I’m sure you’ve all been hearing the news that mortgage interest rates are the highest they’ve been since the early 2000s, with the average 30-year fixed rate hitting 8% last week. While new mortgage applications have dropped, Buyers are still out there. Nationally, Builders and other Sellers are offering to buy-down a Buyer’s interest rate. This can be an effective strategy to entice Buyers and is significantly more cost-effective for a Seller than reducing the price. It basically solves two issues – helps the Buyer afford the monthly mortgage payment, and helps the Seller net the highest sales price for the market conditions.
Recently, I have also been seeing more articles about why now is a good time to be buying. The general thesis is what we’ve also been saying. Currently, there are fewer Buyers in the market, which means there is less competition for Buying. While we are still seeing homes sell above their list price with multiple offers, it is less than it used to be. Most weeks in NW Seattle, more homes are selling either at or below their list price. Interest rates will eventually come down again, probably not back to our recent lows, but down from the current level. Buyers can refinance their current mortgage and if they are smart, pour the savings back into paying down the loan!
So what’s been happening in our local markets? Both NW Seattle and SW Snohomish are humming along. The first three weeks in October have been slightly better in both markets in terms of homes going pending versus new listings than in September. The weekly average of new listings has been coming down in October, while Buyer activity has remained relatively stable and has actually gone up in SW Snohomish. This is somewhat different from the data points of comparing the past two weeks, to the previous two weeks, because I am comparing the weekly averages for September and October and I am only looking at Pending properties in the weekly averages, not the total number of homes going under contract.
If you are thinking of selling, please join us for our next Home Selling Seminar on Thursday, November 9th. It is a fun class where we can get all your questions answered.
And as always, if you have any additional real estate questions, feel free to call/text us any time! We’re always here to help!
STEVE HILL
Broker | REALTOR® | Luxury Advisor | Premier Director
CELL 206-769-9577
SANDRA BRENNER
Managing Broker | REALTOR® | MCNE | SRS | CRS®
CELL 206-271-7100
WINDERMERE REAL ESTATE / FN
12250 Greenwood Ave N
Seattle, WA 98133
MAIN 206-367-4720
brennerhill.com
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