Real Estate Roundup YOUR PULSE on the market | 12.2022 Rising interest rates and rising home prices are battering the buying power of home buyers, as sellers also adjust to stand apart amidst rising inventory levels.
● Our region continues to work its way towards a traditional real estate market. Many first-time homebuyers who haven’t experienced a traditional market may not realize historically this is a great time of year to buy a home. ● Buyers are feeling the squeeze, however, as they find themselves caught between rising interest rates and rising home prices. As their buying power has taken a hit, home prices are still trending upward, although at a slower pace than recent years. ● Recently released statistics from the Northwest MLS show median closed sale prices for single-family homes are again up year-over-year in King County by 9.55%, in Snohomish County up by 5.04%, in Pierce County up 2.88%, in Thurston County up by 5.32%, in Chelan County up 15.05% and in Douglas County up by 12.47%. ● Inventory is also trending upwards but fewer new listings are making it to market compared with the same period last year.
● As interest rates hover around 7%, buyers are also encountering sellers who are fine-tuning their prices and willing to consider adjustments that help cushion the blow of higher interest rates for buyers. Earlier this year offers with contingencies were much less attractive, but now brokers are reporting sellers are ready to negotiate. ● Brokers are also seeing sellers who, having witnessed the recent market highs, are unwilling to lower prices and have decided to wait in hopes of a price recovery in the new year. For sellers that are willing to enter the market, they are finding success when they concentrate on proper pricing for the current market and ensuring the property is in good condition to attract buyers. ● The warm weather that continued later than normal into fall, played a big role in extending seasonal market activity. It’ll be interesting to see if the cold, wet weather and football season has a dampening effect on open house activity as we move into winter and the thick of the holidays.
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