Real Estate Roundup YOUR PULSE on the market | 5.2019
Our region’s real estate market is beginning to heat up as we enter peak season. Refinances have surged and home values are stabilizing. Experts predict a strong and steady real estate season for our area. •
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In the past few years, home value appreciation in the Puget Sound area has stood out among markets around the country, but a recent report now ranks Seattle 12th in the nation for home value appreciation. ( Has the 12th man caught up to us?) The rate at which homes appreciate is now comparable to the national trend, the first time Seattle has seen this slower pace in almost seven years. U.S. home prices rose by an average of 3.6 percent from a year earlier, while Seattle is reporting an average increase of 4.1 percent compared to this same time last year. In February, average hourly earnings rose by 3.4 percent over a year ago, indicating wage increases are beginning to match rises in home prices. Buyers should consider taking advantage of these trends given the current state of the market.
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Mortgage rates for a 30-year fixed are averaging around 4 percent, with the expectation that rates will slowly increase through 2019. With current mortgage rates steadily decreasing in the past few weeks, applications for refinances have surged. Some loan types reached their lowest level, in terms of rates, since January 2018, and the volume of applications is 58 percent higher than a year ago. Current homeowners should act fast if considering refinancing, while rates are at this threshold. Real estate experts predict that home prices outside the major metro areas and along the I-5 corridor will continue to rise throughout the spring season. The real estate season for Seattle and surrounding areas is off to a good start, and the peak is expected to be more normal compared to prior years.