A Housing Apocalypse?
A Housing Apocalypse?
Interest Rates are up. The average home’s Days On Market (DOM) has doubled. The median sold price is down 8% between April &May.
Are these signs of a housing apocalypse? We think not! As with most news reports, we are inundated with negativity that often influences our feelings and sometimes our behavior. The negative news can become a self-fulfilling prophecy! But we’re not falling for it…
Yes, interest rates are up AND they are still historically low. You can and likely will refinance later and in the meantime, you’ll likely gain significant appreciation + wealth. Also, rents are up on average 18% and rent is 100% Interest!
Yes, Days on Market is now ~16 days AND yet there is still less than a month’s supply of inventory. A balanced market is considered when there is 4 months of supply so it’s still a hot market to sell. There are simply not enough homes to meet demand and there are not enough new home starts to fill the gap. So a housing “crash” is unlikely…while continued future appreciation is VERY LIKELY, albeit a bit slower than the last two record breaking years. Keep in mind that homes actually appreciated in 4 of the last 6 recessions and homes have and will continue to be great mid to long-term investments.
Yes, the median sold price is down over last month AND YET they are still capturing a net appreciation of 51% over the last 2 years!
Sometimes we have to remind ourselves that it’s nearly impossible to time the market, in other words buying at the lowest low and selling at the highest high. We subscribe to the Warren Buffet school of thought that people should capitalize on fear in the marketplace. There is considerable fear out there on both sides, making it a fine time to be a buyer and/or seller. And as both a buyer and seller all you need to know is real estate has always been the best hedge against inflation and the most reliable investment over time. It is very possible to win on both sides, especially with the right team guiding and supporting you.
We just helped clients prepare and then sell their home for more than they ever imagined and then we helped them discover and buy their dream home for much less than they expected (under list price!). We also helped a recent 1st time buyer client purchase under list price. She said, “Team Skally may be a dream team but they are also the REAL DEAL”!
Let’s talk about how we can help make your lifestyle and real estate dreams come true!
Until next time, all our best to you!
Cheers!
Matt & Christina
Matt & Christina are Team Skally, top real estate agents in the Seattle Metro with expertise in luxury homes on the Eastside including Bellevue, Newcastle, Mercer Island, Renton and Issaquah. Their client testimonials say it all - they deliver exceptional service and record-breaking results. Recognized as top agents on social media by Property Sparks, Diamond Award finalists for best client service and regularly featured in online and print publications including Newcastle Life Magazine. In addition to serving clients, Matt and Christina love family time with their two boys and Leo, the Goldendoodle, as well as volunteering in the community.