Catherine Weir
QUARTERLY UPDATE MAY 2022
SPRING MARKET UPDATE Hello, Catherine Weir with Coldwell
Banker Bain bringing you a Spring Market update. The real estate market today in May is quite different from the market we were seeing in the first quarter of the year. The main cause of the market adjustment is interest rates. In a move to slow down inflation the Federal reserve has increased the Fed fund rate. This caused banks to increase their mortgage lending rates. In around one month we have gone from interest rates at around 4% to some as high as 6%. So, what does this mean for Seattle super-hot housing market? As the cost of borrowing money has increased it does limit what some buyers can afford. WHAT ’S INS I DE
Eastside Market Updates, pg. 3
Fortunately, in the Seattle area many would be home buyers have absorbed that increase in interest rate for now. In addition, recently the stock market has had a bit of a wild ride with Tech stocks taking quite a hit. The Seattle Real Estate market has certainly changed. The amount of uncertainty the rate hikes have brought with them have made buyers much more discerning about what they are buying. For example, when I was seeing 4 or 5 offers on a home now, I am seeing one or two. In addition, I am not seeing homes selling for 20 and 30% over asking price. Now we have settled to much closer to asking price, maybe some homes are