April Market Update

Interest rates are rising. Most experts believe, and I agree, that higher interest rates will cool today’s torrid housing market. Buyers will have less purchasing power thereby reducing demand. This is balanced against more than a decade of building fewer homes than was required to meet demand, so inventory remains tight.

A new report out from the Northwest MLS (NWMLS) shows a 7.4% year-over-year drop in pending sales. Many brokers suggest this decline is a reflection of limited supply, and not yet a reflection of reduced demand. In March, there were 10,059 pending sales, down just a bit year over year, but an increase of 31% from February.

Home prices are up dramatically compared to 2021 across the region, some as high as Grays Harbor County with a 25% increase over last year. However, some of that pricing pressure is beginning to dissipate with more sellers making downward pricing adjustments. For now, multiple offers are still the rule.

There is seasonality to the Puget Sound real estate market, with more homes listed in spring and early summer. This is great news for buyers that have been pent up or priced out of the market. There were 11,197 new listings in March, up from 10,562 a year ago and a 41% increase versus February. It was also the highest volume of new listings during a month since September 2021.

If you are looking to sell your home, now is a great time to do that before increasing interest rates cool the market too much. If you are looking to buy a home, now is a great time to do that, too, as inventory increases and more homes are staying on the market longer.

Contact me if I can help you buy or sell a home.