Don’t Wait To Buy Real Estate – Buy Real Estate And Wait!
Happy New Year! Let the Rush Begin! As the holidays wind down, buyers and sellers are coming out of hibernation. Many hopeful that interest rates would go down and coincide with their renewed home buying pursuits are disappointed to see rates hovering near 7%. Still, experts agree rates will likely come down to around low to mid 6s in 2025. To be fair it’s hard to adjust to current rates when the mid 2s and 3s aren’t that far in the rear view. Bear with me as I share the boiling frog apologue… Place a frog into boiling water, it will jump out. BUT if the frog is put in tepid water and brought to a boil slowly, it will not perceive the danger and be cooked to death. I equate the aggressive escalation in interest rates last year to the boiling water causing the frogs- - or buyers - - to jump OUT of the market. The higher rates caused many buyers to put their search on hold. Remember, for every 1% rise in rates, a buyers’ affordability is impacted by 10%; many were simply priced out of the market. As a result of rates, value growth is not as aggressive but still rising due to the mismatch between available supply and strong demand.
On the Eastside, the median home price of $1,535,000 is up 1% month over month but 7% year over year. Last month 29% of all sales went over asking by a median difference of 14. It will be interesting to monitor the Seattle as the city council continues to focus on improving safety, update their comprehensive plan to allow more housing and assess the impact on housing demand due to return to work policies.
Returning to the story, if temperatures are raised slowly, the frog doesn’t notice it – until its too late. The parallel here is that buyers are getting acclimated to the rising temperatures of the rate environment. It’s not great but it is what it is and steadfast and determined buyers are accepting this and finding ways to make homeownership a reality. The danger for buyers is NOT finding a way because as the data shows, values ARE rising and that, coupled with the impact of rates on affordability, could spell challenges. If you wait for rates to drop you’ll face increased competition from the other buyers who waited to enter the market. While more challenging, we CAN get you into a home despite stubborn mortgage rates. And this adage is so true: Don’t wait to buy real estate – buy real estate and wait!
Turning to sellers, while the market dynamics continue to favor you, it’s important to recognize the headwinds buyers are facing. It’s imperative that you prepare your home so it shines and minimizes the post-sale work a buyer might have to do. Many are stretching their dollars to get into a home and don’t have much extra to paint, or clean the gutters or service the furnace. If you’re thinking of selling it’s critical to engage an experienced REALTOR® to help you decide what repairs are best and to recommend an appropriate listing price. DO the touch ups, price it appropriately and you WILL attract more buyers and better offers. So, whether this is the year you buy or sell a home, reach out today so we can chart a course for your success.
𝙄𝙛 𝙮𝙤𝙪’𝙙 𝙡𝙞𝙠𝙚 𝙩𝙤 𝙡𝙚𝙖𝙧𝙣 𝙢𝙤𝙧𝙚 𝙖𝙗𝙤𝙪𝙩 𝙩𝙝𝙞𝙨 𝙤𝙧 𝙤𝙩𝙝𝙚𝙧 𝙬𝙖𝙮𝙨 𝙩𝙤 𝙗𝙚 𝙨𝙪𝙘𝙘𝙚𝙨𝙨𝙛𝙪𝙡 𝙞𝙣 𝙤𝙪𝙧 𝙨𝙝𝙞𝙛𝙩𝙞𝙣𝙜 𝙢𝙖𝙧𝙠𝙚𝙩, 𝙥𝙡𝙚𝙖𝙨𝙚 𝙧𝙚𝙖𝙘𝙝 𝙤𝙪𝙩 𝙖𝙣𝙮𝙩𝙞𝙢𝙚. 𝙄’𝙢 𝙝𝙚𝙧𝙚 𝙩𝙤 𝙝𝙚𝙡𝙥!
Questions about buying or selling? Reach out today, I'm here to help.
Call/text 425-495-0926 - or email me anytime! ginam@windermere.com.
