The Cascade Team Blog - Market Conditions

Odds of Homes Prices Continuing to Fall in Greater Seattle Area Elevated to “VERY HIGH”

What's going on? High-cost tech hubs, like San Francisco and Seattle, are getting hit hard by the tech slowdown. Not only are their high-end real estate markets more rate sensitive, but so are their tech sectors.

Back in June, Fed Chair Jerome Powell made it clear to reporters: The Pandemic Housing Boom was over. Heading forward, he said, spiked mortgage rates would push the U.S. housing market into a slowdown.

“We saw [home] prices moving up very very strongly for the last couple of years. So that changes now. And rates have moved up. We are well aware that mortgage rates have moved up a lot. And you are seeing a changing housing market. We are watching it to see what will happen. How much will it really affect residential investment? Not…

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Home Values on Zillow Just Fell for the First Time in a Decade

Home values decreased for the first time in a decade, according to Zillow, and that's just one of several signs it's finally getting easier to buy a house.

The Zillow Home Value Index dropped in July for the first time since 2012, according to new data from the real estate website. The index, which uses Zillow data to measure the value of a typical home, fell 0.1% on a monthly basis.

That decrease may not seem like a lot (home values are still significantly higher than they were last year and the year before), but it’s likely a welcome relief for buyers who have been struggling in the red-hot market.

"Home values flattening so quickly after recent record growth might surprise,” Zillow Chief Economist Skylar Olsen said in a news release, “but…

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Housing Market Recalibrating as Market Shifts Towards Buyers

•          Buyer opportunities have returned to the Puget Sound market
•          Active listings have nearly doubled from a year ago
•          The market balance is favoring buyers
•          “We are seeing builders moving their price points down and providing incentives to buyers in closing costs and buydowns to help borrowers obtain lower interest rates.”
•          Overpriced listings have missed the market.

KIRKLAND, Washington (August 4, 2022) – New statistics from Northwest Multiple Listing Service confirm reports of a shifting housing market, prompting one industry leader to suggest “all parties involved in a transaction today have to recalibrate.”

“Today’s buyers have their cups finally overflowing with options as residential…

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SHOULD I SELL MY HOME RIGHT NOW? SHOULD I BUY

Growing Number of Experts Calling for Substantial Home Price Declines

• Significant price declines lie ahead, many experts argue.
• Insider recently spoke with three experts calling for median home prices to fall.
• Recession fears and rising interest rates have started to cool interest in the U.S. housing market.
• Poor consumer sentiment implies home prices may decline this year and next.

One of the most remarkable developments in the post-pandemic economy has been the sharp rise of the housing market. Despite initial pandemic fears, people with means rushed into the real estate sector in 2020, inherently driving up home prices. The Federal Reserve also dramatically reduced benchmark interest rates, spurring acquisitiveness.

But what…

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The Housing Market Faces Its Biggest Test Yet

Compared to a year ago, Northwest MLS (NWMLS) brokers reported:

•          Significant jump in inventory,
•          double-digit drops in both pending and closed sales
•          And the smallest year-over-year (YOY) increase in prices since June 2020.

What the changes mean in general terms are:

•          More houses on the market
•          Longer market times
•          Stabilizing home prices
•          Fewer showings and open house visitors
•          Fewer offers at one time
•          And more price adjustments

KIRKLAND, Washington (July 6, 2022) – Housing statistics from Northwest Multiple Listing Service for June show signs of a shifting market, creating opportunities for some buyers. Compared to a year ago,…

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Declare Your Independence From High Commissions!

High Impact Real Estate Marketing & 4% Total Commissions For Today’s Home Sellers

The Cascade Team Real Estate is a company like no other because of the marketing, service and home seller savings we provide. We understand that in today’s real estate & home selling environment, we need to provide a high level of real estate service and widespread marketing of the home for sale, utilize technology to keep our home seller clients in the communication loop and provide added value to both buyers and home sellers in the real estate transaction. The effective use of technology tools allows our local real estate agents to focus more of their time on servicing our clients and finding buyers for your home, all the while providing the most comprehensive real…

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Surging Mortgage Rates Spook Home Buyers

Mortgage lending took a nosedive across the U.S. in the first quarter of 2022, according to a new report from ATTOM. 

Secured mortgages fell 18% from the fourth quarter of 2021 and were down 32% from the same time last year — the biggest year-over-year drop since 2014. This marked the fourth quarterly decrease, which the data management company said was the result of “double-digit downturns in purchase and refinance activity, even as home-equity lending rose.”

Along with the 32% decline in residential mortgages, the report found the number of new loans fell for the fourth straight quarter, meanwhile refinance lending fell another 22% and purchase mortgages were down 18%. 

Mortgage rates have climbed to their highest level since 2008, pinching…

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Housing Market Showing Signs of Correction

The housing market is entering the ‘most significant contraction in activity since 2006,’ says Freddie Mac economist.

Cracks are beginning to appear in the red-hot housing market. The pandemic's housing boom is finally running on fumes. Home sales are falling. Inventory levels are rising. And home sellers are cutting list prices at the fastest clip since 2019.

Spiraling mortgage rates on top of record-high and still-rising home prices are leading many experts to predict the real estate market is on the verge of a correction—if it isn’t already in one. They anticipate home prices will flatten, or even go down a bit, in certain markets.

This Shift is a lot bigger than a seasonal cooldown. The economic shock of higher mortgage…

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Western Washington Housing Market Begins to Balance– And That’s a Good Thing!

•          Home sellers really need to re-think their expectations.
•          The days of “multiple offers and waived inspections are behind us.”
•          Active Listings up a whopping 59% from a year ago.
•          Both pending sales (mutually accepted offers) and closed sales during May were down from a year ago.
•          Rising interest rates coupled with inflation are causing buyers that rely on conventional mortgages to reconsider the affordability.

“Home sellers really need to re-think their expectations,” suggested Mike Larson, a member of the board of directors at Northwest Multiple Listing Service (NWMLS) when commenting on statistics summarizing May activity. The new report showed a significant increase in active listings…

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The Real Estate Market “Shift” Is Here

The Real Estate Market “Shift” Is Here

Looks like America's home buying binge is winding down. There's a vibe shift visible in both the official data and in the anecdata from sellers, buyers, and brokers.

Why it matters: This is just what Jerome Powell ordered. The slowdown means the Fed's rate hikes are working — cooling demand in an overheated market.

"The buyers just stopped buying," said Shauna Pendleton, an agent with Redfin. Buyers who were flush with cash courtesy of the also formerly booming stock market have completely pulled back.

• Some listings now sit for weeks without even a showing. Some homes are sitting for 42 days without a single showing.
• Redfin agent Robin Glaysher said five people showed up to an open house last…

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