Timing your home purchase is a key step in the homebuying process, but the factors you’ll ultimately consider depend on you. Below are a few insights to help you schedule your home purchase (and the other requirements that come along with it).
Market movements
A crucial aspect to consider is the current state of the housing market as well as the larger economic trends that affect it.
At the moment, Seattle real estate is the fastest cooling market in the country. Fed hikes and the subsequent increases in mortgage interest rates, plus inflation and general economic uncertainty, resulted in less demand for housing, lower home sales, as well as a reluctance among some sellers to list their homes.
Some parts of Seattle are seeing either increases or decreases in home prices. Central, North, and West Seattle homes for sale all enjoyed hikes in the past month, with Central Seattle being the highest performer. The neighborhood recorded an 11.46% year-on-year increase. West Seattle homes for sale saw a 5.75% price growth in the same period, but more increases are expected to come in the next few months now that the West Seattle Bridge is open again.
The current market conditions may seem alarming, but not all is lost. With the lower demand for homes in Seattle, there’s less competition and more negotiating room for homebuyers who decide to push through with their purchase.
The season
In timing your purchase, you might also want to consider the season. Some months see higher buyer activity than others. Seattle is no exception.
Spring and summer are considered the busiest homebuying seasons. Many buyers hold off their home purchases during the winter months, resulting in high demand as well as higher chances of triggering bidding wars during spring. Demand also drives prices, but despite that, many buyers prefer to purchase homes in the spring for two reasons: the pleasant weather and the incoming school year.
By August, homebuying activity typically starts to slow down compared to spring levels. In the late summer, you might even be able to see some price
reductions, but that ultimately depends on the market in question. Deals may be more common once autumn sets in— school is already in season, there are less homebuyers in the market, and sellers tend to be more enthusiastic about selling their properties.
Winters in Seattle can be chilly and damp. While temperatures usually don’t go below freezing, this season often sees the lowest homebuying activity. That said, this is the best time to score deals. Sellers are even more motivated, there’s less competition, and home prices are lower. Cold weather, snow, and possible navigation challenges aren’t the only things to overcome, however, as the housing stock can also be limited during this time of the year.
What You Must Do to Purchase a Home in Seattle
Are you attempting to purchase a home in one of Seattle’s trendy areas right now? Here are some pointers from the top exclusive buyer’s agent in the area that can give you an edge in the multiple offer scenario you’re likely to encounter.
The housing supply in King County as a whole is 1.8 months. We are far into a seller’s market because a balanced market is thought to last between 5 and 6 months. Popular and up-and-coming Seattle neighborhoods including Green Lake, Fremont, and Queen Anne have an average housing supply of 0.8 months. Homes in these neighborhoods frequently go on the market in the middle of the week, with offers being considered the following weekend. What strategies do you use to compete in the brisk Seattle real estate market?
Your financial arrangements must be secure.
A pre-qualification letter won’t cut it because many of our clients have been up against bids that require all cash or 50% down. Even if a pre-approval letter is somewhat preferable, for the best chance of success, you must really be authorized. To be approved, your loan application must have already been underwriting so that the seller is aware of your reliable financing.
Leave the house and explore it!
You cannot afford to put off viewing these residences until the weekend. The serious purchasers will already have planned their bid strategy and completed their inspections by that time. The day a house goes on the market, a reputable exclusive buyer’s agent will arrange you an appointment to see it.
The home should be assessed!
In situations where there are competing offers, the inspection conditions have been relaxed in nearly all cases. To understand the true state of the house you are attempting to purchase, you must have it pre-inspected. You should budget between $450 and $500 for a structural and pest check. Four inspectors were simultaneously crawling all over a recent Fremont property.
Remember to sewer scope!
You should make sure the side sewer connecting your home to the main sewer line is in good condition because many of Seattle’s older neighborhoods are from the early 1900s and have outdated sewer systems. Although it will only cost you about $300, fixing a sewer line could come as a $10,000–$20,000 pricey surprise after you have just purchased your ideal house.
Be ready for an escalation!
In order to spark interest and a viewing frenzy that will perhaps lead to a bidding battle, many Seattle homes are priced below their fair market value. Homes in Green Lake, for instance, have recently sold for up to 20% more than their list price. That conventional craftsman home you thought was a fantastic buy at $500,000 is become a $600,000 dogfight to get it.
Be ready to experience disappointment!
It is not unusual to see 5–12 offers on a house given the low supply and high demand from purchasers. Unfortunately, this means that 4–11 buyers will be upset since they were unable to find the home of their dreams. They will also be your rivals when the next house in the area you wish to live in hits the market. Keep in mind that another house will always exist.
Final thoughts
Market conditions and the time of the year are necessary factors to consider when timing your home purchase. But don’t forget to think about your readiness as well. Assess your financial situation and contemplate whether you’re ready to buy a home mentally and emotionally as well.
