Despite Interest Rates Buyers & Sellers Have Adjusted
Hi there - I hope your summer is off to a great start. Like the temperatures, the housing market is heating up, thawing from the cruel real estate winter brought on by the perfect storm of sustained escalated values and rising interest rates. Consistent with the seasonal sales cycle, May brought a boost in overall home sales though the data shows that the housing market has roughly 40% fewer homes for sale than it did before the pandemic…. and the number of new listings keeps falling.
Locally, the Eastside saw 34% and Seattle a 22% decline in listings year to date. Many would be sellers are reluctant to give up their low interest rates impacting supply and the high interest rates are challenging buyer affordability. But forces of supply and demand are well in play: while not as dramatic as during the height of the pandemic, both Seattle and the Eastside showed both an increase in percentage of homes selling above list price – both areas breaking 40% this month - as well as an uptick in the median difference between list and sales price – 5% on the Eastside and 7% in Seattle.
Overall, despite serious headwinds, our market IS rebounding. Still, some are fearful of a repeat of the housing crash which experts continue to reassure us is not likely to happen. In fact, between the data and what I’m seeing in the field I can say the truly motivated buyers have made peace with the higher interest rates and, with the recent pause in rate hikes by the Fed, are jumping back into the market. But this pause in rate hikes is only temporary with the Fed indicating they’re likely to resume.
Buyers, bottom line- the market is recovering, rates are not going to go down significantly any time soon and trying to time the market is a fool’s errand. Sellers depending on price point, you may need to be patient as jumbo rates are over 7%. As always, make sure your home shows well and is priced appropriately.
So, whether you’re considering buying or selling in today’s market, reach out to me today for expert insights to help you achieve your real estate goals.
If you have any questions about this year's housing agenda, feel free to reach out. It's something I'm truly passionate about, and I would love to talk with you further.
Call/text 425-495-0926 - or email me anytime! ginam@windermere.com.
