Hi Friends,
We often have clients ask us “How do I make sure I don’t overpay?” And our truthful answer is “By buying NOW.” When you find a home that fits your budget and feels like home, don’t hesitate. Make it happen.
One of Sarah’s buyers was super concerned last fall that the market had peaked and they wouldn’t gain equity. They could sell right now for $40,000 more.
Similarly, Don and I were concerned in 2015 that we were buying at the height of the market. We lived there the rest of his life, and I sold last spring for almost double what we paid 8.5 years before.
Even with rates rising, prices still rose 4.3% nationally in 2023 and 4.9% locally. Looks like 2024 will end with about the same 4 to 5% appreciation (rising prices), and we expect 2025 to behave about the same.
Here’s the rub. Rates will not always stay here. But values/prices are not likely to fall. Especially in the greater Seattle area. We have too many people still moving into the Pacific Northwest.
The median price right now in our NWMLS is $555,000. Want to wait for next year? Add 4.5% to that price, because you’ll pay that much more for the same house. A $555,000 house today will cost $582,750 next year. Do you want to pay $27,750 more next year? Even if rates end up in the low 6’s, that won’t offset the higher price.
What’s the price range you think you’ll be happy in for a home of your own? I know you’ve been looking. If you’re thinking homes cost a lot now and want to wait, make sure to factor in the cost of waiting. If you can make the move now, by all means do your bank account a favor and let’s talk.
Not planning to move anytime soon? Who’s the next person you know who wants to be sure they’re making a smart choice and being wise with their resources? Call us at 425-422-7372, email us at Sandy@SandyandCompany.com and put our knowledge of the market and our years of trusted advising to work for you and the people you care about.
Blessings,
Sandy and Sarah