Seattle Real Estate News

The new year will bring Seattle a new housing market - one without the runaway prices and jaw-dropping bidding wars. Yet still difficult for anyone but the region's wealthiest  shoppers. Here's what real-estate forecasters expect for in 2023.  

After 2 years of home prices shoot up by double-digit percentages - prices are now on the decline driven by elevated mortgage rates and fear of rescission. 

Seattle-are prices could fall faster than the national trend with as much as 10% according to Redfin in part because Seattle home prices are already high and combined with current rising mortgage rates environment - this could push mortgage payments even more out of reach of prospective buyers. 

Could I afford to buy a house? 

The median mortgage payment here in King County is about $4,300 (median means half of mortgage payment is more than $4,300 and half of mortgage payment is less than $4,300).  Here's the current median prices in greater Puget Sound Area.  

By another estimate, Seattle homebuyers must earn $169,000 a year to afford the median home with 20% down payment.  With persistence inflation and stagflation in 2023 - elevated mortgage rates appear to be here to stay after super-low mortgage rates of between 2% and 4% during the pandemic years.  Fannie Mae projects rates will hover around 6% throughout 2023.  Check out our temporary rate buydown option to help you manage your rate for the first few years of your loan payment. 

Many people buy a house and stay put for years so they can build-up some equity when they eventually sell. However, this may not be the case for people who bought in the past few years (between Jan. 2021 through Sept 2022) and to sell in 2023 due to extenuating circumstances.

Posted by Sam Kader on January 8th, 2023 7:30 PM
Welcome 2017. What will you unfold for us?

1. Interest rate. The Federal Reserve in on tract to raise interest rates through the end of 2017. The National Association of Realtors predicts that we will see conventional 30 Year Fixed at around 4.6% by end of 2017 (in retrospect still not as bad but not as good as 2016). Higher rates translate to less purchasing power. Please ensure that these 5 items are fully underwritten and that your Pre-Approval is bullet-proof.

2. Price point. Selling your house in multiple-offer situation. Ensure that you receive a complete comparative market analysis (CMA) without getting priced out.

3. Location. Allowance for 30 minutes commute may translate to about 10 miles radius for your search. Overlay that area with your other wish list such as school system, outdoor activities, city center etc. and constraint these items with your price range.

4. Home condition. You can't have it all in today's market. Be prepared to compromise with your "must haves".

5. Market conditions. Know what the current market conditions and what projections are and seasonality and inventory play a part in the buying and selling process. For example real estate market is usually the busiest between May and August and taper off in the winter time.

Posted in:Housing Market and tagged: Housing Market
Posted by Sam Kader on December 31st, 2016 11:55 AM


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