DAVE ROSS

Economist’s advice on home buying in Puget Sound’s improving market

May 8, 2019, 6:57 AM

king county...

(Joe Raedle/Getty Images)

(Joe Raedle/Getty Images)

The Puget Sound region’s housing market continues to level out, making it a great time to buy a home. In terms of how to approach that, in a growing buyer’s market, Windermere Chief Economist Matthew Gardner has some advice.

The Puget Sound housing market has seen sizable decreases in home prices from 2018, marked by an almost 5 percent decline in median residential home prices in King County.

That’s a downturn that Gardner labels “a move back to reality” that the region has been awaiting “for almost 20 years.”

“The big pitch we’re looking at right now is a move back towards balance,” he noted.

Have $150K in household income

Gardner advises a household income of at least $150,000 for anyone looking to buy around the median $625,000 price for a residential home or condo in King County.

RELATED: Puget Sound housing market continues to favor buyers
RELATED: Seattle housing market continues downward trajectory

That said, that number is also “very much dependent on what you’re buying, where you’re buying it,” and your total down payment.

Beyond that, he outlines a trio of factors for all buyers in the King County region to consider.

“If you meet all those three criteria, you have my blessing to buy a house,” he said.

Consider level of debt

“Firstly, are you comfortable with the debt level? Don’t stretch yourself,” Gardner said..

That’s something that can be mitigated by mortgage rates averaging just 4.4 percent for a 30-year fixed loan right now. That’s a number that Gardner labels as “remarkably attractive and very unlikely to rise anytime soon.”

Income

Next, a steady source of income is key. Be in a place where jumping around from job-to-job, or working up a ladder is behind you.

“Be comfortable in your career and your job,” Gardner said.

Long-term investment

And finally, he recommends knowing that you’ll be investing in the home of your choice long-term.

“Most important: Will you be in that house for at least seven years?” Gardner said.

Dave's Commentary

Dave Ross on KIRO Newsradio 97.3 FM
  • listen to dave rossTune in to KIRO Newsradio weekdays at 5am for Dave Ross on Seattle's Morning News.

Dave Ross

national debt...

Dave Ross

‘Don’t cut a cent:’ Dave Ross on why the national debt never gets under control

The national debt now exceeds $36 trillion, and every president says it has to be under control. And yet, it never is.

10 days ago

voters hormone...

Dave Ross

Ross: Voters weren’t just voting for change, they were voting for a hormone

The more I read the post-election analysis, the more I’m convinced voters weren’t just voting for a change – they were voting for a hormone.

17 days ago

ross o'brien...

Frank Sumrall

Dave Ross, Colleen O’Brien retiring after co-hosting ‘Seattle’s Morning News’ for a decade

Dave Ross and Colleen O'Brien, the co-hosts of "Seattle's Morning News" on KIRO Newsradio are both leaving the show.

21 days ago

election day...

Dave Ross

Dave Ross: Election Day and Decision Day are two separate things

Tomorrow is Election Day – that’s what the calendar says. But there are two problems with the term "Election Day."

1 month ago

negative political ads...

Dave Ross

Dave Ross: How I learned to stop worrying and love negative political ads

People say they hate negative political ads, but the reality is conflict is the soul of drama, and negative ads work.

1 month ago

FILE - People attack the U.S. Capitol in Washington, on Jan. 6, 2021. (AP Photo/Jose Luis Magana, F...

Dave Ross

Dave Ross: ‘The Love Fest’ that was also known as ‘The Insurrection’

“There was also a love fest between the police, the capitol police, and the people that walked down to the capitol," Donald Trump said.

2 months ago

Economist’s advice on home buying in Puget Sound’s improving market