As you let go of 2017, look forward to 2018, and reassess your life and goals, you may wonder what’s in store for the Seattle real estate market over the next year. 2017 was an exciting and wild year; Seattle was named the hottest real estate market in the country and home prices rose 13.4 percent, which is more than twice the national average rate of 5.9% for home price growth.
So, if you are looking to buy or sell a home in the greater Seattle area, what can you expect from the market over the next year? First, you should find a great agent who can help you. Second, check out these predictions for the coming year.
1. Lower mortgage rates will make it easier to buy a home.
Long-term mortgage rates recently fell from 3.99% to 3.95% (a year ago the averages rates were 4.20%). The average rate for 15-year fixed-rate mortgages also recently fell from 3.44% to 3.38%. According to the Seattle times, these relatively low rates can help homebuyers offset the rising costs of real estate and make it easier to afford a home.
2. Seattle, in case you haven’t heard, is very cool.
According to Redfin, Seattle is home to 75% of the country’s hottest neighborhoods. In 2017, the Grass Lawn neighborhood in Redmond earned the title of most competitive neighborhood in the country; 73% of homes here sold for more than the original asking price within just six days of being listed. The second and third most competitive neighborhoods in the country were, respectively, Pinehurst in Seattle and Crossroads in Bellevue. Rainier View in Seattle and Newport in Bellevue earned the fifth and sixth spots on the list.
Oh, and also, US News listed Seattle as the sixth best place to live in the US, due to is mild weather, the presence of thriving corporations like Google, Amazon, and Starbucks, and resident’s relatively low commute time.
3. Rent will continue to rise.
Seattle area rents are expected to rise 3.5% in 2018. In particular, the fastest growing Seattle neighborhoods are expected to be Totem Lake, Belltown, Houghton, Riverview, and Kingsgate. The fact that is becoming increasingly expensive to rent in the Seattle area suggests that now is a great time to invest in a home and start building equity.
4. The seller’s market will power on.
Real estate experts around the country predict that housing inventory will remain low for most of 2018. One expert predicts that 30% of homes will remain on the market for just under two weeks. This means that, if you’re considering selling your home, you should do so now, while buyers are still jumping at the opportunity to find property.
However, experts also predict that inventory will increase by the fall of 2018. The bottom line: if you are looking to buy a new home, hang in there, and if you are thinking about selling your home, do it now, before the market grows more competitive.
5. Millennials will continue to change the market in exciting ways.
The Washington Post they continue to buy homes, millennials will fuel the formation of the “urban suburban.” This new type of suburb prioritizes walkability, quality schools, and urban amenities like restaurants, bars, and grocery stores.
Additionally, because millennials love technology, they will most likely use this technology to find creative ways to handle the rising home prices, such as finding roommates and using apps like CoBuy, which supports group home buying.
For more information about the 2018 real estate market, be sure to get in touch with Pickett Street at (425) 502-5397 or info@pickettstreet.com.