How Much Home You Can Buy For $200K In Washington

By Samuel Stebbins, 24/7 Wall St. - Seattle:

With home prices declining for over six months, some U.S. housing market conditions have shifted to favor buyers. Still, other conditions stack up against homebuyers, particularly mortgage rates. As inflation began to surge, the Federal Reserve raised interest rates nine times in 12 months in an attempt to stem rising prices. The cumulative 475 basis points Fed rate hike sent mortgage rates soaring, forcing many homebuyers to reevaluate their budgets and consider exactly how much house they can afford.

Since September 2022, the average interest rate on a 30-year fixed rate mortgage has been above 6%, the highest it has been in nearly a decade and a half. With historically high borrowing costs, many homebuyers are seeking more affordable markets. And in some parts of the country, a relatively modest housing budget goes a lot further than in others.

According to data from the Federal Reserve Bank of St. Louis, the median list price for a home in Washington was about $317 per square foot as of March 2023. Based on price per square foot, a homebuyer with a $200,000 budget can afford only a 631 square foot home, the seventh smallest of any state. A year earlier, the size of a $200,000 home in the state was 2.5% smaller than it is today.

Based on data from the U.S. Census Bureau’s 2021 American Community Survey, the typical home in Washington is worth $485,700, compared to the national median home value of $281,400.

Can't see the article's infographic? Click here to view the original story.

This story was originally published by 24/7 Wall St., a news organization that produces real-time business commentary and data-driven reporting for state and local markets across the country.