When Is the Right Time to Buy a Home?
Here’s some important advice for prospective homebuyers in Seattle.
I recently reached out to my network to see what people wanted to learn about real estate. The answers I received most often were, “When’s the right time to buy?“ and “When can I buy at the bottom of the market?” Today I’m discussing why the thought behind these questions might be a bit of a misconception and not necessarily the best strategy.
I recently had a conversation with someone who told me he was waiting for prices to drop by 30% before buying. I asked why he thought they would drop that far, and he told me that Seattle is a bubble that is about to burst.
Based on everything I’ve been seeing in the market, that’s just not true. Even back during the housing crash of 2009 and 2010, prices in Seattle didn’t drop much at all when compared to some other markets. We have one of the strongest economies in the country. You might not believe me, but it’s actually a great time to buy in Seattle. Here’s some data to back it up.
"It’s actually a great time to buy in Seattle."
CBS News just reported that over 200,000 people applied for Amazon jobs in a single week. That is going to lead to some amazing growth in our local economy. There are over 250,000 tech jobs in Seattle, and that number is growing by 10% year over year. We’re home to Microsoft, Nordstrom, Zillow, Facebook, and Google. That’s why Seattle is such a great place to invest in now.
The average rent for an apartment in Seattle is over $2,000 per month. That’s $24,000 per year that goes straight towards someone else’s mortgage. If you were to buy a $500,000 home after putting 20% down at 3.5%, you would have a monthly mortgage payment of around $2,250.
In six months or a year, not only will that home appreciate, but interest rates will be up, and the payment for that same mortgage will go up significantly. A 1% increase in rates doesn’t seem like a lot, but it is when it’s 1% of $500,000. The same monthly payment would jump up to $2,650 if you waited until rates increased.
I have people tell me all the time that they wish they would have bought in the past. Don’t make the same mistake. If you have any questions for me about buying a home or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.