Since I started my career in selling real estate, there has been plenty of talk about how good the market has been lately, second to what we've seen in California of course.
Bothel for example, according to our General Manager at our company-wide meeting in mid April '05, had seen prices increase by 26%. Meanwhile, the Northwest Multiple Listing Service--the largest MLS in our area reported that from March 2004 to March 2005, prices in Northwest Snohomish County rose more than 17%; Meadian prices rose more than 22%!
Meanwhile there is plenty of talk among agents in this area concerning the new outlet mall that is supposed to open on May 5th, 2005, as well as a Six Flags theme park that could be on the way right behind it. The expectation is that this will bring more jobs into the greater Marysville area and fuel a doubling of Snohomish County's total population by 2025 as many local authorities are predicting.
So given this extraordinary growth rate, how high is too high for a mortgage interest rate? at what point does the cost of money offset the enormous gains that could be made through real estate investments in our area?
I frequently need to point out to my first-time homebuyers that waiting say 6 months to pay off their car so that they can afford more house is not necessarily going to do the trick unless they have credit that is in need of repair. The $5,000 dollars that they put toward paying off their car comes with the added cost of aproximately $44,000 that home prices will have gone up during that 6 months.
Unfortunately, homeownership is slipping further out of reach for most but those who already own or expect their annual income to rise steadily by at least 17% until they are able to purchase.
To see current prices in and around Snohomish County, WA use the free search tools at my website: www.JoeGilesRE.com.
