by Rebecca Bingham
Hello, dears and queers!
This month is a market update! Year-end is on many of our minds, so I'll get right into it.
TL;DR:
Buyers: Get your affairs (and lender) in order this month to be ready to look at a wide variety of more affordable housing options, loan products, and interest rates in Jan/Feb/March. If the house is an 8 or above on your 1–10 scale, put in an offer sooner rather than later. If you need help “getting ready to get ready,” your very first step is connecting with a loan officer. If you want to know more about that or how to interview them to find one who meets your needs and who you like and trust, message me!
Sellers: Bring the house as turnkey as possible to be ready for a spring sale, and seriously consider your agent's suggested pricing strategy. You are paying agents to help you sell your property for the most value, not just list it and let it sit unsold. Help us help you.
The full story:
2022 was NUTS for the housing market. The market hit its peak in April, with multiple-offer situations, offers for way over the listing price, and waiving of contingencies and inspections. The Seattle market has been one of the swiftest-changing markets nationwide, and that was proven this year—month after month. As inflation flew upward, the market turned midyear in response to rising interest rates to control it. Interest rates in April were around 3.25% in contrast to November's at around 7%. The summer proved a rough lesson in patience for sellers who thought they could still get April offers. Days on the market are now at 21 days for Nov 2022, when Nov 2021 was 7 days, and April 2022 was 5 days.
Here's who and what is selling: people who *need* to move for work, family, or other reason with houses that are priced correctly. This is where a skilled agent can help make all the difference in helping you price aggressively if you need to move soon, which can net you more money at the closing table. There are still multiple offers on homes when the price is right for the location and the house is in turnkey condition. If you're expecting to move in early 2023, your best bet is to do the improvement projects now (especially because contractors are more available than they have been all year), or it's going to come out of the closing price. Another great strategy is to have it pre-inspected, take care of the big stuff, and figure out what you are and are not willing to take care of for the little things. It can save you thousands of dollars when it's time to close.
The first quarter of 2023 is expected to be banging, per the market watchers. We expect it to become even more of a buyer's market as people who got burned in March/April/May can think more carefully about their offer, with the houses having more days on the market. There are also many more open houses to preview to get an idea of what is offered—both in a price range and in a particular area.
Season's tidings! I'm looking forward to welcoming back the light! Contact me if you have any real estate needs, questions, or referrals, and send me any home-related questions for next month’s column via DM on Fetlife or Facebook. (I’ll keep it confidential, of course!)