After doing some research, I think that Seattle’s home prices will significantly decrease over the next year or two. Home prices have already come down a bit, though not nearly as much as the national average. I would like to buy a place and stop shoveling cash into the furnace that is renting, but I also don’t want to lose $100,000 by prematurely purchasing a home in a market that still needs to go down.
My rent is ridiculously high at $1,100 a month. The greedy head honchos who own my building (Metropolitan Park Apts) just jacked it up 15%. I would love to buy a place and start saving that cash. Renting currently costs me around $14,000 a year. I would love to be able to put that money into real estate equity.
I think that the median home price in Seattle is going to drop another 10-20% over the next year, if not more. Seattle is always a bit behind in national economic trends and we still have yet to feel the full brunt of the housing bust. Another huge problem is that so many major employers in Seattle are entering hard times… WaMu getting bought out & shut down by JP Morgan is just the tip of the iceberg. Microsoft has had a hiring freeze for awhile now and it looks like they may be doing layoffs soon. Many local businesses have started to burn cash and it wont be long till we start seeing rounds of layoffs from them.
My hope is that my income continues to rise and I will be in a good position to take advantage of much lower home prices in a year or two. I will still be looking out for amazing deals now, but I think I will see many more good deals coming my way if I have some patience.