Will Prices Go Down Further?

The million dollar question! My take is that the Seattle area is not just one market. There’s the condo market, the first-time buyer/move-up market (generally under $700k) and the high-end market. The condo and high end markets are definitely still in favor of the buyer. I encourage my buyers’ in those price points to make a more aggressive offer, especially if the listing has been on the market over 60 days.

However, for the homes under $700k or so, buyers need to be prepared for some competition. With the advent of Spring, more and more homebuyers are out and about and ready to make offers. In turn, sellers are pricing their properties competitively and to market. It has not been uncommon to see homes in Bryant, Hawthorne Hills, Queen Anne, Ballard and similar neighborhoods see an offer the first week on market. It’s also not uncommon to see multiple offers either.

Here are some other reasons why Washington is showing signs of recovery:
1. Washington has an extremely strong economy: unemployment is under 5% and, according to the Washington State Office of Financial Management, we are projected to add another 2 million residents in the next 12 years.

2. Wasington has few subprime loans in danger of foreclosure so, contrary to what is happening in some states, we have significantly fewer “distress sales” or foreclosures.

3. The historic low mortgage rates are turning the market around. If you are renting, you are not alone. There are thousands of people just like you who want to buy a home and are just waiting to see what the market is going to do. As these people enter the market, supply will go down and the market will heat up (and already is).

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