Seattle Market Update
Is there a shift in the air? We are seeing some changes BUT it is too early to say there is a real change. For the last few years we have been telling you about how record low inventory mixed with high demand have fueled steady property value increases. Last month, we saw an increase in inventory! According to the Northwest Multiple Listing Service, local agents added “14,524 new listings during May, the first time that volume topped 14,000 since May 2008.” There are also fewer cash sales involving Chinese nationals as China is making it more difficult for people to take cash out of their home country.
It is still a strong sellers’ market in most of Seattle but instead of homes seeing 10 or more offers, there are now about half as many offers on each home and outside of Seattle the buyer competition has slowed, too.
For our buyers, the recent uptick in new listings hitting the market might be a slight relief. However, for our sellers, increased competition from other sellers and less demand might mean it is time to lower expectations on how fast and for how much their property will sell for. Despite these changes, prices were still trending up.
Again, we are not sure this is a new trend in the market but we have our eyes peeled for potential long-term shifts in the market.
How to Buy a Home in Seattle: A Survival Guide
In May, Mike Rosenberg who is a real estate reporter at the Seattle Times, wrote an excellent article on what buyers are currently facing in the market. Mike comprehensively writes about all the aspects that have to be in place for a buyer to be competitive aside from just offering the highest amount and buying the house as is. He also explains why it is important to work with an experienced team (real estate agent, lender and inspector, etc.) to protect you and secure the home you want in this highly competitive market. To read the article, follow this link.
What’s happening to Mortgage Rates
Mortgage rates are on the rise because of a stronger economy. According to the latest data released by Freddie Mac, the 30-year fixed-rate average climbed to 4.66 percent. It was 3.95 percent a year ago. The 15-year fixed-rate average jumped to 4.15 percent. It was 3.19 percent a year ago. Rates are still historically low. With ARMs (Adjustable-rate Mortgages), the interest rate increases or decreases at a set time, depending on what is happening with market interest rates. As a result, your monthly mortgage payments may go up or down. If you have an ARM, your monthly payments have or likely will go up.
Did you Know?
Did you know, Father’s Day was not celebrated in the US, until the 20th century. As a civic celebration in the US, it was inaugurated in the early 20th century to complement Mother’s Day by celebrating fathers and male parenting. Father’s Day this year is on June 17.
We’d love to hear from you
Any questions, comments, or feedback? Contact us any time, we’d love to hear from you … and if you are a seller, it is your market, give us a call. We’d love to provide you with a free pricing analysis on your home and offer you proven strategies on how to get the most money for your home.
Krisanne and Kerstin
Brooks & Heinze Team
at Skyline Properties, Inc.
Kerstin Brooks: 206.276.5827
Krisanne Heinze: 206.920.2541