Wednesday Market Update – Eastside Residential Market Stats as of 9/21/22:
RECAP:
Active listings and Pending sales remain fairly steady this week.
The big news over the last week is interests rates. The 30 year fixed rate is at an average of 6.47% today. With a historical perspective, this is not particularly high, but it is a rate the market has not seen since 2008.
It becomes even more significant for Buyer’s affordability when you consider that 30 year fixed rates started the year at an average of 3.29%. All this puts tremendous pressure on affordability. Every 1% change in rates, means a buyer can afford about 10% less of a home for the same payment.
As an example: $4000 monthly mortgage payment can purchase the following:
1/3/22 at 3.29% = $914,484.95 loan amount
9/21/22 at 6.47% = $634,823.53 loan amount
The change in rates since the beginning of 2022 has dropped buyers qualification amounts by 30%. It is no wonder that there has been downward pressure on prices!
Should you wait to buy a home? NO!
The median closed price on the Eastside peaked in April at $1,722,500 and is at $1,350,000 as of August, a drop of 21%. With the effective cost of financing rising 30%, Buyers have taken a 9% hit in waiting out the market! The only Buyer who has profited by waiting is the cash Buyer.
THE NUMBERS:
Active Listings reached their highest level this year on 7/27/22 at 1189. Active Listings are up from last week. 1005 vs 1006 a 0% increase. Compared to a year ago this week, listings are up 290%.
Active List Prices peaked this year in the week of 3/9/22 with the median at $2,499,500. As of this week they are at a median price of $1,750,000.
Pending Sales are up from last week. 129 vs 136 a 5% decrease. Compared to a year ago this week, pending sales are down 32%.
Pending Sales Prices peaked this year in the week of 3/30/22 with the median at $1,659,500. As of this week, they are now at a median of $1,399,000, which is up from last week where they were at $1,250,000.
Months of Inventory reached their lowest level (favoring a seller) this year in the week of 3/9/22 at 0.16 months of inventory and reached there highest level (favoring a buyer) in the week of 7/27/22 at 2.47 months of inventory
Current Months of Inventory rose this week. It was 1.71 months of inventory last week and is now 1.80 months of inventory.
(Months of Inventory Guide: 2 months or less = Seller Favored, 2-4 months = Balanced Market, 4+ months = Buyer Favored)
As always… If we can help with any questions as you contemplate your real estate moves, let us know! Tony Meier & Team – Windermere
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