Do you ever wish you could go back in time and buy real estate in 2012 or 2013? Well, my DeLorean time machine is broken but I have four reasons why Q1 2024 could be one of the best times to buy a home or investment property in Western WA.
1) Strong Population Growth in Western WA
According to recent a study, Seattle was one of the fastest growing large cities in the United States. Another article noted that the state of Washington is projected to hit 8M people in 2024 and grow to over 9M people by 2038.
As investors and homebuyers, we want our properties to appreciate over time. While no one can predict the future, population growth is one of the best indicators of future home price appreciation. When there is more demand for housing, home prices and rents tend to increase.
2) Interest Rates Have Declined
Since so many people use a mortgage to finance the purchase of their home or investment property, interest rates have a huge impact on a local housing market. And the start of 2024 brings good news: According to data from the Fed, the average 30 year fixed rate mortgage is now around 6.50% at the time of this recording. This is a significant improvement compared to the 8% average rates we were seeing in Q3 and Q4 of 2023, making borrowing more affordable for potential homeowners and investors.
3) Prices Lower than Peak in Summer 2022
If you’ve been patiently waiting for a more favorable pricing environment, Q1 2024 might be the right time to make your move. Current market conditions indicate that prices have softened compared to the peak observed in the summer of 2022. This presents an excellent opportunity for buyers to enter the market at a more affordable price point or negotiate favorable deals.
4) Less Competition: Beat the Spring/Summer Rush
Spring and summer are traditionally known as the peak seasons for real estate transactions, with an influx of buyers entering the market as the weather improves. If you buy in Q1 or even early in Q2 you’ll likely face less competition giving you a better chance of securing your ideal home or investment property.
To summarize, the 1Q of 2024 offers a promising landscape for those looking to enter the real estate market. Western Washington’s robust population growth, declining interest rates, lower prices compared to the 2022 peak, and reduced competition make it an opportune time for savvy buyers. As always, thorough research and consultation with real estate professionals are crucial to making informed decisions.
