The Seattle real estate market continues to accelerate faster than almost every market in the country. That’s great news for home owners, and not so great news for home seekers. I believe the Seattle market will continue to thrive over the next few years, and I am advising home seekers to buy sooner rather than later.
Interest rates are still close to record lows (around 3.75% on average), which is a strong incentive to buy a home now. Even if interest rates increase by only 0.5% over the next year, a buyer that waits to buy will pay an additional $30,000 in interest over 15 years (assuming an initial loan of $400,000). Zillow is projecting an average value increase of 8.1% for Seattle homes by July of 2017.* Based on those facts and projections alone, it makes sense for home seekers to buy now.
With the large number of major corporations (Expedia, Costco, Microsoft) headquartered in the Seattle area, the job market is likely to stay strong, which should help the real estate market grow. I also expect Seattle’s tech companies to continue to multiply. When companies like Amazon bring some of the brightest minds in the industry together, they often decide to join forces and start their own businesses.
Like Zillow and a number of other local economists, I am optimistic about the Seattle real estate market going forward. Of course, I acknowledge that no market will continue to go up forever, but until I see warning signs that the Seattle market is turning, I will continue to advise my clients to buy. There are deals out there, and I have multiple strategies to help you find them. Contact me today to get started!
*Zillow Seattle Projection: http://www.zillow.com/seattle-wa/home-values/