Is Buying Seattle Real Estate Smart Right Now?
Buying Seattle real estate has become difficult. The good news is, those who live in the Pacific Northwest are not alone struggling to achieve home ownership. Cities across the nation are experiencing unprecedented offer competition and escalations which understandably has become stressful.
Since January 2021 the market here in Seattle has been extremely tough to navigate for buyers and realtors alike. With homes across the region escalating to the tune of 20% above list price it’s become important now more than ever for us realtors to fully understand the goals of buyer clients.
When beginning to analyze if it’s worth it to purchase a home in such a frothy market, ask yourself this simple question, “How long do I intend on owning this property?”
If your answer is three years or less I suggest re-considering your timing. If the answer is more like five – ten+ years than you should feel safe.
Consider the upfront appreciation you’d be paying to purchase right now in correlation to the annual appreciation rates in your area. Seattle’s appreciation rate over the past few years has hovered near 12%. Give or take. So to buy in Seattle today would essentially mean you’re paying nearly two years of appreciation at closing. You can see how this would take longer to break even on the investment.
This is just one of the many factors to consider when determining if buying is the right move for you. You may not even care about the investment. You may be like my parents and consider your home as your home, investment aside, this is where you live, not a means of making money. I get that mindset as well.
But if you’re getting hung up on the sheer cost of buying Seattle real estate in today, I encourage you to think about how long you see yourself owning that property. Five+ years and you have my support.
I hope this was helpful! I invite you to contact me with follow up questions.
-Peter Mullenbach
