Market Updates Around the Puget Sound
For the past few years, the real estate market has undergone some major shifts. Given the coronavirus pandemic, inflation, and major global events, it’s no surprise that we’ve seen a market affected by turbulent times. However, in uncertain times, it is reassuring that despite what the world looks like, there will always be a silver lining in real estate. Folks will always want to buy and sell homes, invest in property, and transform their lives through remarkable real estate moves! So, what does the market currently look like? And how can we most strategically and productively navigate the turning tides?
Earlier this year, sellers were in a powerful position as we saw buyers enter competitive bidding wars as soon as listings hit the market. This frenzied state was simply not sustainable for anyone. Now that the market is balancing out, buyers and sellers alike can both thrive. I consider this a sign of a healthy market, one that’s finally healing even amid current challenges like high mortgage rates.
Rent prices continue to go up, pushing buyers who maybe would have waited to enter the market to begin their home search sooner. Why continue to spend money on unpredictable rent costs if they could begin putting money into their future? If mortgage rates are causing them to pause, remind them of the possibility of refinancing. A high mortgage rate right now does not mean a high rate forever. This is where open communication comes in. Encourage your clients to voice their concerns to you. Oftentimes, it’s an issue that you’ve dealt with before and know exactly how to tackle again!
Plus, buyers are in a more powerful position than they were previously, with more agency and less pressure to waive contingencies. And Seattle area real estate is still an amazing bet. With the West Seattle bridge finally open, experts are saying home prices in that area could skyrocket, a further incentive for buyers to strike now. As tech companies continue to grow, infrastructure improves, and the vibrant culture of the city returns to what it was before the pandemic, property in Seattle will only become more valuable. Take a look at how specific neighborhoods in the area are behaving with Realogics Sotheby’s International Realty’s Q2 Market Trends.
In June, Fed Chair Jerome Powell stated, “We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again.” In other words, we need a more balanced, stable market and a bit of a “reset.” No doubt we were all seller-focused when inventory was low and prices were soaring, but this new phase could be a great chance for us to really focus on our buyers and provide them with the guidance and experience necessary to enter the market. News about a “home price correction” should not dissuade brokers or developers. It doesn’t mean a crash is on the way; it signals a restorative change.