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Renting vs Buying: Which is Better for You?
Knowing whether it’s the right time to rent or buy depends on your buying power, what you’re looking for in a home, your local market conditions, your plans for you and your household, and the responsibilities you’re prepared to take on at your residence.
Renting gives you greater flexibility to relocate, fewer home maintenance responsibilities, and can often be more the more affordable option, depending on where you live. The extra costs associated with owning a home—interest payments, taxes, repairs—may be too much for some renters to handle.
Becoming a homeowner also has its advantages. From a financial standpoint, owning is usually better than renting in the long term—it allows you to build wealth as your property gains equity; your monthly payments are stable and actually become more affordable over time relative to your income; and some of the costs may be deductible at tax time. From a lifestyle standpoint, owning also affords you greater freedom to customize your living space.
Ultimately, the right decision depends on your situation. If you don’t plan to be living in the same place for at least five years, renting might be more logical, as it allows you more flexibility when it comes time to move again. If you’re looking to settle down for the better part of a decade or longer and can afford to buy a home, becoming a homeowner may be the better option. Here are a few additional considerations to guide your renting-versus-buying decision making process.
What are the local real estate market conditions?
Investigate the local sales and rental markets to get an idea of both typical home prices and the average monthly payment for a rental. When comparing housing costs, be sure to base your evaluation on what’s happening in your city and neighborhood, not the nationwide averages.
For a quarterly breakdown of local market conditions in the Seattle area, explore our Market Review page. Each report breaks down the latest figures in home sales, home prices, and days on market for regions throughout Seattle and the Eastside. They also include helpful insights and data analysis by our expert Owner/Managing Broker.
What can you afford?
Making the jump from renter to homeowner is often a question of affordability. Your mortgage rate will depend on your financial strength, your credit score, and other factors, so make sure to talk to a loan officer before you start looking for a home. Getting pre-approved for a mortgage will identify what you’re able to afford and helps strengthen your offer when the time comes.
To get an idea of what you can afford, start with our free Financial Calculators. You can estimate your monthly payment for any listing price/mortgage terms to get a well-informed picture of whether it’s the right time to buy.
Will you need to make repairs to your new home?
Buying a fixer-upper may seem like a great way to get a deal on a house, but if the money you spend on the repairs is too great, your profit could be diminished when it comes time to sell. The same is true for remodeling and improvement projects. There are various renovation financing loans available to you that can help with the costs of home repairs, though extra consultations, inspections, and appraisals are often required in the process of securing these loans. Ultimately, if you can only afford a home that demands major improvements, and you don’t have the skills to do much of the work yourself, you may be better off renting.
Can you rent part of the house you’re buying?
If you buy a house with rental-capable space (extra bedroom, mother-in-law unit, etc.), you could use the rental income to pay off your mortgage faster and contribute more to your savings. But, of course, you need to be willing to share your home with a tenant and take on the responsibilities of being a landlord or working with a professional property manager to help you with those duties. Renting out a space in your home will also require you to purchase landlord insurance on top of your existing homeowners insurance policy.
Making Your Decision to Rent or Buy
At the end of the day, the decision is up to you. Based on the conditions laid out above, it simply may not be the right time for you to buy. Fortunately, when it comes to being a homeowner, it’s not now or never. A real estate agent will be your ultimate resource in gauging whether it’s the right time to buy and guiding you through the process toward homeownership. To get started, connect with a local Windermere agent today.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2025, Windermere Real Estate/Mercer Island.
Adapted from an article that originally appeared on the Windermere blog April 11, 2022.
How’s the Market? Q2 2025 Review of Seattle Area Real Estate
The end of our spring market quieted down significantly as warm weather, graduations, and vacations distracted buyers and kicked off our typical summer slowdown. Despite this, Seattle posted modest year-over-year growth in both sales activity and median sales prices. The Eastside saw slight dips in sales prices and activity compared to last spring, but choice homes still sold quickly and most closed at or above their listed prices. Buyers found more room to negotiate, particularly on properties that needed work or otherwise didn’t generate immediate interest.
Our takeaways for Sellers: pricing strategy and early market momentum matter—homes that sell quickly are fetching the highest prices. Preparation and accurate positioning are key to success. For Buyers: There’s more inventory than last year, but the best homes are still moving fast and often over asking. Be ready to act decisively, especially in high-demand areas.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
Seattle was a medal winner in the Q2 relay! Median sales price in Seattle hit $1.02M, up from $968K in Q2 2024—a 5% increase year-over-year, signaling a healthy and steadily appreciating market. Despite increased inventory, sales activity rose 3% YoY with 2,019 homes sold, reflecting stable demand. Homes that sold within the first 10 days received 105% of asking price, while those on market more than 30 days averaged just 97%, so speed continues to command premium pricing.
Momentum continues to be visible across several neighborhoods. Queen Anne & Magnolia led the city with a 14% price increase, pushing the median to $1.5m—a strong signal of those wanting quiet luxury near the downtown core. Ballard–Green Lake and North Seattle also saw notable gains, up 10% and 9% respectively. Central Seattle recorded a 6% increase in price per square foot and the highest number of units sold among central neighborhoods, showing a rebound in core urban demand. Lake Forest Park was the only area with a significant decline in median price (-9%) suggesting buyer opportunity in the near-north fringe.
Much like the Eastside, inventory jumped to 3,500 new listings in Q2, a 16% increase over Q2 2024, giving buyers more choices and slightly more negotiating room, especially for homes that linger on market.
The Seattle market in Q2 2025 showed measured growth, more listing activity, and resilient demand. Whether you’re buying or selling, strategy, timing, and clarity on your market segment are what will make the difference.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
There was a listing surge this quarter and that was most significant on the Eastside! 3,194 homes were available—a substantial jump from just 2,509 in Q2 2024. This equates to a 27% increase in supply year-over-year. For buyers, there was more to choose from this quarter coupled with buyers being more selective and price sensitive. While competition is still strong, longer market times and slight price softening in some areas mean buyers have more negotiating power—especially in markets like Redmond and Sammamish.
But don’t rule out the homes priced and prepped well! Sales velocity remained strong, with 67% of homes selling at or above list price, and most (66%) selling within the first 10 days. 39% of homes even sold over asking price. The median sale price across the Eastside was $1.65M, slightly down from $1.67M last year (–1%), showing a stable but price-sensitive market. For those homes with a longer market time (over 30 days) on average, sellers took a 3% negotiation.
Areas like Sammamish (–7%) and Redmond (–13%) experienced the most significant price drops—indicating opportunities for buyers who are priced out of West Bellevue or Kirkland. If we’re talking community standouts, West Bellevue leads the pack in pricing, with a median sale price of $3.75M, up 5% year-over-year, and the highest price per square foot at $1,151. Kirkland saw the largest year-over-year price increase, up 8%, pushing the median to $2.19m. Redmond was the only major submarket to experience a notable increase in number of homes sold (+15%), despite a 13% price drop, suggesting high buyer demand for more affordable options.
Q2 2025 brought more listings and more choices, but the market remains fast-moving and price sensitive. Our takeaways for Sellers: pricing strategy and early market momentum matter—homes that sell quickly are fetching the highest prices. Preparation and accurate positioning are key to success. For Buyers: There’s more inventory than last year, but the best homes are still moving fast. If the home is listed, the seller is ready to make a deal. Whether you’re buying or selling, strategy, timing, and clarity on your market segment are what will make the difference.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Mercer Island’s Q2 2025 market remains robust, especially for well-positioned single-family homes. As predicted, those homes that were prepped well and priced strategically found serious buyers quickly—many selling within the first 30 days. 64% of homes sold at or above their list price this quarter, a strong signal that sharp pricing and smart timing paid off.
What’s less visible in the headline numbers is that 38 of the homes listed in Q2 are still active today. This speaks to the importance of days on market as a key driver: homes that sold within the first 10 days (71% of sales) received 102% of asking price, while those on the market longer than 30 days fetched just 96%. A 4% negotiation window suggests buyers are discerning, and sellers may be responding to increased competition while planning for a typical summer slowdown.
With 72 residential sales, Q2 showed a healthy level of activity, but overall urgency softened, leading to downward pressure on pricing. The median sales price slipped to $2,530,000 from $2,937,000 in Q1, showing that the early-year momentum didn’t carry through Spring. Still, when compared to Q2 2024’s $2.5m, pricing has remained remarkably resilient.
Neighborhood standouts: the Westside led the market with strong price per square foot and intense buyer interest – 5 of the 6 homes sold within the first 10 days. The North End saw the highest sales volume with 14 homes sold, proving to be a consistent favorite. The South End offered 7 sales at a reasonable price per square foot of $722 vs. the North End’s $885 per foot.
While the data shows a seller-leaning market, buyer demand is unpredictable. With an uncertain Fall market ahead, sellers should prepare for longer market times, and bring patience along with their listing prep. Buyers, on the other hand, should know that opportunities exist across the island, especially in the condo sector, where activity is softer and pricing may be more approachable for those looking to establish a foothold on Mercer Island.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Condos remained an accessible entry point for buyers across our region, with Q2 marking a strong showing. In Seattle, the most robust demand was found in more affordable neighborhoods like South and North Seattle—North Seattle alone saw a 24% jump in median price. Meanwhile, the luxury condo segment in Downtown Seattle moved more slowly, with average price per square foot landing at $794.
On the Eastside, the condo market felt uneven but held its value overall. While pricing trends varied by submarket, Eastside condos continued to outperform Seattle in overall price strength. Woodinville and Redmond stood out with impressive gains, while Mercer Island saw a softer quarter with just four sales and a median price dipping to $618K.
Sales activity rose 7% on the Eastside and 5% in Seattle compared to last year. Homes that sold within the first 10 days garnered the most attention, suggesting well-priced listings are still commanding strong interest. In Seattle, 53% of condos sold at or above list price; on the Eastside, that number climbed to 58%—a clear sign that buyers are negotiating in a competitive environment and pricing remains fluid.
With the single-family market still tight, condos—particularly those priced under $700K—continue to offer buyers a compelling path to homeownership in desirable neighborhoods.
Check out area-by-area details in the full condo report.
WATERFRONT
Lake Sammamish and Eastside waterfront saw a busy Q2 with 13 and 9 sales respectively. After a big Q1, Seattle waterfront sales slowed in Q2 with just 4 sales (as opposed to 10 last quarter). Mirroring the overall market, waterfront saw some softening on price—the vast majority of homes sold at or below their list prices with just a few choice properties attracting bidding wars.
Yarrow Point garnered the largest sale price of $13 million for an immense Cape Cod inspired estate encompassing over half an acre, 7,465 sq. ft. of interior living spaces, and 82 feet of prime low- to no-bank waterfront. Lake Sammamish offered the best bargain—an original 1975 lake house on 1/3 acre with 50 feet of waterfront that was snagged for $2.6 million.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis with your trusted professional.
View the full waterfront report
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2025, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and Trendgraphix, and deemed accurate but not guaranteed. Seattle cover photo courtesy of Codi Nelson, by HD Estates Photography. Eastside cover photo courtesy of Fred Fox & Julie Wilson; by Bobby Erdt, Clarity Northwest Photography. Mercer Island cover photo courtesy of Janet Bell & Julie Wilson; by Bobby Erdt, Clarity Northwest Photography. Condo cover photo courtesy of Luke Bartlett, by Kealin Branson, Clarity Northwest Photography. Waterfront cover photo courtesy of Nancy LaVallee, by Amaryllis Lockhart, Clarity Northwest Photography.
How to Price Your Home for Sale
The right listing price is absolutely critical to a successful home sale. Price too high and you will miss your shot to generate interest with a sense of urgency for buyers—often, overpriced listings languish on the market and end up selling for less than they would have if they’d been priced more competitively from the get-go. Price too low, however, and you risk leaving money on the table if your home doesn’t attract multiple offers. So how do you price it right?
As agents, we track market conditions daily to understand where the “Goldilocks zone” lies for different neighborhoods and price points based on buyer demand and competing properties. Your best bet is to work closely with your agent on an effective pricing strategy before listing your home…BUT in the meantime, here’s some info to help you better understand what goes into this process.
- Understanding the Value of Your Home: Market Value vs. Assessed Value and More
- The Difference Between a Comparative Market Analysis and an Appraisal
What’s your home worth?
While nothing can replace an in-person evaluation by a real estate agent or appraiser, automated valuation models (AVMs) can be a helpful first step in determining what your home is worth. AVMs assess your home by comparing its information with the listings in your area. An algorithm can’t possibly know about the unique characteristics of your home or its neighborhood…but it can give you a rough ballpark idea of your home’s value and how it’s changing over time. Curious? Try our Home Worth Estimator here:
What factors influence home prices?
Understanding what factors influence home prices will give you a deeper knowledge of the market, give clarity to the selling process, and help you work with your agent to accurately price your home.
Comparable Home Sales
Comparable home sales—or “comps”—have a major impact on the price of your home. Comps refer to the comparable homes in your area, both pending and sold, within the last six months. Your Windermere agent can provide you with a Comparative Market Analysis (CMA) to better determine the price of your home. CMAs factor in aspects such as square footage, age, and lot size compared to other homes in your area, to determine how your home should be priced among the competition.
Your Home’s Location
Location, location, location. It plays one of the most significant roles in your home’s asking price. Market conditions in your area, whether you reside in a metropolitan, suburban, or rural location, and the home’s proximity to amenities, schools, and entertainment all contribute to the price.
Your Home’s Condition
If you have recently invested in upgrades or other remodeling projects for your home, they could increase your asking price. However, the price increase potential depends on the kind of renovation, its ROI, and how valuable it is to buyers in your area. If the home needs repair, it will likely generate less interest from buyers than better maintained homes at your price point. Any outstanding repairs or projects looming overhead will make the home less attractive to buyers and could lead to a low appraisal.
Seasonality
Any factors that impact market supply and demand are worth taking into consideration when preparing to price your home, and seasonality is one that cannot be overlooked. Typically, market activity slows in the winter and picks up during the spring and summer months. However, market seasonality varies region to region. Talk to your Windermere agent about the seasonality trends in your area and how they factor into your asking price.
Market Conditions
Finding a competitive listing price will be depend on local conditions, such as whether it’s a buyer’s or seller’s market. Some sellers think that pricing their home over market value means they’ll sell for more money, but the opposite can often be true. Overpricing your home presents various dangers such as sitting on the market too long, which can result in selling for well below what it’s worth.
Periodic Price Adjustments
Pricing a home isn’t a set-it-and-forget-it proposal. As with any strategy, you need to be prepared to adapt to fast-changing market conditions, new competition, a lack of offers, and other outside factors.
These are the basic tenets for understanding what goes into the price of a home. When you’re ready, a Windermere agent will interpret and expand on this information, perform a CMA for your home, and guide you throughout your selling journey.
Adapted from an article originally appeared on the Windermere blog October 5, 2022.
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2025, Windermere Real Estate/Mercer Island.
How’s the Market? Annual Review of Seattle Area Real Estate
Happy New Year! Whew, we made it! With 2024 now in the books, we’re looking back fondly on a real estate market that showed positive signs of growth in virtually every sector. Median sales prices posted strong double-digit gains on the Eastside along with a healthy 8% rise in Seattle. Listings also rose, easing the strain for buyers grappling with our housing shortage.
If you’ve waited long enough and 2025 is the year for you to make a move, we recommend front loading that decision. Pent up demand (both sellers waiting to sell and buyers waiting to buy) should give us a spring full of blossoming and beautiful inventory. There is less volatility in interest rates than there has been in recent months, you’ll see that the average rate has been rock steady around 6.75% in 2023 and 2024. Overall, this is a great time to buy or sell and I know your real estate professional is excited to help you!
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
From a statistical/real estate perspective, the numbers don’t really reflect the overall vibe of the year. In a good way! It’s all positive news: prices are up, listings are up, and market time is down. The City of Seattle is in full recovery mode. Homeowners are awaiting the new density plan and eager to learn what the city has in store for the core neighborhoods around transit. It’s an exciting time. Median sold price city-wide reached a record $945,000 (modest, as that is $5000 above the previous record set in 2022) and homes sold for an average 104% of list price when they attracted a sale in the first 10 days (58% of the total sales).
Lake Forest Park and Madison Park saw the greatest price gains at 11% and 12% respectively. North Seattle was over all the “strongest” with 66% of homes selling in the first 10 days and 70% of homes selling for at or above list price. There was a modest gain in new listings across the board at 8769, while still lower than typical. The ten-year average is around 10,500 listings per year. No bad news here with average price per square foot gains of 5% to $564!
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
Welcome 2025! We (the real estate community) are feeling hopeful and bullish about what’s to come. So far, the numbers year over year support that. When we reviewed 2023 for the Eastside, the only positive statistic reported was Mercer Island’s 2% rise in the number of home sales. Looking at the 2024 report with that perspective it is ALL good news. New listings are up 14% for the year, while the number of sales are up nearly 10%. This is absorption of inventory to be excited about. Prices are up 11% to a record high of $1,600,000!
Woodinville and the area S of I-90 saw the largest price gains at 16% and 14% respectively, likely enjoying the benefits of buyers ‘pushing out’ because of the pressure of affordability in the core neighborhoods. Kirkland and West Bellevue were among the highest total sales and still a strong showing in price gains at 11% and 8%. Even though Bellevue (E of 405) saw the most modest price gains this was arguably the most popular neighborhood with 74% of homes selling in the first 10 days and 71% selling for at or above asking price!
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
2024 was a solid year for Mercer Island: 11% overall price growth, on average 98% list to sales price ratio, and a respectable 32 cumulative days on market. This was a year of calm and confident decisions made by the entire real estate market. Home buyers and sellers alike. Looking to the neighborhoods there were two that stood out in relation to 2023: The Eastside and The Lakes where total sales had massive growth. 26 homeowners (vs 11 in 2023) moved on the Eastside and in the Lakes there were 4 transactions, a whopping change given that there were no sales reported on the MLS in 2023. The Island has not yet reached the peak prices from 2022, but we’re on our way!
Shifting to the condo market, 2024 was a sleepy year. With 47 new listings and 33 sales (both about 20% lower than in 2023), the average list to sales price ratio of 101% surprised us! Total median price is down YOY by about 8%, but with such little data to draw from this number tends to swing more than most. The overall price swing was from $339,000 for a studio to $1,775,000 for a 2 bedroom luxury unit. 19 of the 33 sales were 2 bedroom units. All in all condos on the island are a necessary market segment that we continue to watch closely as an overall indicator of market health.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
In reviewing last years’ report, there was so much RED! This year is a refreshing change with some positive numbers sprinkled in. Even the pockets that remain flat feel like good news, after all, a push is a win! Perspective is everything, in life and in real estate. This year was absolutely a bright spot for condos in the last several months. This was due in large part to external factors: affordability issues in single family, perceived ‘high’ interest rates, continued density issues in the ‘burbs, and major employers recall to office. Urban life in both Seattle and on the Eastside are experiencing a renaissance and we’re here for it!
The headline in Seattle is that prices are UP! Downtown saw an increase of 8% to a median price of $650,000. Though, North Seattle carried the day with an eye popping 18% increase in median price. While price per square foot was flat on average, new listings are up 21% YOY. Sellers are dipping their toes back in the market at higher prices (up 5.3%) and seeing moderate success with total sales down 3% (compared to a 26% drop in 2023). Buyers know they have options and will wait to pick off the low hanging fruit: best perceived value for their dollar.
Meanwhile, on the Eastside: prices are up, listings are up, sales are up. A nice headline, but let’s break it down. New listings rose a whopping 34% year over year (which you may remember saw a 23% dip from 2022). Demand was steady with total sales up 15% YOY; we didn’t quite absorb all of the new inventory but that is to be expected. So, even with a relatively high absorption rate prices rose to a record high median of $695,000. The stars of this price gain are, not surprisingly, Kirkland and West Bellevue at 28% and 24% respectively. We can’t wait to see what 2025 will bring!
Check out area-by-area details the full condo report.
WATERFRONT
The Eastside saw a huge boost in waterfront sales with 50% more sold in 2024 than 2023. Mercer Island and Lake Sammamish posted similar sales gains of 45% and 43% respectively. While Seattle had 2 fewer sales than the year prior, its waterfront homes sold faster than in any other area and fetched higher selling prices as compared to list prices.
The highest waterfront sale was $38,900,000 for an immense 13,590 sq. ft. Medina estate on 117 feet of Lake Washington shoreline. The most modest sale was $1,400,000 for a 1960 Ralph Anderson original on Seattle’s Arroyo Beach.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis with your trusted professional.
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2025, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and Trendgraphix, and deemed accurate but not guaranteed. Seattle cover photo courtesy of Michael Fleming and Clarity Northwest Photography. Mercer Island cover photo courtesy of The Sirianni Group and Clarity Northwest Photography. Condo cover photo courtesy of Luke Bartlett and Matthew Gallant, Clarity Northwest Photography.
Selling Your Home: 5 Common Myths
Selling your home is a crash course in real estate education. You’ll learn how to work with your real estate agent to find a buyer and sell at the right price. As you prepare to sell, it’s important to remember that that not everything you’ve heard is true. There are several common myths that can lead to costly mistakes in the selling process. Knowing the truth behind them will clarify your selling journey and help you align your expectations…
Myth 1: Home Value Calculators Are 100% Accurate
Online Automated Valuation Models (AVMs) are a great starting point for understanding how much your home could be worth. However, they are merely a first step in determining home value; to say they are 100% accurate is a myth. When it comes to pricing your home, you need to rely on your real estate agent’s Comparative Market Analysis (CMA), which uses vast amounts of historical and current data on real estate listings to arrive at an accurate and competitive figure.
To get an estimate of how much your home is worth, try our Home Worth Calculator here:
Myth 2: Selling FSBO Will Save You Money
Selling a home requires an intimate knowledge of the housing industry and how to solve the complex situations that arise throughout a real estate transaction. Despite this, some sellers will go it alone and attempt to sell their property without being represented by an agent.
Selling For Sale by Owner (FSBO) is a risky proposition. It requires the seller to bear added liability, fills their schedule with various marketing and promotional responsibilities, and can leave money on the table by inaccurately pricing the property, causing it to sit on the market for too long. The potential costs of selling a home on your own far outweigh the compensation real estate agents earn on a home sale.
Myth 3: You Must Remodel to Sell Your Home
The question you’ll face when preparing to sell your home is whether to sell as is or remodel. The answer usually lies somewhere in between, but it depends on your situation and what kinds of home upgrades are driving buyer interest locally. When making improvements to your home, lean toward high ROI remodeling projects to get the best bang for your buck, and avoid trendy projects that can delay listing your home. If you’re considering major upscale renovations, talk to your agent about which projects buyers in your area are looking for.
Myth 4: Never Accept the First Offer
You’ve likely heard tell that the first buyer’s offer is nothing more than a springboard to up your asking price and to never accept it. In this case, “never” should be approached with caution. In reality, the best offer for your home is one that you and your agent have discussed that aligns with your goals. If a matching offer happens to be the first one that comes your way, so be it. The market can shift at any time, so you never know what may happen if you leave an offer on the table. And if the buyer backs out of the deal, you and your agent will find a path forward.
Myth 5: Home Staging Doesn’t Make a Big Difference
Staging your home is so much more than a cosmetic touch-up; it has been proven to help sell homes faster and at a higher price than non-staged homes.1 Staging ensures that your home has universal appeal, which attracts the widest possible pool of potential buyers. When buyers are able to easily imagine living in your home, they become more connected to the property. You should stage your home regardless of your local market conditions, but it can be especially helpful in competitive markets with limited inventory where even the slightest edge can make all the difference for sellers.
Now that you know some of the most common myths in the selling process, get to know its truths. Connect with a local Windermere agent to get the process started:
1: National Association of REALTORS® – Why Home Staging Inspires the Best Prices in Any Housing Market
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
How’s the Market? Q3 2024 Review of Seattle Area Real Estate
While Q3’s summertime market slowed a bit from the frenetic spring pace of Q2 (we call this the “Summer Slump”), median home values are up across the region compared to this time last year. Most homes still sold at or above their listed prices in the first 10 days on market. However, buyers had more choice with higher inventory levels AND some room to negotiate on price for those homes that stayed on the market past the 10-day mark.
What does this mean for the rest of 2024? We typically see buyer activity decrease as we head into the holidays, and of course, it’s also election season. If you’ve been considering a purchase and are of the mindset that you don’t want to compete, THIS IS YOUR MARKET! For sellers the average days on market in Q3 was 20 for Seattle and 18 for the Eastside. Which means: if your price didn’t attract a buyer in the first two weeks, it’s probably time to re-evaluate. Interest rates are better than they’ve been since mid 2022. Quality inventory is being presented to the market. If you see a great house, be prepared to move quickly. Opportunity Knocks.
Click or scroll down to find your area report:
Seattle | Eastside | Mercer Island | Condos | Waterfront
SEATTLE
Lots of good news in Seattle during our post-summer glow. Prices are up year over year by 5% to $937,000. While we’re still under the peak median of $1,000,000 set in Q2 of 2022 and $970,000 from last quarter, this is so typical for Q3. We’ve seen it every year from Q2 to Q3 going back to 2018 (except in 2020 largely because the real estate market shut down completely in Q2). Buyers had lots of choice, with more inventory to end the quarter than we’ve had since Q3 of 2022. Even with these buyer bright spots we still saw 56% of homes sell in the first 10 days and 34% over the asking price.
Average price per square foot and median price were in positive territory across the board this quarter in all neighborhoods. Richmond Beach/Shoreline and Madison Park/Capitol Hill both saw larger than typical gains in $/sq.ft. (11%) and median price (10%) respectively. North Seattle appeared to be the “hottest” market around with 64% of homes selling in the first 10 days. Again, really great numbers in Seattle given that Summer Slump was in full effect.
Click here for the full report and neighborhood-by-neighborhood statistics!
EASTSIDE
The Eastside continues to be the region’s crown jewel of real estate. Median prices are up again year over year by 8%. Most of us felt what we lovingly call the Summer Slump, and the numbers confirmed this. Prices (median) AND transactions were down 6% overall when compared against Q2 of 2024. That’s a $100,000 dip in median sales price if you missed the spring market. This is absolutely typical for the PNW and Metro King County. Seasonally our peak seasons are spring and post Labor Day/pre-holiday. This year that may be disrupted by election distractions. Time will tell if it’s a market lacking in consumer confidence or simply existential distraction.
The micro markets across the Eastside are fairly homogeneous. Among the 8 neighborhoods that we track, the median price swing was 3-11% but all in a positive direction. Total transaction volume is up 18% signaling that eventually life changes will trump a 2.5% interest rate. While homes were mostly selling in the first 10 days, multiple offers/paying over asking price were not the norm. In fact, the split between at, above, and below was relatively even.
Click here for the full report and neighborhood-by-neighborhood statistics!
MERCER ISLAND
Fall has come for Mercer Island. The summer construction on Island Crest is done, school buses are out en force, and those filtered views that only come out in winter are starting to show. It’s time to look back fondly at the summer real estate market: prices are up YOY by 3% to $2,440,000 to end the quarter. This is likely more about trailing gains from a robust spring than it is about actual gains from Q3, given the indicators. A whopping 40% of homes sold under list price. It took 40% longer than 10 days to sell (not necessarily the same 40%) but only for about a 2% discount. This suggests that seller pricing and buyer motivation are evenly matched. There were 50 active listings at end of quarter, the most since Q2 of 2020 when real estate shut down completely.
Focusing on neighborhoods, The Lakes, Mercerwood, Mercerdale, and Mercer Island Estates saw 100% of homes sell in the first 10 days for an average of 102% of sales price. This goes to show that in any market, despite overall conditions, there will always be “hot homes.” Mid-Island had the most overall activity with 22 of the 68 sales across the Island. These occurred at $865/foot and 16 of the 22 homes sold in the first 10 days for at or above list price.
Click here for the full report and neighborhood-by-neighborhood statistics!
CONDOS – SEATTLE & EASTSIDE
Once again, we’re rooting for the Seattle condo market as it proves to be the little engine that could! Chugging along toward modest price gains even when the rest of the market seems to be struggling a bit, Seattle condo prices have held steady for the last 6 quarters, with mostly positive change. Eastside condos hit a median price all-time high in Q2 at $709,000. We’re off of that a touch to $690,000 in Q3, to be expected after a beautiful summer. The Eastside ended the quarter with 29% more listings than this time last year and only 13% more sales. Mounting inventory tends to lead to price softening. Overall, nearly 50% of condos sold for at or above their list price!
When you compare the charts in the report, there is admittedly more positive news on the Eastside than in Seattle. Overall, we’re encouraged that despite many neighborhoods experiencing a drop in sales, average price per sq. ft. held flat and median price is up overall. On the Eastside it’s still great news all around for the market, especially in West Bellevue with 26% median sales price gains and total sales up 55%.
Friendly PSA: PLEASE remember that there is a ‘first rung’ of the property ladder. CONDOS create an affordable option to start building wealth at a younger age. It’s an important real estate product that has been overlooked. I am hopeful that enterprising young homeowners return to the condo market in droves this next real estate cycle.
Check out area-by-area details the full condo report.
WATERFRONT
While a bit slower compared to last quarter, waterfront sales remained strong in Q3 with 10 on the Eastside and 8 in Seattle. Lake Sammamish moderated in summer with just 5 sales compared to the crazy 15 we saw in spring, while Mercer Island stayed fairly steady with 4 (compared to 6 in spring). The highest sale was nearly $18 million for an immense Wendell Lovett designed 6,920 sq. ft. home on 125 feet of prime “gold coast” waterfront in Medina. The most modest sale was also on the Eastside—an original 1943 cottage on 53 feet of west-facing waterfront in Kennydale.
This brief overview of the entire Seattle-Eastside private waterfront market, including Mercer Island and Lake Sammamish, illustrates the trends occurring in our region over time. This data is interesting and insightful but cannot replace an in-depth waterfront analysis with your trusted professional.
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© Copyright 2024, Windermere Real Estate/Mercer Island. Information and statistics derived from Northwest Multiple Listing Service and Trendgraphix, and deemed accurate but not guaranteed. Seattle cover photo courtesy of Kathryn Buchanan and Brandon Larson, Clarity Northwest Photography. Mercer Island cover photo courtesy of The Sirianni Group and Clarity Northwest Photography. Condo cover photo courtesy of Julie Wilson and Bobby Erdt, Clarity Northwest Photography. Waterfront cover photo courtesy of Anni Zilz and Andrew Webb, Clarity Northwest Photography.
Why Buyer Representation Matters So Much to Sellers
In today’s rapidly changing real estate landscape, understanding the critical role of buyer representation has never been more essential for home sellers. With the pending NAR settlement on the horizon, many sellers may not fully grasp the significant impact these changes will have on their transactions. The urgency to adapt is real, and overlooking the necessity of paying a buyer agent compensation could expose sellers to unforeseen risks.
Currently, home buyers are not allowed to roll their buyer agent compensation into their loan. This means they must bring cash to the table to pay their agent (if the seller is not offering buyer agent compensation).
Unrepresented buyers should be considered more than a minor hiccup—it can lead to a cascade of complications that jeopardize the entire deal. To safeguard your investment and ensure a smooth transaction, it’s crucial to recognize the invaluable support a buyer’s agent provides.
What value does a seller receive if the buyer has professional representation? Let us list the ways:
Lender Connections: Buyer agents connect their buyers with well-vetted (and typically local) lender partners who have proven time and again that they can close a transaction, and on time.
Documentation Management: Buyer agents ensure that buyers have delivered all necessary documentation to the lender to ensure full underwriting.
Market Analysis: Buyer agents provide comparable market analysis reports (CMAs) to help buyers understand the market value of the home and support a reasonable offer price.
Contract Guidance: Buyer agents guide their clients through the purchase and sale agreement, ensuring that they understand the terms and conditions and their ability to fulfill their commitments.
Contingency Explanation: Buyer agents explain all contingencies to buyers, ensuring they understand the risks and rewards, especially when waiving contingencies.
Earnest Money Handling: Buyer agents ensure that earnest money funds are delivered to escrow on time.
Transaction Deadlines: Buyer agents ensure that their client and their lender observe and adhere to all deadlines to keep the transaction flowing smoothly and closing on time.
Inspection Access: Buyer agents provide access to home inspectors and help their buyers understand the reports. This is critical as most MLS associations require an agent to be present whenever a door is opened. If the buyer doesn’t have representation, the listing agent must give access, exposing them to inspection findings and forcing them to disclose on behalf of the seller.
Appraisal Assistance: Buyer agents give access to appraisers and typically provide reports of comparable properties to support the purchase price, ensuring the property appraises at value.
Negotiation Support: If the appraisal report comes in less than the purchase price, the buyer agent will help negotiate and collaborate with the listing agent to ensure a mutual agreement is reached by all parties.
Transaction Coordination: Most importantly, the buyer agent helps keep their client and all parties on track to ensure closing, and crucially, on time.
The value a buyer agent brings to the transaction is indispensable. Their expertise not only facilitates a smoother process but also protects all parties involved from potential pitfalls. By ensuring the buyer has professional representation, sellers can avoid significant risks and secure a successful transaction. In the evolving real estate market, investing in buyer agent compensation is a wise decision that benefits everyone involved.
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Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
This article originally appeared on the Windermere blog on 5/29/24 & Inman News on 5/21/24.
Top 10 Predictions for 2024 Real Estate
Will 2024 be a good year for real estate? This question comes up a LOT, especially from those who are considering buying or selling a home in the near future. Housing economist Matthew Gardner weighed in with his top 10 predictions for what the real estate market will look like in the coming year. Here is what he had to say…
1. Still no housing bubble
This was number one on my list last year and, so far, my forecast was spot on. The reason why I’m calling it out again is because the market performed better in 2023 than I expected. Continued price growth, combined with significantly higher mortgage rates, might suggest to some that the market will implode in 2024, but I find this implausible.
2. Mortgage rates will drop, but not quickly
The U.S. economy has been remarkably resilient, which has led the Federal Reserve to indicate that they will keep mortgage rates higher for longer to tame inflation. But data shows inflation and the broader economy are starting to slow, which should allow mortgage rates to ease in 2024. That said, I think rates will only fall to around 6% by the end of the year.
3. Listing activity will rise modestly
Although I expect a modest increase in listing activity in 2024, many homeowners will be hesitant to sell and lose their current mortgage rate. The latest data shows 80% of mortgaged homeowners in the U.S. have rates at or below 5%. Although they may not be inclined to sell right now, when rates fall to within 1.5% of their current rate, some will be motivated to move.
4.Home prices will rise, but not much
While many forecasters said home prices would fall in 2023, that was not the case, as the lack of inventory propped up home values. Given that it’s unlikely that there will be a significant increase in the number of homes for sale, I don’t expect prices to drop in 2024. However, growth will be a very modest 1%, which is the lowest pace seen for many years, but growth all the same.
5. Home values in markets that crashed will recover
During the pandemic there were a number of more affordable markets across the country that experienced significant price increases, followed by price declines post-pandemic. I expected home prices in those areas to take longer to recover than the rest of the nation, but I’m surprised by how quickly they have started to grow, with most markets having either matched their historic highs or getting close to it – even in the face of very high borrowing costs. In 2024, I expect prices to match or exceed their 2022 highs in the vast majority of metro areas across the country.
6. New construction will gain market share
Although new construction remains tepid, builders are benefiting from the lack of supply in the resale market and are taking a greater share of listings. While this might sound like a positive for builders, it’s coming at a cost through lower list prices and increased incentives such as mortgage rate buy downs. Although material costs have softened, it will remain very hard for builders to deliver enough housing to meet the demand.
7. Housing affordability will get worse
With home prices continuing to rise and the pace of borrowing costs far exceeding income growth, affordability will likely erode further in 2024. For affordability to improve, it would require either a significant drop in home values, a significant drop in mortgage rates, a significant increase in household incomes, or some combination of the three. But I’m afraid this is very unlikely. First-time home buyers will be the hardest hit by this continued lack of affordable housing.
8. Government needs to continue taking housing seriously
The government has started to take housing and affordability more seriously, with several states already having adopted new land use policies aimed at releasing developable land. In 2024, I hope cities and counties will continue to ease their restrictive land use policies. I also hope they’ll continue to streamline the permitting process and reduce the fees that are charged to builders, as these costs are passed directly onto the home buyer, which further impacts affordability.
9. Foreclosure activity won’t impact the market
Many expected that the end of forbearance would bring a veritable tsunami of homes to market, but that didn’t happen. At its peak, almost 1-in-10 homes in America were in the program, but that has fallen to below 1%. That said, foreclosure starts have picked up, but still remain well below pre-pandemic levels. Look for delinquency levels to continue rising in 2024, but they will only be returning to the long-term average and are not a cause for concern.
10. Sales will rise but remain the lowest in 15 years
2023 will likely be remembered as the year when home sales were the lowest since the housing bubble burst in 2008. I expect the number of homes for sale to improve modestly in 2024 which, combined with mortgage rates trending lower, should result in about 4.4 million home sales. Ultimately though, demand exceeding supply will mean that sellers will still have the upper hand.
About Matthew Gardner
Matthew Gardner analyzes and interprets economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
Matthew also sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
Adapted from an article that originally appeared on the Windermere blog December 4th, 2023. Written by: Matthew Gardner.
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When is the Best Time to Buy or Sell a Home?
Market peaks, holidays, school, oh my! Once you’ve decided that you want to sell or buy a home, the when can be tricky to tackle. Many factors contribute to optimal timing. Scroll down for the pros and cons of selling or buying in each season.
While each season has its perks and challenges, your personal circumstances will be the most important consideration. Relocation, marriage, divorce, or other life changes may mean that it makes the most sense for you to move now regardless of market factors. If you have kids in school, it may be best to wait until after the school year to make your move.
If your timing is flexible, on the other hand, you’ll also want to consider things like the condition of your property—homes that need work or have challenges with location/layout may require a hot market (or serious lack of competing inventory) in order to sell. You’ll also want to analyze the micro-market in your neighborhood, including how many other listings are currently for sale. Check out our article on timing the market for some great tips on that.
Seasonal cycles are definitely worth considering. For sellers looking to get the maximum number of eyes on your home, it’s important to avoid listing during holiday weeks or inclement weather events like snow. Buyers might find it more difficult to purchase a home at the peak of the market when homes are selling like hotcakes. Below is a chart showing typical market activity based on a five-year average of pending sales.
When our clients ask for our advice on when to sell or buy, we typically analyze all of these factors along with seasonal pricing trends. Below are some of the pros and cons we tend to see for buyers and sellers in each season…
SELLING
BUYING
Pssst…we know decisions like this can feel overwhelming. Reach out any time for expert advice. We’re always happy to discuss your options and help you choose the best timing for your unique property, circumstances, and micro-market…
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2023, Windermere Real Estate/Mercer Island.
What Is an Adjustable-Rate Mortgage (ARM)?
Securing the most advantageous financing for your situation is an integral part of the success formula of buying a home. After getting pre-approved but once you’ve found the home you’d like to pursue, one of your primary tasks is exploring different loan products to see which best fits your situation. This is the fork in the road where you’ll need to decide between a fixed-rate mortgage and an adjustable-rate mortgage (ARM). The following information will help you gain a better understanding of ARMs to help you decide whether they’re right for you.
What Is an Adjustable-Rate Mortgage (ARM)?
After your down payment, your mortgage will finance the remainder of your home purchase. Whereas fixed-rate mortgages allow you to lock in a specific interest rate and payment for the life of your loan, adjustable-rate mortgages’ interest rates will fluctuate over time, thus changing your loan payment. It’s typical for ARMs to begin with a low introductory interest rate, but once that first stage of the loan has passed, they will begin to shift up and down. ARMs generally have a cap that specifies the maximum rate that can occur for that loan.
Let’s say you secure an adjustable-rate mortgage with 30-year terms, the first five of which are at a fixed rate. When the variable interest portion of the loan kicks in, your mortgage’s fluctuations will be measured against an index. If the index is higher than when you secured the loan, your rate and loan payment will go up—and vice versa. How often your ARM rates change depends on your agreement with your lender. Talk to your mortgage broker to learn more about the characteristics of adjustable-rate mortgages.
Pros and Cons of an Adjustable-Rate Mortgage (ARM)
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Different Types of Adjustable-Rate Mortgages (ARMs)
Hybrid ARM: As outlined above, a hybrid ARM begins with a fixed-rate introductory period followed by an adjustable-rate period. Typically, a hybrid ARM’s fixed-rate period lasts anywhere between three to 10 years, and its rates adjust at an agreed-upon frequency during the adjustable-rate period, such as once every six months or once a year.
Interest-Only ARM: With an interest-only ARM, you pay just the interest on the loan for a specified introductory period, then the principal payments kick in on top. The longer the introductory period, the higher your payments will be when the delayed principal payments enter the equation.
Payment-Option ARM: Not all states allow these loan products because they can get home buyers into hot water quickly if rates increase. They include flexibility to choose your monthly payments with a payment-option ARM, including interest-only payments and minimum payments that don’t cover interest.
Home Monthly Payment Calculator
To get an idea of how your mortgage payment will fit into your budget, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price.
Adapted from an article that originally appeared on the Windermere blog September 28, 2022. Written by: Sandy Dodge.
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2022, Windermere Real Estate/Mercer Island.
