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A pressing issue on the minds of anyone looking to buy a house is the price of the home. Once a person has narrowed down what state and what city they want to buy a home in they get to start the exciting process of purchasing a home.
Sometimes the prices of these homes come as a slap in the face for those that have not prepared themselves. When looking to buy a home in Seattle it is important to stay up to date on market trends and pay attention to when the prices are at their lowest.
Real estate prices are always changing. Regardless of the state, city, or neighborhood, there are many factors that go into these fluctuations. Homeowners want prices to keep rising so they can sell their home for maximum profit. While home buyers are waiting for the market to bottom out so they can make a purchase at rock bottom pricing and watch as the price rises over the upcoming years. The problem is finding the perfect time to sell or to buy.
Current residents in Seattle know that the real estate market is considered a hot market. In the last ten years, Seattle has seen huge price changes.
In fact, until 2018 houses were appreciating at high rates. Homeowners felt elated. They assumed this trend would continue and they could cash out at the optimum time. It does seem that the best time for a homeowner to sell in Seattle was in 2018 though.
The new year saw a marked difference in the Seattle real estate market. For the first time in years, houses are being sold at a price that is under the listed value. With Seattle leading the trend of a hot market some speculate that this could be the start of a nationwide downturn of the market.
It is startling to some homeowners and home buyers how quickly the market has changed. Although every market hits its tipping point. Six months prior to the new year homeowners were selling their homes at least six percent over their listed value. Now well into the new year, they are seeing the opposite. Homes are selling for more than six percent less than the listed value.
When talking in percentages it can be hard to understand the gravity of this change. Six percent does not sound like a huge difference on paper. However, factoring the average costs of the homes in the area and that six percent could mean a difference of forty-thousand dollars for the homeowner that is trying to sell their home. A huge chunk of change, especially for those that are selling to get out of a mortgage. The average price for homes selling has currently dropped by one hundred thousand dollars.
Considering how the Seattle market has behaved in the last few years the current average value of a home when it sells is just under six-hundred and fifty thousand dollars. Which puts the average cost per square foot at just under five hundred dollars. Compared to some areas where prices are much less for buyers this can come as a shock for those that do not know the Seattle market.
Studying the average of the buyers who are making purchases in Seattle the market sees that the average income for the household is under seventy thousand dollars. The past market trends showed that there were more people looking to buy a home in Seattle than there were people looking to sell.
This can be seen in homeowners getting over their asking price. When there are fewer homes than buyers the buyers have to make competitive offers. These competitive offers often drive buyers to make an offer over the asking price to sweeten the deal for the homeowner and win out against competing buyers.
Within the last ten years, Seattle has seen huge real estate appreciation rates, over fifty percent which accounts for each home appreciating around four percent each year. At this high of a rate that put Seattle within the nations ton ten percent for real estate appreciation. Making it a great place to own real estate for those that were able to make a purchase when the prices were low.
There is some good news for the homeowners who are disappointed at these dropping prices. The further north or south a neighborhood is in Seattle the less likely these prices are dropping. These neighborhoods are still seeking homes slightly increase in price. The neighborhoods are on average are a lower price than that of the more expensive homes that are seeing significant drops.
Homeowners have noticed the trend of dropping prices. There were more buyers than homes available in previous years and that is changing. The homeowners are looking to get out of these properties when they can still make the maximum profit. This is good news for buyers who want to invest in a property when it is at a lower price.
With more properties for sale in a neighborhood, buyers have a higher chance of making a reasonable offer and getting it accepted. Buyers have more homes to choose from and homeowners are now competing against each other to find a buyer. All real estate markets fluctuate between being a seller dominated market and a buyer dominated market. In either case, one of the parties is at a disadvantage until the market changes.
A buyer dominated market gives the buyer more power in negotiations. This can translate into lower prices, homeowners taking a larger portion of closing costs, and even better terms on the offer. The key is for buyers to wait it out and find a homeowner who understands the need to negotiate. The change is new and some homeowners are resisting the change. Look for those that are pricing competitively.
Home buyers are also having a much easier time getting a mortgage. Banks are recognizing the buying power of these individuals and are allowing home buyers to get a mortgage with less than twenty percent down. Some lenders are dropping this down as low as five percent making it much easier for a home buyer to obtain a loan if they do not have a massive savings account.
For the first time in years, it is the buyer's turn to rule the real estate markets in Seattle. For anyone looking to invest in real estate the time is now. Starting to look for the right neighborhood and the perfect house can be a long process. While prices are likely to continue to decrease, waiting for the market too long could lead some buyers to miss their opportunity to buy low.
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