The new year is here, what does it hold for the real estate market?
Throughout King County, Washington the median home sales price rose 13.5% in 2021, to $749,000. Outlying towns and suburban/rural suburbs with lower price points saw higher appreciation rates. Snohomish County saw a 23% increase, and Pierce County rose 20% last year.
We are still in a strong seller’s market with prices rising consistently over the past two years.
Click Here if you’d like to learn how much your home is worth right now.
SALES & INVENTORY:
Even though the market seems locked up with a shortage of inventory, an above-average number of home sales are taking place. They are just taking place QUICKLY due to strong buyer demand. Days on market across King, Pierce, and Snohomish Counties remain at under a week.
Interest rates are still near 3%, but as they go up, it will mean decreased affordability. Experts predict rates to be at 3.7% by the end of the year, so if you’ve been thinking about trading up and buying something new, don’t let the grass grow under your feet.
WHAT TO DO IF YOU WANT TO MOVE:
Making a move is a big decision and I can help you get it done. My name is Emily with HomeSmart Real Estate Associates and as a real estate professional, I study home prices every day.
As the market keeps going up, it’s extremely challenging to know how much your home is worth. Because of this, I want to make a special offer – only for those who read this article. I want to give you the opportunity for a custom one-on-one home evaluation. We’ll get together over the phone, on a video conference call, or in person and go through exactly what your home would be worth if you were to sell it now.
Click the link below and you’ll be taken to a page where you’ll tell me about your home and then have the opportunity to schedule a time to connect with me for a custom 1-on-1 home evaluation. Simply click here to discover your home’s true potential.
PREDICTIONS FOR THE 2022 REAL ESTATE MARKET:
Experts are predicting a couple of trends over the next 12 months:
- Ongoing Unusually High Inflation Rates will continue to force prices upwards. Goods and services will become more expensive. Real Estate will become more expensive, too, but employee salaries may not rise at the same pace as inflation, making it harder to improve living standards and buy a bigger house. Expect to see softening in the luxury home market, but strengthening in the median-and-below sector.
For more on inflation, see my separate article and video explanation here.
- Affordability Will Decline as prices continue to rise and interest rates increase, as well.
- Buyers may start shopping for more permanent residences in historically “vacation home” destinations, as remote work becomes a permanent option.
- More Homes Will Come On The Market For Sale. Many sellers have felt “stuck” like they couldn’t move because they couldn’t buy their next house. This has had a “locking up” effect on the market, and as more sellers choose to go ahead and sell anyway, we expect more homes to come on the market, when this hits critical mass, the market should UNLOCK significantly, and that should release a lot of the pressure in the market right now due to an imbalance of demand and inventory.
If you want to sell at a premium, now would be a good time to do so.