I keep getting asked – How is business? What is going on?  My  point of view is – The Market is the Market, I need to be able to bend & weave on a daily basis (Thank You Coach Nate @ Greenlake Strength & Conditioning).  Seriously;  there are people having babies (needing bigger homes), people moving to new cities and moving into the Pacific Northwest, there are people dividing and selling homes for new futures, there are new couples forming everyday and wanting a place of their own.

So, business is good.  My business is about building relationships, not about closing transactions.  I am here to help you, your friends, colleagues to obtain real estate dreams.  I am busy – would I like to be busier – OF Course!

Another common topic that seems to come up is – Interest Rates – I am very optomistic that interest rates go up and then they come down – sorta like the game Chutes & Ladders.   Yes it is a pain – but think of it this way – with the interest rates higher – prices are going astronomical; think of when interest rates we low (around 3%) how many offers were we hearing go way over asking price and bidding wars – Right?  So – higher interest rates (to me) equal stable(ish) prices & future refi to lower interest rate.  Lower interest rates (to me) me prices are higher, more competition, bidding wars.  Buy NOW when the interests rate are “higher” and get the house you want – then refi later. (Yes, that mortgage might sting more, but you will have the home you desire).

Kyle Bergquist with American Pacific Mortgage in Ballard shared these data points & his view on what is going on in our market place . 

The median price of a single family residence in King County rose by $25,000.  However, prices in many other parts of Puget Sound softened slightly month over month.  At the very least, month over month home price appreciation is decelerating compared to what we were seeing earlier in the year.

·       Over the first 6 months of the year, sales of single family residences in King County were down…

o   29.73% compared to 2019

o   17.10% compared to 2020

o   40.32% compared to 2021

o   29.55% compared to 2022

·       Pending transactions for SFR in Seattle ticked down to 502.  This is the lowest number since mid March.

Summary

According to Mortgage News Daily, mortgage interest rates have moved up to 7.22% as expectations for the timeline to bring inflation under control were extended this past month.  These are the highest mortgage interest rates of the year, and outside of a week or two last October and November, these are the highest rates Puget Sound Homebuyers have been subject to since 2002…when the median price of a home in Seattle was about $275,000.

Rates will start to fall as soon as economic data meaningfully points to lower inflation ahead.  So far this year the job market has been defying all odds, and continues to defy all odds as ADP reported 497,000 job creations yesterday (Thursday 7/6), and the Bureau of Labor Statistics reported job creations of 209,000 this morning (7/7).  More jobs = more money in Americans’ pockets = upward pressure on inflation = elevated mortgage interest rates.  Expect to see relatively high mortgage interest rates until the job market starts to soften a bit, or until inflation starts coming in at .1 or .2% month over month (which likely won’t happen until the job market softens, but Hey!  One can hope). 

Mark Your Calendar Wednesday August 9th 6:30-8:30 I will be hosting my 2nd Real Estate Readiness Workshop!

Enjoy your weekend – If anyone wants to meet up on Greenlake and go paddleboarding, floating on the lake – reach out – I am always looking for a pal to hang out with!

With Gratitude,

Your Realtor Advisor for Life

Theresa