📢 MARKET UPDATE - December 2022 🚨 (Greater Seattle Area)

[Aaron Morrow]

MARKET UPDATE - DECEMBER 2022

As volatile interest rates and inflation continues to affect housing affordability, buyers and sellers are becoming creative in their efforts to buy and sell real estate. Motivated buyers are looking to shorter term adjustable-rate loans, buy-downs, and closing cost allowances to offset the high rates. Serious home sellers are becoming more willing to negotiate in order to get their home sold.

Despite the uncertainty of the housing market going into 2023, there may be good news on the horizon. The rate of inflation declined in October to 7.7% (from 8.2% in September) and Lawrence Yun, chief economist for the National Association of REALTORS®, believes this may mean that the mortgage rates have "topped out". In fact, last week mortgage rates dipped down to 6.61%. This decline is a welcome one, but it is hard to say whether the mortgage rates will continue their decline. It is likely that while inflation remains elevated, rates will too. It is a good idea for serious buyers to lock in the lower rates as they come.

The median sales prices have increased about 3.5% in most counties since this time last year. With that said, prices have decreased about 9% since the peak prices of May. It is likely that the price increases will continue to slow while interest rates remain high. It is important for sellers to put their best foot forward, pricing ahead of the market and putting in the extra effort to ensure their home looks great.

What remains to be true is that life changes happen and people find themselves needing to buy and sell real estate regardless of the changing market.