As we move into the Fall season, the combination of rising interest rates and the traditional winter slowdown is limiting the number of homes for sale. When compared to the same month last year, October 2023 experienced a -23% change in active property listings in Washington counties covered by the Northwest MLS. Across King County, active listings were down 30% compared to this time last year.
Interest rates have pushed some buyers out of the market. This combination of fewer buyers and especially low inventory resulted in pending sales being down 13% from one year ago in King County and down 10% in the City of Seattle.
Economists are pointing to the current market as a transition to a more stable market. While continued mortgage rate increases will make additional home price gains more challenging, home values should continue to slowly rise.
“The combination of low inventories and pent-up demand suggest that home price pressures will continue to mount and drive home prices up some 5% by next September,” said Selma Hepp, executive and chief economist with CoreLogic.
What does this mean for you?
FOR BUYERS
For buyers, if you're looking to stay in a home for 5 years or more, this is a good time to find a home with less competition than we've seen in the past years. Still be prepared for competition for homes in key locations. Interest rates are expected to ultimately lower. When that does happen, buyers who are on the sidelines will jump back into the market creating more competition for limited inventory. If you are in the market to purchase, a trusted local lender is crucial. They will watch interest rates and advise when it's time to lock in a rate and refinance.
FOR SELLERS
For sellers, limited inventory supports a continued sellers market. There are crucial differences with this market compared to that of 2 years ago. Market times are longer as a whole. The homes that are selling quickly are in key locations, move-in ready often with cosmetic updates and priced correctly.
Get in touch if you have any questions. Rely on my 25 years of experience to help you make the best decisions for your future real estate goals. Whether you're looking for an immediate change or something in the next 3 years, connecting now will help pave the way.