Everyone is asking themselves in this month’s Seattle Real Estate Market Update “Should I wait until interest rates go down before I buy a home in Seattle?” The quick answer here is that it boils down to what you want. When interest rates go down, there’s going to be more competition in the market. This causes home prices to go up and we also start seeing more multiple offers. If you buy a home now, you can also refinance at a lower interest rate in the future.
Seattle Real Estate Market Update – The Data for March 2024
Let’s dive into the data for March’s Seattle Real Estate Market Update. As you will notice above and below there is a wide difference between the listed prices and the solds. A big reason for this discrepancy is that there are a lot of new construction homes on the market right now. And they have what we like to call the premium prices. The sold home prices are a way better barometer of what is happening in the market.
Active Listings – Average Prices
- Single Family Homes: $1,469,158
- Townhomes: $873,466
- Condos: $785,706
Sold Homes – Average Prices
- Single Family Homes: $1,269,937
- Townhomes: $813,658
- Condos: $674,557
The Question Everyone is Asking “Should I wait until interest rates go down before I buy a home in Seattle?“
In the video above, Kim talks about where the interest rates have been her entire career. Give it a watch or continue reading.
Is it better to wait to buy a home until interest rates go down?
Kim was recently touring homes with a buyer who wanted to buy a pre-sale home. They have been having a lot of conversations about whether or not they should buy a home now or wait. Interest rates are high right now. “If I wait to buy a home, will the rates be lower and will that be better for me?” This is a really interesting conversation.
When rates go down, guess what? You’re probably going to have more competition because that’s the natural progression. Rates go down, more buyers come into the market, and there’s more competition. This causes prices to go up and you also start seeing way more multiple offers.
Interest Rates Background
Kim started her real estate career in 1999. But she didn’t get hardcore into the game until 2000.
- 2000: In 2000, rates were at 8%. This is the rate Chavi and I bought a home at.
- 2000-2008: After that, interest rates bumped around, and got to 6%.
- Great Recession: Then they came down to around the 3-5% range
- Pandemic: The rates saw a dramatic drop to 2.7-3.5%.
- Inflation Season: Now we’re back up at 7.25%.
So what does this all mean? The concern is that, yes, you will have a lower rate a couple of months or until next year. But by the time most buyers decide to buy a home the prices on those properties could be way higher. And, sure, the rates are going to be a little bit higher now. But, like we have said, nothing stays the same.
The Other Question Many Sellers Are Asking “If I’ve owned my home in Seattle for a few years, will I make any money selling it right now?“
It’s interesting because we also are having the same anxious conversations with seller clients. Home sellers are calling us and saying, “If I list my house, are there any buyers out there to buy my house?” Many sellers are asking this question right now. “If I have that low 2.875% interest rate on my house, why should I consider selling?” This is the conversation that Chavi and Kim are having every single day. If it were me, I would love to sell our home, Chez Diva. But I can’t give up that 2.875% interest rate—it’s just too sweet!
As you can see, there is anxiety on both the buyer and seller sides in this market.
That is your Seattle Real Estate Market Update for March 2024
Sellers are just as anxious as buyers are. And that’s something that people don’t think about. We think Seattle is just this hardcore seller’s market. Sellers always feel like they have the upper hand. But that’s really not true. And my sellers are calling me and saying, “If I list now, are there buyers out there willing to buy?”
The Seattle Real Estate Market Update – March 2024
Let us know if you have any questions about the Seattle real estate market update for March 2024.
We are here to help. Our team understands that this process can take a year or two. Give us a call. Our Team loves helping people develop a personalized listing plan for their homes. Feel free to contact us directly at thediva@teamedivarealestate.com or call/text 206-271-0264.
