According to Fortune, Seattle, Washington is one of the fastest growing real estate markets in the country. This is due to the fact that Seattle has been experiencing a population boom fueled by rapid job growth in technology and other industries. The Emerald City’s population is also the fastest-growing in the country. So much so that real estate development is having trouble keeping up with this population surge. Whether you’re looking for a condo, townhouse, modern home, craftsman home or just a new home, Seattle might be just the place for your next home hunting, especially if your business is related to technology.
But, when is the right time to buy a home in Seattle? Typically, you want to consider your personal preferences and market factors when making your decision. For example, you want to review your financial life and status to determine whether you’re stable and ready for the obligations that come with homeownership.
In this post, we’re going to help you understand when it’s the right time for you to get a home.
If you’re new to Seattle, obviously the market is new to you. So, you will want to work with Seattle real estate agents who understand the demographics of Seattle real estate. At the start of 2017, Seattle experienced a housing shortage, with about 0.4 percent of the homes in the city up for sale. Such a shortage may indicate high demand in the market, so it’s important to work with an experienced real estate agent who will be the first to know when a new property is put on the market.
Prices and mortgage rates are also dynamic and tend to be quite unpredictable in most cases. However, there’s a likelihood that prices in Seattle will continue to rise since the metro area seems to attract buyers from all over the country. Research by Zillow revealed that home prices in Seattle would rise by about 5 percent through January 2018.
Keep in mind that change in policies and regulations is also another thing to worry about. The strength of the economy is also an issue. But you can leverage the times when incomes are stagnant, and employment rates are high.
This is where you start. Determine how do you plan to live in Seattle. If your goal is to live in Seattle for more than five years, then it might be a great move. Most people with families usually make a long-term move. So, you should look at your family needs, education and work.
In most cases, you’ll need to have at least 20 percent down payment to qualify for a home loan. You should be financially capable of saving for that amount. You can also pay more to reduce your interest rate if you want to. Such a decision will require personal sacrifice, which can affect your lifestyle and demand certain budget adjustments.
If you want to buy a home with less than 20 percent down payment, you might need to get a Private Mortgage Insurance (PMI). While PMI is not a bad thing, it literally adds another financial obligation to your list. For example, if you pay a 15 percent down payment on a $350,000 home, you would have an additional $106.60 as your monthly PMI payments for 12 to 24 months.
Ready, Set, Buy
Well, timing is an important consideration when looking for buy in a home in Seattle. But you can make the whole experience less stressful by working with a real estate agent that understands the ins and outs of Seattle housing market. You also need to ensure that they have a good number of current listings, which you can review for a potential option.
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