The question looming is, will there be a recession in the shifting Seattle housing market in 2023? According to Redfin, housing sales are down 42.2% from last year, as prices rise by 7.6%. The current median home sale price is $675,000, down from April’s high of $757,750. Mortgage payments for a typical U.S. home rose from needing 27% of median household income in January, to 30% in March, to 37% in October.
Instead of waiting for much lower prices, experts suggest buying a home based on your budget and needs. If you find a home you love in an area you love, and it also fits your budget, then chances are it might be right for you. However, if you make too many sacrifices just to get a house, you may end up with buyer’s remorse, potentially forcing you to offload the house.
Homebuyers that are blessed to be able to buy a house are in the driver’s seat. They can ask for concessions, the buyer can have the house on his own terms and at the buyer’s pace. One expert said a housing market like this has never existed in Seattle for at least four years.
Redfin is a Seattle based real estate company. It’s leader stated recently that, “The economy could be headed for recession and your personal income or employment could be at risk. I think people underestimate this risk; they think their job is secure when they’ve had it a long time, but we’ve seen a lot of companies layoffs. I think it’s always something to be prepared for. Make sure you have an emergency fund. Don’t overwhelm your budget with your housing budget and don’t have money left over to save for bad times.”
Many economists are expecting a recession this year. Those who bought or refinanced when mortgage rates were low will have relatively low monthly payments. Asking rents have grown considerably, despite recent cooling in rent growth, so the potential to yield regular rental income above the monthly cost of a mortgage is strong.
