It’s Been a Bit Tumultuous! Excerpts from Street Talk Financial Radio with Chris Davies 6/19/2022
Can you say tumultuous? There is no doubt that with recent rate increases, stock market volatility and whispers of a recession, we are facing a new dynamic in real estate—and yes, it’s been tumultuous!
During the pandemic, both inventory and interest rates were at an all-time low. Like most areas of the country, Seattle experienced a frenzied real estate market. As a result, the amount of equity that homeowners experienced was unparalleled. It’s important to note that although the dramatic rise in equity has slowed, homeowners are still experiencing a more moderate rise in home values.
RATES AND INVENTORY
Inventory has been increasing, but will rising rates affect inventory?
Many Sellers may choose to stay put because they are enjoying incredibly low interest rates and may prefer to “stay put.” But people will continue experience changes in their lives that require a move. Younger homebuyers, particularly those in the tech industry, may be more likely to pursue new job opportunities. Folks will continue to buy, sell and live their lives.
TIPS FOR SELLERS
If you are a seller, carefully consider your approach to listing your home. Inventory is rising and with a decreased buyer pool due to higher rates, homes need to be well-marketed and priced more aggressively.
TIPS FOR HOMEBUYERS
If you are a homebuyer, it’s time for a mental reset. The market is still competitive, but there are great opportunities for buyers. It’s more important now than ever to have your “ducks in a row” and to be prepared with the facts. Is it time to consider a buy-down or to explore other loan opportunities such as an ARM? Talk to your mortgage broker about the options that may be available to you.
For many homebuyers it’s all about the payment. Perhaps it’s a great opportunity to look for a house that’s sitting a bit and negotiate that buy down or a closing cost credit.
A SENSE OF BALANCE
Our market is feeling a bit more balanced. Many homes sell in a couple of weeks, allowing Buyers an opportunity to take a quick breath. And it’s still a great market for Sellers.
Call me anytime to discuss your real estate goals. It’s a great time to get started. (206) 261-2068