buy. Rents have continued to increase nationally, so it's time to stop paying a landlord and a rate of return. Owning makes more financial sense.
4. It's Time To Live The Life of a Homeowner: When someone makes the decision to buy, they discuss two important factors — the price of the home and the current mortgage rates. If both are increasing, it may be best to start placing your focus on homeownership. Essentially, you could pick your schools, your neighborhood, the type of privacy surrounding you, and have the ability to make your own renovations.
If you or someone you know is looking to buy (or sell) real estate, please don't hesitate to reach out to me.