Buying Property in Washington State? Market Outlook

Are you interested in real estate investing in the Pacific Northwest? After a couple of strenuous years during the pandemic, Washington’s economy got back on track. The Evergreen State’s housing market is ready to welcome new investors and first-time home buyers. For successful closing, one should avoid common mistakes in real estate investing. For example, most people rush into house-hunting without knowing the market outlook and how to navigate the buying and investing process. Getting professional guidance from the top realtors in Washington state will help you learn more about market stability and when to buy.

State outlook: Economy and Population

Source: seattlemet.com

Economy and population growth are two main factors that affect the real estate market. From that perspective, Washington is a standout. Nationally, the state ranks fourth in economic health, second in innovative potential, and first in economic activity, making it a goldmine for investors.

With a stable economy and growing job market, the population is increasing, attracting newcomers to its largest cities. With leading employers such as Microsoft, Amazon, Facebook, and Google, the neighborhoods around King County are welcoming more and more young professionals in search of housing. Growing demand for housing in the city due to re-located tech professionals predicting Seattle’s top real estate agents – https://www.fastexpert.com/top-real-estate-agents/seattle-wa/.

What makes Washington state one of the most desirable states to live in:

  • It’s a paradise for nature-lovers with beautiful mountains, forests, and picturesque coast;
  • The thriving job market offers many opportunities in various industries;
  • Washington is a home for many global corporations;
  • High-quality educational institutions with good facilities across the state;
  • No income tax;
  • A manageable cost of living (especially compared to neighboring California);
  • Homebuyers have various housing options, from busy metropolitan areas to small coastal towns.

Washington housing market insights

Source: unsplash.com

The COVID-19 pandemic caused drastic consequences for the real estate market due to the increasing unemployment rate and the fallen economy. But since the crash, Washington has made steps to recovery, giving us a pretty stable market now in 2022. Here are the highlights of what affects the house-shopping the most this season:

Mortgage Rates

For the first half of 2022, the mortgage rates remained low, making a lot of first-time home buyers happy. However, real estate specialists predict mortgage rate growth of 5.5% by the end of the year. So if you’re planning on buying a house, get pre-approved now, before the rates get much higher!

Property Prices

Bad news for home buyers: the increase in housing costs in Washington has made national news. Due to high demand and buyers’ competition, the average property price increased by 22.8% since 2021. There’s currently an inventory shortage. While new homes are being built, the supply does not match the demand. In Seattle, the market is even more intense.

Homeownership Assistance Programs

With the house cost rising, more first-time buyers look towards governmental homeownership assistance to help with financing. The U.S. Department of Housing and Urban Development lists various national and state-wide programs. Some assistance programs offer help for minorities while others to all low-income families or first-time buyers.

Discover Top Washington Local Markets

Source: unsplash.com

While growing overall, the real estate market in Washington varies from city to city. Even if you’re familiar with the state’s economy and its top realtors, you still need to research the local markets to find the best-suited option for your lifestyle and budget. Here are the top 5 cities in Washington that are the best places to buy a house:

1. Seattle

The world-famous city is the most populated metropolitan area in the Pacific Northwest. It’s a fast-growing city that offers vibrant culture and many job opportunities. Seattle’s lifestyle matches young professionals and dynamic families, making it a home to many out-of-state newcomers. The average house price in the heart of Washington state would range between $800,000 and $940,000.

2. Redmond

East of Seattle, Redmond is home to thousands of tech geeks and IT professionals. So whether you’re looking to broaden your opportunities or are a digital nomad that wants to settle in the picturesque state, Redmond is a place to be. Being the biggest employer in the city, Microsoft is home to over 40,000 professionals, making Redmond the dream tech place. This popularity shows in its housing prices. On average, the house here would cost you around $1,300,000.

3. Bellevue

One of the wealthiest areas in the Northwest, Bellevue was voted as one of the best mid-sized cities to live in the US. The vibrant lifestyle, high-rated schools, and never-stopping job opportunities attract newcomers across the state and even nationwide. Expect to pay around $1,400,000 for a new property here.

4. Tacoma

The real estate market in Tacoma attracts home buyers with more affordable prices. It’s a port city with a growing job market and a stable economy. The single-family house in Tacoma will cost you around $500,000.

5. Kirkland

People looking for a suburban place around Seattle should pay attention to Kirkland. The real estate market is stable and growing. The city offers good schools, many recreational facilities, and family-orientated neighborhoods. On average, the property cost around $1,100,00.

The Final Word

As you can see, the Washington market overcame the crisis of 2020 and became even more stable. However, it’s tough to buy a house there now. The population growth, unusually high demand, and inventory shortage signify that the current market favors the seller. When you start the house-hunting journey, figure out your financing, set the requirements list, and get a local realtor to help you navigate the market and advocate for you during the closings. The buyer’s side is highly competitive, so you would need all the help you can get. But there are no signs of the market slowing, so don’t put off buying a house in Washinton.