Real Estate Market Update - April 2023
It’s interesting to note that whoever you speak with in the residential real estate industry with 10 to 20 or more years of experience, whether it’s brokerage, mortgage financing, home inspections or leasing, they’ll probably tell you the lowest activity they’ve experienced in their career was from September 2022 until February 2023.
Currently, the greater Seattle-Bellevue real estate market is about 9 weeks into the selling season with about 6 weeks remaining. The market overall market has been healthier and on trend with properties increasingly going under contract and closing. It’s a Sellers’ Market, however, some properties receive multiple offers while others do not; it’s a more tepid market relative to the consistent intense white hot Sellers’ Markets from about 2015 to 2022 in the Puget Sound area. As previously reported in February 2023, home values bottomed-out in January 2023 and, thereafter, have been moderately increasing following the 10 year trend line.
Looking ahead, the quantity of properties going under contract after early June tends to decrease, but picks up again in late August through September, and decreases again from October to mid-January.
However, I think it’s likely this fall (Q3-Q4 2023) could be a more vibrant market relative to past trends because I anticipate mortgage interest rates will decrease toward about +/-5.25% and, in effect, dramatically increase demand—and there’s a lot of pent-up demand. There will probably be a lot of refinancing in 12-18 months.
My advice to Buyers is not to wait and try and time the market. If Buyers choose to wait until rates decrease, it’s highly likely there will be a much stronger Sellers’ market to compete in, which will cause purchase prices to exponentially escalate while waiving all contingencies (e.g. finance, inspection, etc). Buyers should keep in mind the average 30-year mortgage interest rate from 1971 to 2023 was 7.75%.
I’m here to help you or someone you know with their real estate goals.