This December, the Seattle housing market has presented difficulties for buyers as the market continues to favor sellers.
According to a new article published by the Northwest Multiple Listing Service (NWMLS), there are three main complications that home buyers are facing; increased interest rate hikes, a depleted inventory of homes, and rising housing market prices.
Fears over rising interest rates have created a buyer frenzy during this past November and December and according to the NWMLS buyers have lost $37,000 in buying power due to these interest rates hikes. Although rising interest rates might seem daunting, it is important to put these current rates in a historical context. According to a recent Forbes article; the 1970s saw interest rates at an average of 8.9%, in the 1980s at 12.7%, the 1990s at 8.1%, and during the 2000s at 6.3%. We are currently seeing interest rates of 4.2%, which is an increase from 3.5% before the election of Donald Trump, but also still relatively low in a historical context.
To learn more, please visit: Forbes | Stressed Over Higher Interest Rates?
Low Housing Market Inventory:
This fear of rising interest rates has ultimately led to increased buyer activity which has depleted the housing market inventory. According to the NWML, at the end of December, there were only 10,751 listings on the market which is a 15.6% decrease below year ago-levels. This reality in the Seattle housing market has created a seller focused market and made it harder for buyers as the inventory has gone down and demand has steadily increased, ultimately creating a higher level of competition between buyers.
Rising House Prices:
Seattle currently has one of the hottest housing markets and, according to the NWMLS, the housing prices has seen a continued upward trend area-wide as they have risen nearly 9.2 percent from a year ago. This steady growth in home prices has created seller focused housing market and made things difficult for prospective home buyers. However, this does not mean that it isn’t an excellent time for buyers to be active within the market. Forbes has recently named Seattle as the number four city across the nation for investment property opportunities. Forbes has predicted that within the next 3 years, the prices of the Seattle housing market will in increase 26%, which is much higher than the national average of 17%. This expected growth makes it an excellent time to find your perfect home or investment property in the city of Seattle.
To learn more, please visit: Forbes | Full List of Where to Invest in Housing in 2017
If you are currently in the market to sell a property, now is an opportune time to explore your options. I would be happy to assist you with all of your real estate needs and demonstrate how I’m able to perfectly position your property within today’s market.
If you are in the housing market as a buyer, it can be a difficult process finding the right property due to rising interest rates, low housing market inventory, and increasing home prices. As a top-producing real estate broker for over a decade, I’m able to help you successfully navigate this seller oriented market and ultimately, we can work together to ensure you find your dream home or the perfect investment property.
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To read the full Northwest Multiple Listing Service Article, please visit: NWMLS | Home buyer frustration continues due to limited selection; ongoing increases in prices