News Update : Looking to rent or own a home? 5 trends that should influence the decision in 2024 in Seattle
The Seattle real estate market is usually a robust industry but faced challenges in 2023 due to a variety of reasons as cited by experts at United Seattle, explained in detail here. Some of the highlights included hikes in home prices, soaring inflation, rising interest rates, demand-supply issues and restrained mortgage rates. The commercial real estate industry faced a similar slump. However, if you are looking to buy or rent in Seattle, here are the latest trends you should look out for in 2024.
Home Prices
Just like in 2023, the average home prices are predicted to increase in 2024. The difference will be a small percentage of 1-2% in the state of Washington but it will still hamper the buying capacity. However, the increase for Seattle itself is predicted to be on the north side of 3%. Although, some research houses say that it might go down which further deepens the uncertainty of the buyer and seller alike.
Mortgage Rates
One thing is for sure as per all real estate analysts that the mortgage rate is going to go down. The average value might decrease by around % as per Fanny Mae and Lawrence Yun. However, the same predictions were made for mortgage rates in 2022 about 2023. However, the mortgage rates soared which is also a possibility in 2024 making buying property more difficult than the years gone by.
Home Listings
The enduring impact of the "lock-in effect" is anticipated, as homeowners continue to retain their homes due to favorable low-interest rates, thereby restricting the availability of homes for sale. The prospect of more homeowners listing their properties arises if rates stabilize around 6%. Nonetheless, if rates remain significantly above 6%, there is a potential obstacle to an increased number of sellers in 2024.
Apartment Rents
With buying and selling causing uncertainties in the Real Estate market, the rental units are about to get a boom. This means that more people will prefer renting rather than buying creating a reverse supply-demand issue. A decrease in new apartment projects and financial struggles for developers may contribute to a 4% increase in apartment rents in the Seattle area. The high costs of homeownership may drive more individuals towards renting as the practical housing option.
Investment Opportunities
With the expected prices of homes and offices predicted to increase year on year, it is advised that the best time to invest in real estate is 2024. Many buildings will be listed as they are returned after the Covid slump making the ROI even bigger with rents going up in 2024 and beyond.
Therefore, 2024 is predicted to be complex when we talk about the real estate landscape, be it residential or commercial. To highlight a few complications, home prices are likely to increase along with mortgage rates. Furthermore, fewer sellers and buyers will force the market into a slowdown which will increase the rental values. It is a good time to invest thought but a bad time to buy. However, there are no guarantees that these markers will improve in the next 5 years so the time to invest is right away!
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