In recent weeks there has been a shift in the market as reported by the Seattle Times. For the first time in three years buyers are starting to see signs of hope as we are transitioning into a balanced market. This might look like bad news for sellers, but we’re seeing a normal trend in a market that was heading towards unrealistic levels of growth. Now is the perfect time for the market to begin a slight slow-down to ensure the longevity of a healthy climate.
“Many of us have grown accustomed to quick sales, multiple offers and getting peak pricing. However, it is important to remember that an environment of soaring prices and low inventory will not go on indefinitely. A time of accelerated growth is often followed by 12 months of normalization.” Said James Dainard, co-founder of Heaton Dainard.
Normalization is paramount to preventing an eventual crash. When the market is hot, as it has been, prices can hike up out of control, eventually, buyers can’t afford the market and a rapid decline can occur. Fortunately, Seattle has seen a boom in the local economy that appears to be sustainable. Even though the housing market is starting to slow, the local economy has not. From a real estate perspective, this means that people are still moving to Seattle, they still have great jobs, but they have decided that prices are starting to reach a level that is unrealistic in relation to the product.
At this point, it is up to brokers to equalize and create a balanced climate that will slow, but not stop. Going forward it is more important than ever to trust your broker to do their due diligence for you. As an investor, the days of quick sales are not necessarily over, but it’s in your best interest to consider a few changes and strategies to perpetuate a successful track.
“There are multiple factors at play that cause a market shift, one of the most impactful is the rise in interest rates. Some buyers are lowering their budgets to adjust to interest rates. Overall, this means as an investor, prepare for your properties to take a little more time to sell, and give your budget a little cushion for longer carrying costs.” – James Dainard
A normal market does not have room for any guesswork. Buyers have more options and time, which means sellers need to be putting out a product that is equivocal to the price point and value of the home. This is where a good broker makes all the difference. Stay tuned for our upcoming blog post on what your Broker should do for you.