Summary: This article discusses expert predictions on different areas of the WA State real estate market in 2020. For instance, home prices, mortgage rates, and other real estate developments in WA State are discussed. Readers should contact Sammamish Mortgage for additional information on the WA State real estate market.
No one has a crystal ball with which to see the future with 100% clarity. Fortunately, however, seeing the future with perfect clarity isn’t something real estate professionals are required to do, nor is it something buyers or sellers need in order to make wise decisions. If a person puts in the time and conducts enough research, it’s possible to make well-informed decisions regarding virtually all aspects of real estate. For instance, if a person researches the market well enough, he or she can make a reasonable offer on a given property in a given area; and if that offer isn’t accepted, that person can use his or her acquired knowledge to negotiate the best possible outcome. The point here is that being well-informed is very necessary in the real estate world, but seeing the future isn’t necessary. As long as you do your homework, your transaction should come out alright. This article is part of that process.
In this article, we will discuss some of the expert predictions for the real estate market in Washington State in 2020. We will look at the State of WA as a whole, as well as a few specific markets within WA State which warrant attention. As the new year rolls around, home buyers, sellers, and others interested in the real estate world in WA State should start looking to the experts in order to get a sense of what’s likely to happen. We will go over predictions for several key aspects of the real estate market in WA State in 2020.
To recap, we will explore the following areas:
- Expert predictions on WA State home prices in 2020
- Expert predictions on WA State mortgage rates in 2020
- Expert predictions on other WA State real estate developments in 2020
Expert Predictions on WA State Home Prices in 2020
Presently, as of December 2019, the State of Washington as a whole has a median home value of roughly $409,228 and is classified as a hot market. This means that buyers in WA State are at a higher-than-average likelihood of encountering a bidding war for a given property. During the upcoming 12 months, throughout 2020, home values in WA State are expected to rise by about 3.3%. This means that home prices will also rise by roughly this amount during 2020.
If we look at expert predictions for three key markets within Washington State, we can get a picture of the WA State real estate situation in a more nuanced fashion. As of December 2019, the city of Seattle had a median home value of roughly $729,000 and is classified as a cool market. Experts predict that values – and, by extension, prices – will rise by about 0.5% over the upcoming 12 months throughout 2020. Another key market, Bellevue, has a median home value of roughly $921,000 and is considered a cool market. Experts predict that the Bellevue market will see a rise in home values of about 1.7%. As of December 2019, the city of Tacoma has a median home value of about $335,000 and is classifies as a hot market. Buyers in Tacoma should prepare themselves for a bidding war because they’re very likely to encounter a competing offer on a given Tacoma property. Experts predict that Tacoma’s home values (and home prices) will rise by 5.5% over the upcoming year throughout 2020. Seattle, Bellevue, and Tacoma are three critical markets in WA State and give critical insight into the WA State real estate market as a whole.
Related: WA State Housing Forecast
Expert Predictions on WA State Mortgage Rates in 2020
The interest rates which apply to WA State customers are closely tied to interest rates across the nation. For this reason, WA State buyers should be keenly aware of interest rate information at the national level. Recently, the Mortgage Bankers Association published its monthly predictions regarding 30 year fixed rate mortgage loans throughout the U.S. in its December 2019, installment. In this document, we can see that the MBA has revised its predictions regarding 30-year loans which were made at the beginning of 2019. Now, the MBA predicts that 30 year fixed rate loans will see a rate of 3.7% by the end of 2020. This is a big difference from its earlier prediction, which posited a rate of 4.9% by the end of 2020. Although this rate is far lower than the MBA’s earlier prediction, it’s consistent with predictions made by other prominent experts in the industry. The majority of experts are predicting rates will be relatively flat in 2020. Keep in mind, expectations can change quickly and while it’s easy to predict things will remain the same historically that is rarely what actually happens.
Expert Predictions on Other WA State Real Estate Developments in 2020
Real estate experts also have other predictions on the WA State market. For instance, experts predict that the Seattle market won’t see a huge amount of home construction throughout 2020. Office space construction will likely see quite a bit of growth, but residential construction will likely lag. What’s more, experts foresee that the Seattle market will remain relatively strong in terms of price stability and attractiveness to investors. And the experts highlight a number of reasons to support this prediction: the strength of the Seattle job market, migration trends, projected returns for investors, job density, and other factors as well. The real estate market in Seattle will continue to present many attractive opportunities for investment. Nothing is ever foolproof, but the Seattle market will continue in 2020 to be a relatively safer environment for investors compared to other markets around the country.
Connect with Sammamish Mortgage for More Information on WA State Predictions
The State of Washington is one of the four states in which Sammamish Mortgage provides mortgage loans to customers. This means that the mortgage professionals at Sammamish Mortgage follow the trends in the WA State market very closely. If you’d like additional information on the predictions for the WA State market in 2020, contact us today. Our team of professionals can give you the information you need to make a well-informed decision regarding your upcoming purchase. Visit our website to use all of our cutting-edge tools and technology. You can click to View Rates, or click to get an Instant Rate Quote. You can also Apply Now to utilize our online, mobile-friendly application system.
