Our Spring market is winding down, and the market is turning towards buyers favor
If the market is changing, why would a buyer buy?
• Predicting the future market is impossible….ask Wall Street
• Market timing is difficult to impossible. A buyer should buy when the time is right for them
• As with any market, Buyers should:
1. Like the location
2. Plan on living there for at least 6 years
3. Be able to afford the payment
• If the above three conditions are true, history supports time will take care of any market adjustments
• It is a home first and a financial investment 2nd
• You may actually be ready to become a Buyer instead of just making offers
• Buyers can be more selective, especially now, with the historically best three listing months to be May, June and July
• Buyers may be able to include inspection, financing, and appraisal contingencies. Possibly even negotiate credits/concessions!
What does a changing market mean for Sellers?
• Sellers may only get list price or less. You need to be ready to list at a number that is satisfactory to you, if you only get one offer at list price, will that be enough to get you to your next chapter?
▪ Multiple offers are slowing down. But there will still be strength in the terms of the offer that does come to you
• Consider carefully pricing near value and expect fewer offers
• Cautiously reconsider setting an Offer Review date, or maybe not setting one at all
• A Seller procured inspections is still relevant and can net you an offer with fewer contingencies
• Buyers may still see the list price as a starting place. Listing brokers may need to call
April Median Sold price for residential homes in Seattle reached $1,019,950
74% of homes listed in April sold _over_ list price
Median amount of overbid in April was +16% over List price, that buyers paid +16% over list price in bidding escalations
But the market may be reaching a peak
Predicting the market is difficult. The last correction was in 2018. In three years from June 2015 to June 2018 prices had risen $237,500 or+ 41% from $575,000 to $812,500.
During the same time, interest rates had increased from 3.98% to 4.57%.
Prices dropped 10% from $830,000 (May 2018) to $750,000 (Oct 2018) and took 22 months (October 2018 to Aug 2020) to recover and get back to $825,000