It seems like we have been hearing about the hot Seattle housing market since just about the beginning of the Pandemic. We were seeing record low inventory and our homes were spending less and less time on the market. Things are always shifting in the world of real estate, and there are many factors that can affect the housing market. Let us break it down for you.
In the early days of the COVID-19 pandemic, the Seattle area was experiencing a crazy drop in inventory. While inventory has steadily risen since then, we have seen a crazy jump just this last year. In June of 2022, the number of active listings nearly quadrupled in comparison to June of 2021.
Pending sales are down, meaning that houses are staying in the market for a little longer. If you are buying, you won’t see as many bidding wars. In June of 2022, pending sales went down about 30% compared to last year. Sales are still happening, they are just happening at a bit of a slower rate.
According to NBC news, interest rates are up, which will give buyers “considerably less purchasing power” in this market. So while inventory may be up, the ride in interest rates may be holding some buyers back and causing the homes to sit a bit longer on the market than we have seen in the past two years. The current interest rate for Washington State is 5.94% for a 30-year fixed mortgage.
If there is one thing that we know to be true about the Seattle Housing market, its that it is resilient. Through ups and downs, high and low inventory, and ever-changing interest rates, Seattle has remained one of the hottest housing markets in the country.
Tell us about your experience buying or selling in this crazy market!