All predictions I have discovered in in recent month indicate mortgage interest rates will only rise in the future, not decline to previous record lows. The charts below illustrate your buying power lost in every incremental rate increase; often the public focuses on price, when rates are in fact equally relevant in the event you are not paying cash for your next home.
As you can see from the graphs above, a seemingly mere 1 percent increase in rates dramatically reduces your purchasing power by 10.75 percent. Because we can anticipate rates to continue rising this year, it’s evident by this chart that
If you’re ready to purchase your home, or sell yours and find your new dream home, let’s get in touch. I am happy to walk you through the process of successfully listing and selling your home for top dollar and helping you find a new home to fit your needs.
2016 has been quite a year to live in the Pacific Northwest, especially if you spent some or most of it in the housing market. This year’s market was truly unique, record-breaking, and game-changing (see: Windermere’s W Collection). To close out the year here are a few of the most noteworthy Seattle-area superlatives related to real estate – and a few confirming just how lucky we are to live in this beautiful pocket of the world.
Nation’s Hottest Housing Market
Let’s get straight to the point – this year Seattle was named the hottest housing market in the nation! According to Geekwire home prices in our region rose 11 percent between September 2015 and 2016, putting us ahead of Portland for year-over-year growth.
We owe much of this recognition to our booming tech industry, which has been bringing people to the Seattle area in droves. “Droves” refers to the 86,320 residents (and counting) who moved to Greater Seattle between April 2015 and 2016, marking the region’s biggest population gain this century.
Many of these thousands of people who flocked here for tech jobs were probably also considering other tech hubs, but we were more alluring because tech salaries in the Seattle area are among the highest in the U.S. after cost of living adjustments. That means their salaries go much farther here than other tech towns, such as San Francisco, enabling them to have a better quality of life.
The Region’s Largest Property Sale
Of all of the multi-million dollar property sales in our region the largest was the 50-story Safeco Plaza in Seattle, which sold for $387 million. The buyer was a Munich-based company that had previously acquired an Amazon-occupied property in the thriving South Lake Union neighborhood.
Eastside’s Biggest Property Sale
The Seattle Times recently reported a pair of investors from the United States and China bought a major office complex in Bellevue for $202.2 million, making it the biggest transaction on the Eastside this year. The three-building, 480,000 sq. foot complex is fully leased and will be home to tenants such as BitTitan and CenturyLink.
Seattle No. 1 Choice for Foreign Investors
What’s one important thing buyers of both of these properties had in common? They were foreign investors. This year Seattle became the No. 1 choice for foreign investors after British Columbia enacted a 15 percent tax on foreign buyers in August, causing them to redirect their real estate searches to the Seattle area. To quantify this impact, as of November, Chinese money accounted for about 55 percent of all homes purchased by foreign investors in Washington.
Seattle No. 1 Place to Live If You Love Spending Time Outdoors
While this last ranking isn’t directly related to real estate, it’s definitely worth boasting about! Six Washington cities made Business Insider’s list of “25 beautiful US cities to live in if you love spending time outdoors.” Seattle topped the list and Bellevue came in at No. 5. Every day we are surrounded by the beauty of trees, mountains, and water with endless opportunities and ways to enjoy them.
According to Veros Real Estate Solutions, the Seattle-Tacoma-Bellevue market is projected to be the fourth hottest real estate market in the U.S. in 2017. The company projects home prices to appreciate 10.2 percent in our region next year, far outpacing the rest of the country.
If you’re thinking about selling, the timing couldn’t be better. With inventory at historic lows, prices at or near record highs, and multiple offers the norm, it’s an exceptional time to get top dollar for your home.
Are you ready to sell your home?
Get in touch with a Windermere Real Estate agent to receive a valuation of your home based on current market conditions, walk you through the process, and answer any questions you may have.
This post originally appeared on the Windermereeastside.com blog.