Catherine Weir
QUARTERLY UPDATE AUGUST 2022
if the housing market is correcting—why are home prices still soaring? Home prices have continued to rise, despite the
national housing market being in the throes of a correction, a slowdown—whatever you want to call it. It’s defying what many experts predicted, and conventional wisdom. If you have listened to anything real estate related you would have heard that home buyers can’t afford higher home prices on top of the recent much higher mortgage interest rates. Deals are falling through. Bidding wars are drying up. Six-figure offers over the asking price are gone. So, how is it possible that median home list prices were 16% higher nationwide and 10% higher in King County at the end of July than they were a year ago? Buyers in our local area are still buying when they feel like they see value in a home. In King County and particularly the Eastside where the median price is close to $1M buyers can still absorb those interest rate hikes and will snap up what feels like a deal. The disconnect in listing prices is that home sellers have yet to adjust to
WHAT ’S INS I DE Eastside Market Updates, pg. 3
this new reality—the one where they can’t put whatever price they’d like on their properties, sit back, and wait for the bidding wars to commence. Surging mortgage rates have made it more difficult for many buyers to afford what they could have just a few months ago. While home prices are still up more than 10% in our area over the past year, prices are adjusting slowly. In fact, prices did take a dip locally over last month and are down around 3% compared with May. Sellers are shaped by recent experiences and stories. Before listing prices start coming down sellers will have stop shooting for the moon. Just because sellers are asking for more money, it doesn’t mean they’re getting it. Buyers are negotiating and finally have some choices. The number of price reductions on properties doubled in June compared with a year earlier. This is coupled with much more inventory hitting the market. The most recent data shows that more homes than ever were listed in July with an increase of 120% over last year and up 45% in King County over last month alone.
Q 3 2 022
Why Are Home Prices Still Soaring? continued...
King County
“June saw more houses go on the market. Home prices were lower over last month, but higher over the previous year.”
The top question on the minds of homebuyers and sellers alike is whether home prices are going to fall— and if so, by how much. My prediction in our area is that the rate of price increases will slow down as the year goes on. I believe this is because the number of investors and aspiring homeowners right now far exceeds the number of properties for sale. Builders have struggled to ramp construction back up since the mid-2000s, and investors have bought many of the properties and turned them into rentals. Add all the tech jobs going back in the office in the Puget Sound area and that demand will continue to keep prices high.
any pre-pandemic year, it’s still a pretty hot real estate market. While there aren’t nearly enough properties on the market to ease the housing crunch, more homes for sale, more choices and more negotiating power is a reason for buyers to get optimistic. Whether you are looking to buy or sell connect with me your local market expert.
The wild card in all of this is a recession. If there is an economic downturn, then home prices and mortgage rates are more likely to adjust. Home prices aren’t expected to drop off a cliff if there is a downturn the way they did during the Great Recession. To see a big decline in home prices, you need to see a lot of foreclosure and distressed home sales at big, discounted prices. This is unlikely because mortgage lenders have been very cautious since the crisis and therefore homeowners are in a position to weather a slower market simply by staying put. In conclusion, it is a great time to be a buyer. The best in terms of negotiating ability that I have seen in about 4 years. Home prices are still higher than they were pre- pandemic and I expect that they will slow but not decrease in value much more than what we are currently experiencing. The housing market is not as hot as it was last year however when compared to
Connect With Me! C E
206.313.9714 catherineweir@cbbain.com facebook.com/catsyweir linkedin.com/in/catherineweir/ instagram.com/catsyweir/ youtube.com/channel/UCmu4AZ16UNVp7W1F5p4Ib4A
CURRENT vs PREVIOUS MONTH
CURRENT vs PREVIOUS YEAR
CURRENT vs Same QUARTER LAST YEAR
Jun 22
May 22
% Change
Jun 22
Jun 21
% Change
Jun 22
Jun 21
% Change
1105
763
+44.8%
1105
308
+258.8%
1105
308
+258.8%
Sold
684
774
-11.6%
684
989
-30.8%
2177
2657
-18.1%
Pended
525
681
-22.9%
525
944
-44.4%
1898
2608
-27.2%
Avg Sq Ft Price (Sold)
$646
$698
-7.4%
$646
$570
+13.3%
$684.63
$564.53
+21.3%
1.6
1.0
+60.9%
1.6
0.3
+417.4%
1.1
0.3
+237.1%
For Sale
Months of Inventory (Closed Sales)
June 2022 WAs a BUYER’s market! The number of homes
listed for sale was up from one year earlier and from the previous month. The number of homes under contract was down compared to the previous month and down compared to the previous year. The Months of Inventory based on Closed Sales is up significantly from last year. Based on the 3 month trend, the Average Sold Price is up a whopping 21.3% over last year. The Average Days on Market is up over last month and compared with last year.
Homes on the Eastside are closing at 100% of the listing price a slight decrease of -8.3% compared to the previous year.
Q 3 2 02 2
Eastside Update
Catherine Weir Coldwell Banker Bain 1151 NW Sammamish Rd #103 Issaquah, WA 98027
Just sold | $2,900,000
12513 NE 65th Street, Kirkland, WA 98033
Just sold | $2,400,000
3318 259th Place SE, Sammamish, WA 98075
“I value each and every one of my clients and always negotiate to get them the best terms possible. When you want first class service from someone that is honest, straightforward and an advocate for you – make me your first call.”
Catherine Weir