Well we’ve got Sales, Prices, and Predictions: Everything you need to know for the month of September 2022.
Home Sales: You may have heard the market was softening, and it’s finally catching up to us here in Shoreline, Washington. For the first time since December 2020, we didn’t see the 12-month rolling average price go up. In the month of August, the Median House Values stayed FLAT at $800K and that puts us up 14.3% over this time last year. We’ll have to see how much of that we can hold on to as the two battling forces: Inflation and Recession play out.
Click the link if you’d like to learn how much your home is worth right now.
There were fewer closed and pending sales in the past month, closed transactions in August were down 17%. Inventory was also down 6% and it’s still a seller’s market. Days on market are still averaging just 7 days, but over-priced homes, and homes that are not in great condition, are taking longer to sell. Summer is traditionally a slow time in the market, and we see a pick-up in Fall, so I expect these numbers to improve somewhat in the next 2-3 months.
With our A-PLUS home sales system, we help you maximize your profits when you sell, regardless of market conditions. If you’d like to learn more about how we do that, click the link below and we’ll get more information out to you.
NEXT STEPS – YOUR FREE HOME EVALUATION:
I know making a move is a big decision and I can help you get it done. My name is Emily Cressey with HomeSmart Real Estate Associates and as a real estate professional, I study home prices every day.
As the sharply rising interest rates are throwing a wrench into the gears there’s a lot of uncertainty in the market, and some homes are not selling in the first week, like they had been. It’s extremely challenging to know how much your home is worth, and make a plan to buy your next home.
Because of this, I want to make a special offer – only for those who watch this video. 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 the link below to discover your home’s true potential.
Now it’s time for… everybody’s favorite segment – Predicting the Future of the Shoreline, WA real estate market!
Yes, #3 – It’s time for Emily’s predictions for the Shoreline, Washington housing heading into the Fall 2022.
Overall, in the Seattle-Bellevue-Everett Metro area, we are seeing 28% of homes had to do a price drop before selling. While well-priced and well-presented homes are still selling quickly and for great prices, it’s important for sellers to be realistic about where they are setting their prices.
GETTING FEEDBACK FROM THE MARKET:
I’ve been talking to some agents who had listings in August with ZERO showings for several weeks. The owners had set the price too high and were not willing to listen to market feedback about where pricing needed to be. On average it takes 11 showings to find the right buyer for your house, so if you’re not getting many showings, or you’re getting negative feedback from people coming through the property, you need to be prepared to adjust your strategy, whether that means fixing up the house, adding staging, changing your marketing or adjusting your price. Owners and agents need to work together more closely now to make sure expectations are being met and steps are being taken to ensure homes will sell.
HOME PRICE AFFORDABILITY
Affordability has been dropping for buyers and is very low at this point in time because prices are up, interest rates are up, and so payments are up. Nationally, the average income earner can only afford 98.5% of the mortgage payment on the average house.
Now this data is nationwide and we know Seattle is LESS affordable than the average city, but we can take the principle here and see that for buyers rose 53% between increased prices and interest rates.and the rising interest rates that we’ve had have made it increasingly difficult for home buyers to get into the market.
Affordability figures like this are based on three things:
Wages, Interest Rates, and Prices.
So to predict what’s coming, we have to ask ourselves what we believe about those things.
- Are wages in Seattle going up or down?
- Are interest rates going up or down?
- Prices in general are going up, but housing prices, at least, are leveling off for now.
It’s still a seller’s market, but we are “coming back to normal” and we can’t rely on the red-hot market to sell any house at any price. Your agent will be working quite a bit harder to get your house sold in these conditions, and you need to work with them.
Now, we’re heading into a recession here. An inflationary recession, and that means that the prices of things will be going up, but wages won’t necessarily increase to keep up with that, and people may be feeling poorer. We may see a turn toward frugality, simple living and coupon cutting.
What can Buyer’s Do?
They’re going to be looking around for “lesser” properties that they can actually afford, and may start looking for some easier to use loan programs like a 40-year mortgage, interest-only mortgage, or Adjustable Rate Mortgage with temporarily lower monthly payments.
Historical data tells us that even in these times, people still need a place to live, but there may be less “speculative” buying and selling going on.
A lot of the buyers in the marketplace are likely those who were not able to participate in the crazy markets of the last few years, this would include many first time buyers, and down-payment assistance program buyers, like FHA and VA loan program buyers.
These buyers usually have less cash available and you may be able to nudge them along to make an offer on YOUR by offering some closing costs assistance or redecorating allowances, even if your home doesn’t show perfectly.
If you’re thinking about selling, all signs point to now as the right time to get off the fence if you’re even thinking about moving and cashing out your equity.
If you’ve got questions, we’re here to help. You can find us at HomeProAssociates.com/contact.
Otherwise, I’ll see you on the real estate housing update for Lynnwood, Washington
I’m Emily Cressey, and here at HomeSmart Real Estate – We do more.