While it's true that home prices have continued to rise throughout the Seattle-Metro area, there are also some new and interesting statistics to go along with rising median prices. Realogics Sotheby's International Realty recently released their second-quarter market trends report for 2018 and we wanted to share a few statistics that jumped out at us.
The record high housing prices in Seattle have been in the news for over a year and a half now. "Seattle's median home price of $830,000 is up 14 percent from a year ago and sets a record after holding steady at the previous high of $819,000 in March and April" states The Seattle Times. Despite new and increased inventory in May, single-family home prices continued to increase further, still - arriving at the current $830,000 median.
The home values in the Seattle area are at an all time high. The median price for a single-family home in Seattle is $777,000 and $950,000 on the Eastside. The Seattle Times recently reported that "Both Seattle and the Eastside have smashed home-price records as the region's market continues to be brutal for homebuyers even before the peak spring season kicks off."
While the S&P CoreLogics Case-Shiller Home Price Index showed San Francisco and San Diego starting to catch up to Seattle for single-family home prices in the months of September and October 2017, our Puget Sound region ended the 2017 calendar year at a 16th consecutive month leading the nation. "In December, Seattle led the way with a 12.7 percent year-over-year increase," states The S&P Dow Jones official report.
Winter in real estate is notorious for lower inventory, and often lower prices, but it may just be one of the better times of year to buy. Most real estate news during the winter is akin to lowering median prices, a slow in construction, and a dip in overall housing inventory. However, even with all of these things popping up in news headlines across the nation; Seattle's housing market continues to come out on top.
With the holidays over and everyone seemingly exhausted from a season-long of gift giving, purchasing a new home in the new year may seem like the last thing on anyone's to-do list. That being said, there are many trends and reasons that 2016 may, in fact, be the year to buy!
MSN Money has 4 reasons why this is your year to invest in real estate:
1. Climbing rents
2. Home prices are expected to level off
3. Last chance for record-low interest rates
4. More home listings
What are the hottest cities for Millennials to buy homes in for 2016? A recent Realtor.com article outlines, "Where's Hot - and Where's Not - For Home-Buying Millennials" in the coming year. As Yuqing Pan writes millennials are making their presence known in the housing market: "numbering 43.5 million, the older group of millennials (aged 25 to 34) makes up 13.6% of the U.S. population but fully 30% of the current population of existing-home buyers."
Rather than try to move to "trendy" cities with high price tags such as New York City and Los Angeles, "young home buyers are increasingly turning to cities that are relatively affordable and have lots of jobs and maybe even a trendy atmosphere all their own." And one of those more affordable cities for 2016 is likely to be Seattle.
With a median listing price of $398,000 and a 14.9% population share of older millennials, Realtor.com places Seattle 7th on their list of 10 cities, writing that "the headquarters of Microsoft, amazon, and many other tech companies large and small" mean that there has been "an influx of educated, young tech workers, which contributes to its uniquely cool culture." And of course, don't forget about Starbucks of course!
It's no secret that rents are on the rise; it can certainly feel daunting to even think about purchasing a home when so much of your income goes to paying rent. Fear not! Realor.com, recently came out with a way to be able to start stockpiling and saving, even amidst growing rents.
Every little bit helps! Some of your everyday expenses add up; limiting some expenses that could be deemed 'frivolous' can easily be put towards saving. Other actions such as finding places to rent that don't have such limiting rental obligations are also essential!
According to a recent article in Business Insider, some markets favor millennials purchasing rather than renting. Based on general findings by Trulia, the article says that "buying is 36% cheaper than renting on a national basis, based on September home prices. That's the best differential since 2012 when it was 38% cheaper to buy than rent. Buying is also cheaper than renting in each of the nation's 100 largest metros." A study of millennials, however, yields a different outcome.
- "It's 23% cheaper for millennials to buy than rent in 98 out of the 100 largest metros."
- "It's cheaper to rent in Honolulu and Silicon Valley."
- "The South and Midwest housing markets are great for young buyers."
- "Rising prices and rents in some markets spur big swings in the rent vs. buy math."
So where does Seattle stand? Well, according to the chart below, mortgage rates would have to rise by 1.35% in Seattle in order for renting to become cheaper than buying:
Summer is winding down and the fall leaves are nearly upon us. Football season begins again, the kids are back in school, and there is a certain crispness in the air.
While it may seem logical that people would be reducing their spending after summer vacations and preparing for the upcoming holiday season, this particular September may prove to be the best time to buy a house!
So you’re perusing listings and finally you find it: Staring back at you from your laptop screen is the perfect place you’ve been dreaming about.
It’s in the right location, has all the amenities you’re looking for, and still, somehow, fits in your budget. There’s just one problem: It’s pending sale.
Does that mean you’re too late? Is it entirely hands off? Or do you still have a shot?
While it may seem incomprehensible for the generation coming of age in the Great Recession to be purchasing homes, the rate at which rents are rising makes renting to be a less economical option for a growing number of millennials.
While nationally the median age at which people are buying homes is rising, the situation is just the opposite here in Seattle. Despite the existence of student loan debt being the main hurdle for most millennials, many here in Seattle work in the tech industry, which allows them the ability to pay down debt quicker. Coupled with historically low interest rates on home loans and too high of rents, the ability for Seattle area millennials to purchase a home will only increase.
It's no secret that the Millennial generation is coming into the home-buying market in full force. And it is also no secret that this is the first generation to have grown up their entire lives with the computer and Internet at their fingertips. As such, the demand for innovation and ingenuity for the real estate sector has never been higher.
In a recent article from Inman, a real estate news source for realtors and brokers, Jason Turner breaks down what brokers should and shouldn't be doing amidst the growing rise of new media and marketing strategies.
The more open and approachable a broker is, the more appealing to a Millennial buyer. Despite such innovations as being able to search for homes from the convenience of their smartphones, Millennials are really searching for a personal touch from a dedicated broker that is going to be able to mentor and be available to them with indispensable knowledge from firsthand experience.