Throughout your search for a home I’m sure you’ve been asking, “What is the market doing?”. Let me try to answer that for you. As an example, let’s look at this chart of closed sales in Edmonds over the last year.
In the last year, the median home price in Edmonds has risen from $577,379 to our current $620,000 with a peak of $706,000. Does this mean the Edmonds market has dropped over $80,000? NO. This means that this is where the buyers are buying in any given month. That being said, the sellers will be feeling pressure to price their homes in the area where the buyers are willing to buy. This will have a slight downward pressure on pricing, probably through the end of the year. (I will be happy to provide the same figures for the town in which you are interested in.)
Now, let’s look at the interest rate. 30 year loans have increased from 3.95% in January to 4.72% in September 2018. (Freddiemac). Using our current $620,000 median price as an example, with 20% down payment the payment would be $2578.41 as compared to $2353.70 if purchased at the beginning of the year. Indications are that interest rates are NOT coming back down. Home values aside, just due to the interest rate increase, you have lost almost $50,000 in buying power!
Looking back at the real estate market trends throughout this year, millennials are a big demographic group and as they’re getting older and settling down, they’re getting into their home buying years. In addition, when millennials integrate further into the workforce with lasting and high paying careers, they become more comfortable with taking out mortgages.
Persistent demand from millennial buyers can be seen across the country from New York, Miami, to Los Angeles. In our Seattle area market, millennials play even a larger part in the real estate market because of our tech sector. Couple that with our population growth and foreign investors, it can be pretty much assured that 2019 will see another sizable increase in the housing market.
Based on these facts, perhaps buying now would be a smart move. Take advantage of the pause in the escalating values and get in before any more interest rate increases.
If you would like to know the value of your home or get these same figures for the area you are interested in, just reach out to me.
Author:Marcy Spieker Phone: 425-218-1158 Dated: October 19th 2018 Views: 409 About Marcy: ...
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"I used the realtor team of "Marcy & Orville Spieker", when purchasing a home in Edmonds, WA last fall. They were unfailingly helpful and professional. There were some unusual circumstances regarding this sale, and they were as punctual, supportive and resourceful and I could have hoped. I would highly recommend them to anyone seeking to buy or sell a home. "