Buying or Selling? Adjusting to Our Market's Deceleration is Key
For the second month in a row, clients have reached out to get my take on what’s happening in our housing market. It seems as if things changed overnight, shifting from a major seller’s market to spurring talks of a housing crash. Most experts agree a crash is unlikely but we’ve known the pace of price acceleration wasn’t sustainable and would eventually slow. With the steady rise in interest rates coupled with fears of inflation, recession, stock market & economic instability, that time has come.
On the Eastside, April brought a flattening of median sold price, a lower percentage of homes selling above list price and the amount above list falling slightly from February’s high. Homes are staying on the market longer, many having to do price drops before getting under contract, and overall offers are less aggressive. Seattle on the other hand seems to be making a bit of a comeback.
After remaining flat through fall and winter, Median sold price in Seattle is on the rise as is their percentage of homes selling above list price along with the amount above list price. In both areas supply of inventory is on the rise and while some buyers have tapped out due to the increase in rates, there are still plenty of buyers in the hunt. We all wish we’d bought Tesla stock when it was $40 a share or bought a home or when rates were in the 2s.
And while you can’t change the past, you CAN create your future and here's what the experts all agree on: in 2022 they forecast continued price growth, an average of 9% across all forecasts; we’ll see prices will continue to rise but not at the 20-30% rates we’ve been seeing. Also continuing to rise are mortgage rates. And while it may sound weird, what’s happening now is a bit of a win-win for both buyers and sellers. Buyers have more choices and less competition.
Meanwhile, sellers can continue to benefit from strong demand while making sure their home shows in its best light and is priced well to target & draw in buyers. Whether buying or selling, we are in a period of adjusting to the market deceleration and patience is key.
As your trusted advisor, please let me know how I can help you understand and successfully navigate the current market to help you achieve your real estate goals.
Call/text or email me anytime! ginam@windermere.com.
