If you are a first time buyer, you may be looking at the Bellevue, WA real estate market and wondering if is time to take the plunge. With home prices on the rise and low inventory causing bidding wars that can end in over asking offers, you may feel like you should wait it out, let things die down and then buy during a slower time of year. While every market is different, 2016 is definitely the time to buy Bellevue, WA real estate and here is why:
Low mortgage rates will soon be a thing of the past
The Federal Reserve is forecasted to increase interest rates by the end of 2016, which means your opportunity for snagging a low interest rate is winding down. Expectations are that they will go up gradually, but the higher the rate means the higher the mortgage payment. Buying by the end of 2016 means you still get it on historically low interest rates.
More homes are expected to hit the market
If you are currently a buyer you may not feel like there are enough homes. After all, with multiple offers and bidding wars, the market can feel a little tight. It is indeed a seller’s market, however these conditions are giving home owners the confidence to list their home whereas just a few years ago they weren’t sure they could break even if they listed. Combine the confidence with price appreciation and buyers should have a decent inventory to choose from so long as they act fast enough. Not to mention that more homes are expected to hit the market thanks to a new construction boost from builders. Making sure you pick a qualified Bellevue, WA Realtor will help you stay ahead of the curve as they can let you know about new listings in a timely manner.
Renting is more expensive than buying
Buying is absolutely cheaper than renting. In fact, even if mortgage rates do increase a little bit, buying is cheaper. According to Rent Jungle, Seattle’s rent average as of June 2016 was $2,191. For Bellevue, this cost was $2,349. In fact, the average apartment rent for Bellevue, WA has increased 21% in the last 6 months. These monthly rental rates are not for large penthouses either, think small one bedroom apartment. According to mortgage calculators, you can snag a $600,000 Bellevue, WA home for sale and have a similar (if not less) monthly payment through a 30 year loan with a low interest rate.
Still not sure about buying just yet? Check out this great graph from the folks over at Keeping Current Matters!