In This Market Should You Wait To Buy?
We are frequently asked the question, "is now the right time to buy"?
With the median sold price on the Eastside increasing over 30% in the last year it certainly can be hard to believe that now could be a good time to buy. But when looking at the bigger picture...now, as in right now, can present a good opportunity to buy. Thinking we're a little crazy?! (LOL!)...here are a few key facts and trends that we're sharing with our clients/friends on the daily...
1. Rents are going up! If you're currently renting you've likely seen your rents go up - the average forecasted increase over the next year is 10%. Why continue renting and paying more rent when you could be building wealth! Study after study has demonstrated that the single best way to generate wealth over time is to own your own home! And BTW, if you're a homeowner and want a good investment opportunity, Condos & Townhomes continue to be reasonably priced in comparison to houses. With rents going up your returns on investment could be great!
2. Average interest rates are lower than a year ago! When considering inflation, current interest rates are kind of like "free money". We don't expect these amazing rates to last forever, it could be a good time to lock in an exceptional rate and begin building wealth in your new dream home!
3. Home appreciation is expected to continue, big time! Over the last 10 years, median sales prices of homes on the Eastside have gone up 10.4%. You might be saying, "well, this last year is driving that number up". It most certainly is, but even if you exclude this last year the average is still 8%, which equates to over $200K in incremental equity each year for the median home. A hot off the press, national research study conducted by Porch predicts Seattle area homes will increase a whopping 18% in the next year, holy smokes batman! Will this trend continue? With companies like Amazon adding 25,000 jobs and many others adding jobs to the Eastside we believe we are well-positioned to continue the growth trends into the future.
4. Your home isn't "perfect" for your current situation! As we say at Team Skally, now is the best time to "love where you live". We have quite a few client examples in support of this point. For example, perhaps you're a newly empty nester and you've remained in your home primarily for the benefit of the kiddos. You've loved your home, but it's too big for your current needs and frankly doesn't have all of the amenities you've wanted for some time, like living on a golf course or closer to a lake! Yes, it's possible to capitalize on your home sale now during the hottest seller's market ever recorded and then buy your dream home for less cha-ching! Now could be just the perfect time to literally "trade your places" and pocket the net proceeds!
5. "Work From Anywhere" (WFA) allows you to expand your horizons! If you don't need to commute like you used to, why not move out a little farther than you would have considered and get more bang for your buck! We have clients who literally just did this, buying on the amazing Lake Tapps Island for a very reasonable price. Have you heard of Lake Tapps Island? It's not too far and offers an incredible neighborly community with all of the amenities you've dreamed of...lake living on a golf course with walking trails and a clubhouse for dinner and drinks!
We hope some of these ideas and strategies help you if you're considering buying during this "seller's" market. And whether you're buying or selling, near or a little farther out, Team Skally is here to make your dream home wishes come true!
We are your home team!
Until next time, cheers friends!
Matt & Christina
Matt & Christina are Team Skally, top real estate agents in the Seattle Metro with expertise in luxury homes on the Eastside including Bellevue, Newcastle, Mercer Island, Renton and Issaquah. Their client testimonials say it all - they deliver exceptional service and record-breaking results. Recognized as top agents on social media by Property Sparks, Diamond Award finalists for best client service and regularly featured in online and print publications including Newcastle Life Magazine. In addition to serving clients, Matt and Christina love family time with their two boys and Leo, the Goldendoodle, as well as volunteering in the community.