Seattle Real Estate Market Update
Interest rates continue to stay low…Interest rates can have huge impact on your monthly mortgage payment, so with rates staying below 4% many first time home buyers, move up buyers and investors are taking advantage of historically low interest rates. Purchasing power is a lot higher for home buyers with low interest rates. This means homes that are priced right are selling quickly! We constantly hear about falling home prices, but interest rates play a major factor in the housing market.
Great properties continue to sell FAST…and have continued to sell fast through the winter and holidays. With so many distressed properties hitting the market regular sales are very much in demand. This is great for sellers who are not selling short. As a seller this should give you reassurance that if home is well maintained and updated, especially in a desirable neighborhood you will likely have a strong & fast offer in the Seattle Metro Area. Many well priced properties are currently receiving multiple offers. The outlying areas of Seattle are having a tougher time recovering.
Bank owned and short sales are still losing value…as a buyer this is good news because deals are still available. Don’t let this scare you from getting into a good property though, because again, interest rates make what you can afford more attractive than ever – creating a lot of value for you in the future. Buying a bank owned or short sale in a desirable neighborhood and putting in a little money to fix it up will add significant value to your home, because standard sales that are well maintained are sought after! Many buyers don’t want a project.
The rental market was red hot throughout 2011…but has flattened out in the winter of 2011 due to the low interest rates pushing first time home buyers into the market because it is now cheaper to buy than rent in some City of Seattle neighborhoods and areas just outside of Seattle. Due to the tax advantage of owning a home as opposed to renting – the value becomes even better for the rent versus buy calculation. Landlords and investors should follow the in-city apartment building closely and make wise decisions. Many investors continue to scoop up deals in all areas of metro area as they feel it’s a great time to purchase – which is another factor in keep the housing inventory low right now.
The farther out you go, the harder hit the market is… the days on market and the percentage in price drop from the height of the market is hitting the further out areas more than it’s hitting the great neighborhoods of Seattle & the eastside communities close to Microsoft.
