Understanding the Washington real estate market
The real estate market in Seattle, or really anywhere in Western Washington, is many things. But at a reasonable price? not exactly.
According to a recent survey by the Census Bureau, the median income in Seattle is $110,000. According to Northwest Multiple Listing Services, the average price of a home in King County is $726,000 as of February 2023.
Matthew Gardner, chief economist for Windermere Real Estate, tells KIRO 7 that households with an annual income of $150,000 (assuming no debt and good credit) may qualify for a loan between $550,000-570,000. In his own words, "It doesn't get you very far in Seattle."
So why is the market so hot here?
Well, many things rule the market in Washington, but the biggest culprit? Simply put, there are more people and less land. Gardner adds, "When you limit the amount of land, it only increases home values."
Another factor to consider is money outside the country. People moving from bigger and more expensive cities like New York or San Francisco find Seattle to be "cheaper". The foreign money "buys" local income.
But really, no matter where you sit on the pay scale, Gardner says a good start to the home buying journey is simple: save your money.
The most important thing to save for is a down payment, and good news: 20% down is "really old school" according to Gardner, who says, "In general we tend to see 5-10%."
With debts paid, a down payment saved and an asset that makes sense to you, remember that while it's a lot to advance, it's a lot to pay back in the end.
"If you're renting every year, 18 months, whatever, then you're waiting for the landlord to say how much they're going to raise your rent," Grander said. "Now with a mortgage, you know what the payment is...the payment doesn't change but the value of those dollars goes down in hopes that you're making more money."
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