Three factors buyers and sellers need to know about in our housing market.
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How is the housing market changing as we approach March? There are three factors that I'm monitoring to gain insights into what the market is doing this spring. Typically, the market grows during this season, so I’m keeping a special eye on predictive growth indicators.
The first factor is the number of new listings entering the market. In both King and Snohomish Counties, there are significantly more new listings, and they’re up about 80% from December for both January and February. However, this has not resulted in more inventory, as the new listings are also being absorbed by the demand in the market. This is a positive indicator of where the market is going.
The second factor is the number of homes for sale, which has continued to fall in King and Snohomish Counties by 10% and 15%, respectively. As a result, there is a very tight inventory, which means prices are likely to continue to rise.
However, the Federal Reserve’s interest rate recently rose to around 6.65% (the highest since November of last year), pushing against this trend. While it may bring down demand, it has not yet slowed the market.
Finally, King County has seen a small bounce back, with prices up by an average of 3% this month. While Snohomish County has been trending down recently, I think it is very likely to grow with King County as the market heats up.
It's uncertain what this year will bring for buyers and sellers, as interest rates are rising and there's still much uncertainty about the future. The truth is that it depends on individual goals and what each person is trying to accomplish. If you're a buyer, it may be best to act quickly to avoid future uncertainty. If you're a seller, now may be the time to sell to maximize profits. If you want help with this or have any questions, please call or email me. I am always willing to help!