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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The Sammamish Plateau Leads Washington State in Expected Property Tax Increase

Fueled by unprecedented gains in home values, Washington State’s red hot real estate market has led to “unprecedented” increases in home values that will drive up next year’s property tax bills, according to the King County assessor’s office.

 The Sammamish Plateau topped the list with a 52% increase from the previous year. That’s double the still eye-popping 26% increase in Federal Way. Other Eastside cities also saw staggering price increases; areas such as Redmond (43% on average), Woodinville (44%) and Kirkland (44.5%).

While not as extreme as on the Eastside, in Seattle proper, values are up 19% in Rainier Beach and 20% in Magnolia, according to the assessor’s office, which released a sample of data Thursday but is still finalizing values…

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Improving Housing Inventory, Rising Mortgage Rates May Bring Some “Normalcy” to Western Washington Market

•          The Puget Sound housing market has shifted down several levels
•          Not all homes are selling within the first week on market
•          Multiple offers will not be as commonplace as they’ve been in the last two years
•          The latest MLS report showed a mix of positive and negative numbers.
•          New listings (11,681) surpassed the number of pending sales
•          This is evidence that interest rates are having a cooling effect.

KIRKLAND, Washington (May 5, 2022) –Rising interest rates and inflation, coupled with slight improvement in inventory, may bring some normalcy to Western Washington’s frenzied housing market suggest some brokers with Northwest Multiple Listing Service.

“The Puget Sound housing…

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Are We Seeing the Beginnings of a Change in The Housing Market?

The past few years in western Washington can be referred to as the golden age of selling your home. Sellers have had unprecedented control over the market commanding prices up to hundreds of thousands of dollars over asking price. Numerous factors have contributed to this including a massive influx of people to the area, historically low inventory, prime location. However, the largest factor leading to such a competitive buyers’ market was interest rates. The lowest rates in the history of the United States occurred in 2020 with rates sitting at 2.68% (Rocket Mortgage). This led to a frenzy by buyers, all of whom were trying to lock in the lowest rate possible. Additionally, this low of a mortgage rate allowed buyers to spend more and justify…

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Housing Market Entering Uncharted Waters

Average mortgage rates are higher for all loan types today with the 30-year mortgage rate crossing above 5%.

• The latest rate on a 30-year fixed-rate mortgage is 5.17%. ⇑
• The latest rate on a 15-year fixed-rate mortgage is 4.197%. ⇑
• The latest rate on a 5/1 ARM is 3.974%. ⇑
• The latest rate on a 7/1 ARM is 4.135%. ⇑
• The latest rate on a 10/1 ARM is 4.245%. 

Fed Chair Jerome Powell is done sitting idly on the sidelines as inflation burns away Americans’ purchasing power. The plan? Draw upon the central bank's decades-old inflation playbook by increasing rates until demand pulls back, and price growth slows.

This is already presenting a test for runaway inflation's poster child: the U.S. housing market.

CoreLogic, a real…

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Q2 Update: Changing Real Estate Market and Outlook for Buyers and Sellers.

If you’re in the market for a home, take note: The 2nd quarter of 2022 may be the opening you’ve been looking for.

•          February’s improving inventory and a slowing pace of price increases may ease some of the competitive pressures.
•          Buyers in King County are jumping for joy over the nearly 40% increase in new listings.
•          King County also saw a 31% increase in pending home sales month-over-month, as well.

Multiple offer situations are the norm for today’s home buyers, but some brokers with Northwest Multiple Listing Service suggest February’s improving inventory and a slowing pace of price increases may ease some of the competitive pressures.

Commenting on the latest statistical report from Northwest MLS,…

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Seattle Area Real Estate March Madness: Ready. Set. Sell.

Download Your Home Selling Game Plan

Ready. Set. Sell.

Table of Contents 

1. Welcome to the Game: Discovering Your Why

2. Game Prep: Get Serious About the Finances

3. Pre-game: Tackle Your ''To-Do" List

4. Prepping the Field: Staging Your Home

6. Checking the Equipment: Cleaning House

7. Let the Games Begin: Negotiation Time

8. The Last Play: Inspections

9. The Final Timeout: Waiting for the Closing

10. Happy Selling

Some Seattle area suburbs have literally doubled in price over the past 12 months!

The 8 Seattle Area Suburbs With the Biggest Home Price Increases in 2022 So Far! (# 1 is going to blow your mind!)

King County had the steepest drop in active listings, shrinking nearly 59% from a year ago,…

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Buyers Get Ready: Inflation, Rising Interest Rates, and New Financing Options Bringing More Sellers Into the Market

•          February’s improving inventory and a slowing pace of price increases may ease some of the competitive pressures.
•          Buyers in King County are jumping for joy over the nearly 40% increase in new listings.
•          King County also saw a 31% increase in pending home sales month-over-month, as well.
•          Inventory still down 19.5% from twelve months ago.
•          Until inventory grows, expect a heightened focus on each new listing coming on the market.

KIRKLAND, Washington (March 7, 2022) – Multiple offer situations are the norm for today’s home buyers, but some brokers with Northwest Multiple Listing Service suggest February’s improving inventory and a slowing pace of price increases may ease some of the…

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