Is the Homebuying Sky Really Falling?

In the months of July and August, the Seattle area real estate market has seen a near screeching halt in buyer activity.  Buyers are tired of the extremely competitive market they’ve been fighting during the pandemic, interest rates have risen, and everyone wants to be out in the sunshine that finally decided to show up in the PNW.   The market is very unpredictable, no wonder you’re confused.  Even trained realtors who are living and breathing the market every day are unsure of what will happen with each listing.  But it’s not all bad….

If the pandemic taught me anything, it’s that I should continue to live MY life even if that looks a little different than I expected.  I encourage you to do the same.  Here are a few ideas to help settle your nerves and push away all the home buying opinions to consider what is best for YOU!

• Inflation over time is going to happen. Purchasing a home now is a hedge against that. Rents will continue to go up, locking into a mortgage will keep your payment the same.
• Even if home appreciation slows down, homes always appreciate over time. Real estate has historically been the most stable investment you can make, and it still holds true.
• Interest rates really aren’t that high. Yep, I said it, never have we seen interest rates as low as we did through the pandemic, but now were just getting back to normal. Ask your parents or grandparents and you’ll hear they purchased homes at 10-15% interest, and those homes are probably paid off now.

We are in a home buying sweet spot right now.  Less buyers to compete against means you might not have to waive all your contingencies (inspections, etc.) and can purchase the same home for less today than even a few months ago.  (this, my friends, makes up for the interest rate increase by the way) It won’t stay that way for long, the pendulum is always swinging.

Purchasing my townhouse when I was fresh out of divorce, changed my financial future.  Was it scary, heck yeah, but now that same townhouse (with a $1300/month mortgage, imagine that) is an investment property for me and earning me income every month!  If you have any questions about what you may qualify for, or the market in a specific neighborhood you’re interested in, or simply how the whole thing even works, just reach out.