Rent vs. Buy: When to Take the Plunge to Escape the Rising Rents

Seattle Condo Available: $270,000

When is the right time to buy? That is  the question many generation Y Seattleites are asking themselves as the price in rent continues to climb, and mortgage rates begin to slowly climb. Seattle residents in their 20s are currently watching rent increases surge, and are all wondering when interest rates will begin to be too high for them to afford as well. This age group became young adults at the time of the market’s slippery slopes in 2007, and do not want to be stuck in the financial crisis their family and friends may have suffered before. The tug of war between rent vs. buy has been debated time and again, and it seems to have comes to a head in today’s marketplace.
The median Seattle home sale price is up 15% in August from a year ago, and rent is up 6% in comparison to last year; is it time for generation Y to take the purchasing plunge? There are a lot of factors for them to consider, and contacting a local real estate representative is a step in the right direction to determine if it’s time for you.

Why You Should Consider School Districts When Searching For a Home

As you begin your home search, there are plenty of things you already know to factor in the decision: price, neighborhood attributes,  beds and baths, square footage, and proximity to work. But have you considered looking into which school districts are round the neighborhood you’re searching? In Seattle as we know many new homeowners aren’t planning on having children anytime soon or maybe not at all, but this doesn’t mean that you should cast the school district factor aside; even if you do not have children or do not plan to, the quality of education nearby can greatly affect how much you pay for your home, and how much you can expect to sell it for in the future. You’ll pay more for your home if it is within a good school district. Parents of school age children are always searching for high school ratings, and often will pay more to live in a zoned neighborhood within a highly rated district. A good school district can also protect you from the ups and downs of the real estate market; even in an unpredictable market, a home in a great school district will likely see nearby home values staying consistent or above the median. This will protect you when it comes time for the resale, and although there are no guarantees, you can rest assured parents will always be looking to move to the best neighborhoods with the top schools. For more information on Seattle real estate, please contact your local agent today.

UW Planning to Redevelop Raniner Square

Some may not know that the University of Washington is one of Seattle’s largest land owners in the city. UW owns Rainier Square and plans to make changes soon. They have reached out to at least four developers, 2 local and 2 national, and have asked them to come up with ideas to redesign the properties. The developers have until the end of the month to submit their proposals, UW will then choose one in November. UW hopes to begin the redevelopments in a year.

How the Housing Market Could be Affected by the Government Shutdown

Photo Courtesy of Puget Sound Business Journal

Just as the housing market is getting better there is now a possibility of it to begin to slightly decline again. With government workers facing possible furloughs, consumers may not have the confidence to purchase a home. A steady income is needed to be able to make payments on a mortgage but some will not be receiving paychecks and may back out of deals and put off buying a new home until things become more stable again. Most lending companies will not be affected and will resume lending for mortgages since they are not federally owned. Other government funded sources for the housing market such as the Federal Housing Administration and the Department of Veterans’ Affairs may be shut down and therefore will not process applications and requests for assistance. If people are not getting the money they need, they will not be renting or buying homes during a government shut down. That being said, a short term disruption of funds during that time would certainly be detrimental, but shouldn’t have a long term affect on demand or housing affordability.