It’s the Summer Slowdown...but Still Hot for Buyers and Sellers
Happy summer! I believe summers in the Pacific Northwest are the best with the beautiful weather and longer days ushering in an increase in outdoor activities… social gatherings, and…a palpable uptick in happy moods and smiling faces. You know, our housing market has seasons too. As this chart shows, for the last four years, we've seen the housing market emerge from its Winter hibernation early in the year with intense competition resulting in a final sale price above the asking price, which tends to peak in late Spring, and tapers off sharply once Summer is underway.
In our area, on the Eastside, the Median Closed Sales Price reached an almost record high of nearly $1.7 million compared to a record high $1,722,500 in April of 2022. Prices are up 17% from a year ago, while monthly payments are at a record high, up 25% from a year ago. The first five months of 2024 followed normal calendar year seasonality. Specifically, high demand and low supply, increasing the number of multiple offers and final sales price.
Looking forward, normal seasonality suggests more new listings will be taken… higher levels of active inventory… multiple offers decreasing… and sale prices staying close to current pricing. Broker anecdotal remarks during the past few weeks support that we are indeed experiencing these same trends. So, despite higher interest rates, demand also remains high and consumers have adjusted. As we can see from this trendline, home values continue to trend significantly upward… so, those inclined to wait for mortgage rates to drop will have to deal with higher base starting prices as well as increased competition as the other ‘waiters’ jump back into the market.
BOTTOM LINE
For Buyers: with slightly more inventory and longer market time ‘tis the season to take advantage of the slight slowdown.
For Sellers: a properly priced and well presented home will sell, BUT patience is key. So what's in store for the back half of the year? Well, home prices are expected to continue to climb, mortgage rates *MAY* come down slightly, and home sales are projected to hold firm.
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.
