The real estate market in the Pacific Northwest is experiencing an interesting shift as we move through the final quarter of the year. While the market experienced a typical slowdown in August, more listing usually come on the market September & October. In addition, there was a small 1% overall median price change year over year, suggesting that home prices have relatively stayed the same. In this article, we will take a look at the latest market trends and explore what this means for both buyers and sellers.
Local Market Overview
King County Residential Closed Sales
- Median Sale Price: $906,250 August 2023/ $899,999 August 2022 (+1% Year Over Year)
- Housing Supply: 1.4 Months
Snohomish County
- Median Sale Price: $730,563 August 2023/ $749,999 August 2022 (-1% Year Over Year)
- Housing Supply: 1.09 Months
Pierce County
- Median Sale Price: $549,950 August 2023/ $555,000 August 2022 (-1% Year Over Year)
- Housing Supply: 1.43 Months
Market Dynamics
Market Watch (Current activity within the last 7 day from 9.25.23)
- New Listing: 980 new listings this week
Housing Supply and Timing
- The August housing supply in King County stands at 1.4 months, Snohomish County has 1.09 months, and Pierce county has 1.43 months. Low inventory, suggests that it is still a sellers market.
Mortgage Rates
- Mortgage rates remain a crucial factor in the real estate market. While there is uncertainty, it is suggested that rates may stabilize in the coming year.
- This presents an opportunity for buyers to make purchases at a good price, as when interest rates decrease, home prices are likely to increase. A great example is the spring market, where rates dropped marginally, leading to bidding wars and price increases.
Market Predictions
- Trends
- Historically, August has been the slowest month in the real estate market.
- Sellers are hesitant to give up their low-interest rate mortgages, creating a shortage of homes for sale. (lock-in effect)
- Buyers face high-interest mortgage rates, which affect affordability.
- Since January, home prices have been appreciating steadily, but there is a deceleration of this appreciation.
- The market is currently in a phase where home prices are staying steady or appreciating slightly.
- Confidence in the Market
- Market experts are confident that prices are unlikely to come down significantly.
- However, as interest rates decrease, buyers may end up paying more for their homes, even if prices remain stable.
Conclusion
The Pacific Northwest's real estate market is transforming, with rising inventory, shifting dynamics of housing supply, and the likelihood of fluctuating mortgage rates. While it is difficult to predict future trends with absolute certainty, the current data suggests that now might be an opportune time for buyers to secure properties at favorable prices, as the real estate market landscape continues to transform. Whether you're a buyer or seller, staying informed about these market developments is essential for making well-informed decisions in the ever-changing world of real estate.
