Our Current Real Estate Market = "Need To's and Want To's"
Last month, hibernating buyers came out of their slumber and back into the house hunt, getting a jump on the Spring market. A recent Seattle Times headline read, “King County home prices drop for the first time since May 2020” and went on to cite a 7% drop in February, the first year over year drop since the Covid buying frenzy. But the latest data and what we’re seeing in the field offer a different perspective. Both the number of homes selling above asking price and the amount over list price have doubled between November of 22 and February of 23. And while the sale prices have decreased 21% from last year, the monthly mortgage payment has increased 5%, as rates shot up from 2.5 to high sixes.
As a result, affordability remains a significant challenge. Throw in broader economic concerns due to layoffs in the tech space which hits our region particularly hard followed by collapse of SVB and other banks, it’s no wonder potential home buyers or sellers are confused.
We are in a market of need to’s or want to’s.
Many sellers NEED to sell; perhaps they’re being relocated or going through a divorce. In other cases sellers WANT to sell but are reluctant to give up the low mortgage rate they refinanced into, exacerbating the low inventory problem. Many buyers WANT to buy but are waiting until their personal situation is more secure before pulling the trigger, in some cases deciding to rent until thing settle down. At the end of the day, we can’t predict the future but we do know that despite the rise in interest rates, buyers are still buying. And despite the collapse of SVB and other banks, this is not a repeat of 2008 so a home’s value is only going to increase over time. In an area plagued with a lack of housing inventory, this likely means that values will continue to rise and competition will continue to increase.
So whether you’re thinking of buyer or selling, now is the time for us to connect to discuss your goals and determine a strategy for your success.
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 or email me anytime! ginam@windermere.com.
