Seattle isn’t just a hip city – it’s a city full of opportunity and a great place to settle down. When you think of buy a house in seattle, here are some things you need to know.
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Housing stock is very limited
In May, Seattle only had a 0.49 month supply in the real estate market, according to Housing Tides, an EnergyLogic company. This corresponds to a decrease of 1.15% compared to the previous year.
To be clear, limited inventory isn’t just a problem in Seattle. Rather, there is a shortage of homes available to buy at the national level. In May, the national inventory was just 1.13 months. In context, it takes an offer of 4 to 5 months to create a balanced housing market – one that doesn’t necessarily favor buyers over sellers, or vice versa.
Because Seattle housing stock is so low, you may have trouble finding a property that falls within your price range. Or you are having trouble finding a home with the features you want.
Seattle real estate prices have risen
In February 2016, the average home price in Seattle was $ 405,000. In May 2021, the average home price reached $ 738,000. That’s a 26.2% year-over-year increase, which is a pretty substantial jump.
Of course, real estate prices haven’t just gone up in Seattle. Due to the low supply and high demand, property values are increasing at the national level. But given that average price tag of $ 738,000, buying in Seattle right now can be a boost from a financial standpoint.
Mortgage rates are still competitive
Seattle property prices can go up and inventory can be extremely limited. But Mortgage rates remain at competitive level.
At the time of this writing, this is the average Interest rate in Washington state for a 30 year fixed loan is 3.16%. Meanwhile, the average mortgage rate for 15 years is 2.47%. These prices are pretty low historically and could allow you to buy a home that is on the more expensive side.
In fact, if you take out a 30-year fixed-rate mortgage at 3.16% on a $ 738,000 home that you reserve 20% on, your monthly principal and interest payment is $ 2,539. However, this number does not include others Homeownership costs, as:
Should You Buy a Home in Seattle Today?
To buy a home in Seattle, you will need a fairly large down payment, depending on the real estate values. You also need to make sure that you can swing your ongoing Mortgage payments.
To see if you’re ready to buy, ask yourself the following questions:
- Is my credit-worthiness in shape?
- Do I have a low level of existing debt?
- Can I swing 20% down on a Seattle home? And if not, can I afford it? private mortgage insurance in addition to my mortgage payments?
- Is my job stable?
- Did I do my research and found Seattle to be where I want to settle down?
If the answer to all of these questions is yes, then maybe now is one good time to buy a homeespecially when the mortgage rates are so competitive. That said, there is nothing wrong with holding back if you prefer to look for a home when you have more properties to choose from. The low mortgage rates are likely to go away for a while, so you certainly don’t have to rush your decision.