Buying a Home in Kirkland, WA: Market Outlook for 2022

Published:
August 22, 2018
Last updated:
December 6, 2021
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This article is part of an ongoing series for home buyers across the Seattle metro area. Today, we have an update for those planning to buy a home in Kirkland, Washington in 2022.

Are you planning to buy a home in 2022? Have you narrowed your search down to Kirkland, Washington? If so, you’ll want to get familiar with the local housing market to help ensure that you make a sound purchasing decision, and this article will fill you in on what the market is like in Kirkland in 2022.

How the Kirkland Housing Market Is Similar to Seattle

In many ways, the real estate market in Kirkland mirrors Seattle, its neighbor to the west. Both areas have a major shortage of housing supply, relative to demand. This makes things very competitive for home buyers who are seeking a property to buy.

Additionally, price trends in both areas have been similar over the last couple of years. The median home value in both cities increased over the past year. More specifically, home prices rose 11% and 20.4% in Seattle and Kirkland, respectively, according to real estate reports.

The third thing these markets have in common is quick sales. Whether you plan to buy a home in Kirkland or Seattle, be prepared to make a strong offer in a timely fashion. Properties listed for sale tend to generate offers in a matter of days.

Lastly, home prices are rather similar in both Seattle and Kirkland, which we will get into next.

Home Prices Set to Rise in Kirkland in 2022

According to the real estate information company Zillow, the median home value for Kirkland, Washington is around $1,045,399, as of December 2021. Prices in Kirkland have increased over the past 12 months, and they are expected to rise over the course of 2022.

This is a trend being seen in many U.S. cities right now.

So that’s an important thing you should know about buying a home in Kirkland. Buyers today are encountering high house values as a result of steady appreciation over the last few years. And while no one can predict future housing trends with complete accuracy, the consensus outlook is that home prices across the Seattle metro area will be trending north.

Live Kirkland Mortgage Rates

Inventory Will Continue to Be a Factor in 2022

There are plenty of folks in the market to buy a home in Kirkland, but not enough inventory to go around. This has been the big real estate headline for the last couple of years, in housing markets across the Seattle area. In fact, Seattle and Kirkland are two of the tightest real estate markets in the country right now when it comes to supply.

As of December 2021, Kirkland has just barely over a one-month supply of homes for sale. That’s well below what is considered to be a balanced market, and it indicates a strong seller’s market. It also accounts for the quick sales mentioned earlier.

Given this, conditions are pretty tight within the local real estate market. So buyers will want to give themselves plenty of lead time when shopping for a home in the area. It also helps to be flexible and open-minded, in terms of the property features you want.

Mortgage Rates Remain Low

Right now, mortgage rates are somewhere around 3.11%, which is near historic lows. Low mortgage rates make home loans much more affordable, and locking a low rate today can afford buyers with plenty of savings.

At the recent 10-year high in late 2018 when the rate for a 30-year fixed-rate mortgage hit 4.94%, you would be paying a lot more in mortgage payments based on the same home price as compared to today.

Let’s illustrate how much less you might be paying. Given today’s average home price in Kirkland of $1,045,399 and a 20% down payment, here’s how your mortgage payments compare for today’s rate and the rate you would have paid just a few years ago:

  • Monthly mortgage payments based on a rate of 4.94%: $4,433
  • Monthly mortgage payments based on a rate of 3.11%: $3,566

That’s a difference of $867 every month! While there are other factors that impact the cost of a mortgage, the rate you pay certainly plays a key role.   

According to the Mortgage Bankers Association (MBA), mortgage rates are expected to average around 4% by the end of 2022. And while that may be slightly higher than where things are at today, it’s still relatively low. That’s great news for buyers looking to buy in Kirkland in 2022, as it can make home buying more attainable.

In closing, five tips for Kirkland home buyers in 2022 :

  • Start your housing search early to account for limited supply in the market.
  • Be prepared for “lively” competition from other buyers.
  • Consider making your first offer a strong one, supported by recent sales data.
  • Get an experienced agent on your side, so you can move quickly when necessary.
  • Consider buying sooner rather than later to avoid (possibly) higher housing costs.
  • Lock in a mortgage rate today to ensure a low rate and greater savings.

Related: Buying in Lynnwood, Washington

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Need Financing in Kirkland, WA?

If you’re in need of a home loan to finance a home purchase in Kirkland, WA, then we’d love to help. Sammamish Mortgage is a local, family-owned company based in Bellevue, WA. We offer a variety of mortgage programs for borrowers in Washington, Oregon, Idaho, and Colorado. Please contact us if you need a mortgage loan to buy a home in Kirkland, or if you have any financing-related questions.

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