Most experts agree that the robust housing market since 2016 came to a sliding stop in early 2022. However, they use various levels of sugar-coating in their statements. It happened subtly but firmly. By October 2022 end the number of homes sold had dropped by about 30%, compared to one year ago, according to the National Association of Realtors. The main factor to cause this was a steep and rapid increase in mortgage lending rates. These rates are currently at a 20-year high level.
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The old Chinese saying ” may you live in interesting times ” applies to our current housing market. We have experienced double-digit price increases in home values in recent years. A mad rush to buy homes during the pandemic, combined with the homes being in short supply and near-zero interest rates for mortgages, inflated house prices by over 40%, shutting out many first-time buyers during the last couple of years.
U.S. Federal Reserve has hiked the interest rates by a cumulative 255 basis points since March, and more are expected over the coming months, essentially guaranteeing a slowdown in the housing market which is highly sensitive to the cost of borrowing.
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The current real estate housing market has been transitioning to a buyer’s market since about May 2022. At the same time, due to mortgage lending rates climbing high and quickly, it has squeezed out the essential segment of home buyers. In 2021, one could buy a house worth $759,000 with 20% down and a monthly payment of $2500.00. Now, that monthly payment will get you a house worth $476,000.
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How robust is Seattle’s real estate market? Consider these recent stats.
Is that robust enough?
However, this chaotic real estate market has softened a bit in recent weeks. It is taking a little longer for a house to sell. There are also more price reductions. BTW, we now use more exotic words like refreshed pricing or improved price rather than a good old price reduction.
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If you pay any attention to the housing market news, you know that we are currently amidst one of the strongest sellers’ markets. It has slowed down a bit in recent weeks. It is difficult to determine if it is the usual summer slowdown or if the market has run out of steam. This article is about how to get your house ready to sell, regardless of the market demands. Seller’s or buyer’s market, you must present your home as best as possible to get the highest price.
The optimum lead time to start preparing your house to sell is three to six months, depending upon repairs and improvements that might be needed. The more time you allow yourself to prepare, the easier and more cost-effective it will be for you.
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What is my home worth? This question is the first step when people start to think about selling their house. Having the most current and up-to-date data about recent activity is crucial to answering this question. This blog post is unique. It includes live graphs that show you the last twelve months’ data for Redmond, Sammamish, Kirkland, and Bellevue. If you require more extensive data, please reach out and we will get you what you seek. A broader picture shows that the demand for homes increased significantly starting in the summer, while the supply went down a lot, mostly due to homeowners are not eager to sell during COVID-19 unless there is a dire need to do so.
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Savvy buyers and sellers know that our real estate market is vibrant, complex, and nuanced.
At BN Real Estate, we follow a nine-point home-buying system to serve our “buyer clients.” You can learn more specifics about this extremely effective approach here. For an in-depth understanding of the buying process and to be equipped to jump into today’s highly competitive market, pick up Broker Nadir’s book at Amazon.
Being in a seller’s market, like the one we have now, having several buyers clamoring to get their offer accepted makes things even more complex for the home sellers.
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The current sentiment that the real estate market is crazy is the aptest description. Buying a home in 2021 has become a very different experience. It does not serve homebuyers very well, who feel helpless as the market demands compel them to give up their legal protections. There is no way to predict when the market conditions might improve.
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The demand for homes remains on the rise. There was a substantial 39.3% increase in new homes coming on the market during December 2020, compared to the same month a year ago, for the entire NWMLS system. King County had more than a 60% increase in new listings compared to a year ago. Buyers eager to own homes quickly absorbed this added to inventory.
A total of 5,260 new listings came on the market. This was the most extensive new-listing activity since 2010 when the number was 5,460. Yet, demand is even higher. Across the NWMLS, for single-family homes and condos that closed last month, prices jumped nearly 12.2% from a year ago, increasing from $435,000 to $488,000. The averages are different on the Eastside. In Kirkland, the average home price is $1,031,089. In Redmond, the 98052 zip code average home price is $841,592 and in the 98053 zip code, this number is $895,671. In Sammamish, 98074 zip code the average home price is $922,461 and in the 98075 zip code, this number is $1,057,799.
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Having a pre-qualification letter just indicates that you discussed your financial situation with someone at the mortgage lender’s office. It indicates that you did not provide any documentation. And the lender didn’t verify any of the verbal information that you gave them.
It indicates that the lender merely considered the broader guidelines. And concluded that you are likely to be approved for a loan of up to a certain amount. Then the lender issued you a letter stating that they have pre-qualified your loan application.
