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Hey there! We’re fully into 2023 and it’s exciting to see what the Seattle real estate market has in store for us. I’m sure you’re as curious as I am about what this new year will bring.
I’m getting tons of questions about things like rising interest rates, the (soul-crushingly expensive) affordability of Seattle homes, and opportunities in the market.
While we can’t be sure how things will unfold, I’d love to give you a quick snapshot of the current market and what experts predict for 2023.
Whether you’re just keeping an eye on things or ready to jump into buying or selling, here are 5 important things to know about today’s real estate market.
1. Interest Rates are Expected to Drop
High-interest rates are stretching Seattle’s affordability to the max. Monthly mortgage payments have skyrocketed because of the rising rates, but economists predict interest rates will start to drop (fingers crossed) during the course of 2023.
Chief Windermere Economist Matthew Gardner says, “I expect the Fed to start pulling back from their aggressive policy stance, and this will allow rates to begin slowly stabilizing.”
2. Real Estate in Seattle is Cooling Down…
Lately, we’ve seen the Seattle real estate market cool down a bit, which can be attributed to factors like tech layoffs (creating feelings of economic and job uncertainty) and high-interest rates. So, some people are choosing to hold off on buying or selling for now.
As we head deeper into 2023 and move closer to spring, not only can our sump pumps look forward to a breather, but experts forecast a pick-up in real estate activity too. While inventory is still low, we’re starting to see more homes come on the market. This uptick in inventory is likely to continue into the new year.
3. Seattle Real Estate Finds Balance in 2023
We’re headed into a more balanced real estate market in 2023. Matthew Gardner says, “while a buyer’s market in 2023 is unlikely, I do expect a return to a far more balanced one.”
So, if you’re in the market to buy or sell, you’ll most likely experience a slower, friendlier, and more reciprocal transaction. Buyers may feel less pressure to give things up like inspection and financing contingencies to win offers. On the other hand, sellers may still find that the high home prices and strong demand in Seattle work in their favor.
4. The Seattle Trend is To Be Different (Of Course!)
Real estate trends in Seattle and the surrounding areas vary, dramatically in some cases, from city to city. For example, Issaquah’s median sale price jumped 18.8% from October 2021 to October 2022, whereas Kirkland’s median sale price decreased 4.5% over the same period of time.
Seattle and the Greater Seattle areas have an interesting mix of statistics, and it’s helpful to be aware of the different trends when buying or selling this year. If you’re interested, I found this article from Forbes super helpful.
5. When Will Seattle’s House Prices Go Down?
When it comes to house prices, experts predict that they will decrease somewhat in 2023, but not enough to make housing significantly more affordable due to high mortgage rates.
As always, it’s worth exploring financing options and opportunities if you’re planning to buy or sell in 2023.
And that’s where I come in! I want to help you find the best opportunities and choices tailored to your specific real estate needs and wants. You can email me at drew@windermere.com or call me at 206-619-2739. I look forward to connecting with you.
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