Owning a home on Seattle's Eastside means you’re likely sitting on significant equity, thanks to the area’s thriving housing market and strong property values. This equity can play a transformative role in your next move, whether you’re considering a home in Bellevue, Sammamish, Issaquah, Redmond, Mercer Island or Kirkland. Let’s explore how leveraging your home equity can lead to a cash purchase or a substantial down payment on your next property.

The Power of Eastside Home Equity

Home equity is the difference between what your home is worth today and how much you still owe on your mortgage. With Eastside home values consistently appreciating, many local homeowners find themselves with significant equity—often enough to consider buying their next home with cash or a large down payment.

For example, if your Eastside home is valued at $1.8M and you owe just $900K, you have $900K in equity. That’s a powerful financial resource you can use to avoid a large mortgage or reduce monthly payments on your next property.

Recent data from the Census and ATTOM shows how significant today’s home equity really is. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below):

Benefits of Buying with Cash

Using your equity to purchase your next home outright has major advantages:

• Eliminate Monthly Mortgage Payments: Free up your income for other priorities or investments.
• Stronger Negotiating Position: Cash offers stand out in competitive markets like Bellevue and Kirkland.
• No Interest Rates: With today’s higher mortgage rates, buying in cash can mean substantial savings over time.

Advantages of a Large Down Payment

If buying with cash isn’t feasible, a high down payment has its own perks:

• Lower Monthly Payments: The more you put down, the less you owe—and the lower your payments will be.
• Better Loan Terms: A larger down payment can secure more favorable interest rates and reduce private mortgage insurance (PMI).
• Increased Buying Power: Higher equity positions you to compete effectively in a fast-paced market.

Why Now Is the Time for Eastside Homeowners

According to CoreLogic, the average homeowner has $311K in equity, but Eastside homeowners often exceed that due to higher property values. And that’s part of the reason why the share of all-cash buyers recently reached a new high. According to an annual report from the National Association of Realtors (NAR), 26% of buyers were able to buy without a mortgage (see graph below):

Find Out Your Equity and Plan Your Next Move

Curious about how much equity you’ve built? Comparative Market Analysis (CMA) can help you understand your financial standing and plan your next move. Whether it’s buying your dream home in Medina or downsizing to a cozy condo in Kirkland, we’ll guide you through the process of maximizing your equity.

Bottom Line

Eastside homeowners are uniquely positioned to use their equity for a cash purchase or a large down payment, giving them an edge in today’s competitive market. If you’re ready to see how your home equity can fuel your next move, let’s connect.

Start planning your Eastside real estate journey today!

Individual Market Analysis for Eastside Cities (Live Statistics):

Sammamish:

• • • • Active Listings: Significant year-over-year increase in active listings.
      • New Listings: Higher number of new listings added in June 2024 compared to last year.
      • Pending Sales: Stable pending sales indicating steady buyer interest.

Redmond:

• • • • • Active Listings: Increase in the number of properties listed for sale.
        • New Listings: A notable rise in new listings, reflecting active seller participation.
        • Pending Sales: Slight decrease in pending sales, possibly due to fluctuating mortgage rates.

Bellevue:

• Active Listings: Substantial increase in active listings year-over-year.
• New Listings: A significant influx of new listings in June 2024.
• Pending Sales: Stable pending sales, showing consistent buyer interest.

Mercer Island:

• Active Listings: Increase in the number of active listings.
• New Listings: Higher number of new listings indicating seller confidence.
• Pending Sales: Slightly lower pending sales, influenced by market conditions.

Kirkland:

• • • • • • Active Listings: Growth in the number of active listings.
          • New Listings: Increase in new listings compared to last year.
          • Pending Sales: Stable pending sales, with consistent market activity.

 Buyers:

Act Quickly: Given the low inventory and high competition, it's crucial to move quickly when a desirable property becomes available.

Prepare Financially: Ensure your financing is pre-approved and be prepared to offer above the asking price in highly sought-after areas like Bellevue and Redmond.

Start Your Home Search Here

Sellers:

• Leverage the Market: The current market conditions favor sellers. With high demand and low inventory, you can expect to sell your property quickly and potentially above the listing price.
• Enhance Property Appeal: Invest in staging and minor renovations to make your property stand out and attract competitive offers.

Our Listing Process

With Shane & Anne, our mission is to prioritize our clients in every aspect of the real estate journey. We are committed to providing exceptional service and expertise in the luxury real estate market. Guided by our core values, we strive to build lasting relationships based on trust and mutual respect.

Our Core Values:

• Loyalty: We are unwavering in our commitment to our clients, always putting their needs and interests first.
• Honesty: We operate with the highest level of integrity, providing truthful and transparent communication at every step.
• Confidentiality: We respect our clients' privacy and handle all transactions with the utmost discretion.

We are committed to staying ahead of market trends and continuously enhancing our skills and knowledge to deliver unparalleled results. Our goal is to make the real estate experience as smooth and rewarding as possible, ultimately helping our clients achieve their real estate dreams.

*Live statistics derived from the Northwest Multiple Listing Service