Greater Seattle Area Real Estate Market Update October 2022

[Aaron Morrow]

MARKET UPDATE - OCTOBER 2022

The fall real estate market is in full swing and the activity we are witnessing is much closer to what is considered typical for the season.

We are seeing the market revert to normalcy, moving away from the extreme conditions brought on by the pandemic.

The market is cooling off, as homes are staying on the market longer and selling prices are normalizing.

Inventory is still increasing, being nearly double the selection of this time last year.

 While having more homes to choose from provides some relief for home buyers, this is still considered to be a "seller's market".

For the market to be "balanced" we need to see four to six months of inventory.

King and Pierce counties are sitting at just above a month and a half.

With the increase in inventory, home sellers are finding that they need to be more competitive in their pricing.

Prices in the Puget Sound area are trending down, as higher interest rates and inflation are taking a toll on home buyers' budgets.

Homes that are priced too high will likely sit on the market until their prices are reduced.

The more affordable, mid-range priced homes are seeing higher demand as buyers seek to secure a home before winter.

👉 The key take away for a buyer is that if you can handle the mortgage payment, right now is becoming a better time to buy then we have seen over the past two years of COVID-19.

👉 What is the key takeaway for sellers? Houses are still appreciating and a seller can get a lot of equity out of selling depending on how long ago they bought as long as they do not over price their home when putting it on the market.

Buyers hoping to purchase may be discouraged by increasing mortgage rates, BUT it's important to know that while rates aren't forever, equity sure can be.

Buying a home should be fun! And it can be, when you go into it armed with the information you need to make the best decision for you!