What to Expect from the Washington Real Estate Market

1. What to Expect from the Washington Real Estate Market? Generally, real estate investment is an excellent option because it generates ongoing passive income. It is a long-term investment with higher returns if the value of your property increases over time. The real estate market in Washington State is busier than ever. Research shows that real estate sellers in Washington in 2021 received multiple bids from buyers. Most of these bids were above the asking price. Some were even tens of thousands of dollars above the price. Real estate experts argue that the Washington real estate market will experience a substantial momentum in 2022 due to high demand for residential properties, low rates on mortgages, and economic recoveries from the Covid-19 pandemic.

2. Zillow reports that the average price of a single-family home in Washington was $563,890, with year-over-year growth of 22.8%. The real estate market will experience an increase of 12.3% due to lower chances of prices stalling in 2022. According to Realtor.com, Spokane Valley is the best Washington Luxury Real Estate market in Washington, with a higher growth likelihood in 2022. Many investors, including residential property buyers, take an interest in the Valley’s suburbs because the average home price in Spokane is $352,000. Today’s article will answer what to expect in the Redmond Real Estate market. Read on! Property Demand Is Growing WA Luxury Real Estate Property demand in the State of Washington will grow in 2022 because the Covid-19 pandemic has led to the growth of migrations. The pandemic has caused businesses to adopt online technologies and encourage their employees to work from home to stay afloat and productive. People who can afford a house move out of their smaller apartments and purchase a comfortable, reliable, bigger house. As a result, the demand for residential properties in Washington will be higher in 2022. Buyers are making multiple offers on their homes, and most of them go above the asking price. Redfin has reported that 50.8% of residential property listed in 2021 sold above the asking price. About 7.1% of homeowners dropped prices to sell their properties. However, the sale-to-list price in Washington State was 102.5% in 2021. Experts argue that this will increase in 2022. A Massive Shortage In Supply In-migration has increased the demand for affordable housing and caused a massive shortage in supply across the State. So, the housing inventory is anticipated to remain low in 2022. There are numerous reasons behind the low housing inventory in Washington. For instance, in-migrants look for affordable housing options, but at the same time, they want to find locations with higher lifestyle standards and improved quality of life. In addition to the recovering economy, Washington fares well in education, health, infrastructure, and financial stability than other states in the U.S. Washington ranks third in quality of infrastructure, fourth in the standard of education, and sixth in financial stability. These ranks or factors make Washington the best place to invest in residential and commercial properties.

3. Property Prices Are Increasing The real estate market in Washington State ranks among the best markets in the U.S. However, prices of residential and commercial properties consistently increase considering the supply and demand. The Covid-19 pandemic is the primary cause of rising real estate prices in Washington. Home value growth has remained consistent between 2018 and 2021, and the trend will continue in 2022. For example, the average median home price was $375,000 in 2018. However, it reached $549,500 by the end of 2021. So, residential properties’ value will increase in 2022, but experts argue it won’t be as intense as it was between 2018 and 2021. Low-Interest Rates According to the U.S Bureau of Labor Statistics, Washington’s unemployment rate dropped to 5% in 2021. In 2020, the unemployment rate reached 16.3% due to the intensity of the Covid-19 pandemic. Thanks to the mass vaccination campaigns, Washington is recovering to achieve a stable economy. However, the Delta and Omicron variants may disrupt the state’s economy and affect the employment rates. That’s why individuals and businesses must take their booster shots. Moreover, interest rates will remain stable and won’t experience a heavy surge. So, the low-interest mortgage rates are a sigh of relief for homeowners, especially when the Delta and Omicron variants have wreaked havoc throughout the state. The interest rate in January 2021 was 2.6%. However, it increased to 3.12% in the last quarter of 2021. Economic and real estate experts have forecasted this interest rate will remain stable until the end of 2022. Low-interest rates and decreased unemployment rates are the most significant factors that attract investors and homebuyers to Washington state. Final Words Despite the Covid-19 pandemic, the Washington State’s economy has boomed, the primary driver of its lucrative, ever-attractive, and thriving real estate market, making it a hotspot for investors and buyers.