Uncertainty Creates Fear, Fear Creates Opportunity!
Our 2025 market predictions are playing out mostly as we expected. The seasonal wave repeated the trend of previous years, with the median sold price on the Eastside rising monthly from December through March. In March, the median sold price on the Eastside was $1.71M, nearly an 11% increase from December of 2024.
Inventory is way up (86% over last year) but still remains in the seller’s advantage zone. More choices for buyers are welcome and should help hold prices to more moderate gains. The short story is that there is still a housing shortage on the Eastside. More new development and ADU/DADU expansion are needed to create more balance.
Interest rates have moderated and are coming down sightly based on softness in the economy. If a recession sets in, rates will probably fall closer to 6%. Today, we stand at 6.62%, down from 6.8% last year. If rates come down to 6%, buying power will increase by 8-10%, which could drive prices up further.
So what do we make of all of this? You almost never sell at the highest high and/or buy at the lowest low. According to Case-Shiller, home values have increased in 68 of the last 75 years. How about stocks? Well, since 1950, the average annual return has been 10%. That’s including the housing crises, dot.com bubble, Vietnam War, and so on and so on.
Now, those are pretty good batting averages! If it's time for a lifestyle change (downsize, snowbird, move to another state), what are you waiting for? And if you want to purchase a new home to enable an enhanced lifestyle, what are you waiting for? The time will never be perfect!
We saw a post the other day that was quite revealing: The average male in the U.S. lives to be 74 years old. That means you are middle-aged at 37. So, what are you waiting for to live your best life?
It seems to us the late, great Anthony Bourdain said it best: “Eat at a local restaurant tonight. Get the cream sauce. Have a cold pint at 4 o’clock in a mostly empty bar. Go somewhere you’ve never been. Listen to someone you think may have nothing in common with you. Order the steak rare. Eat an oyster. Have a Negroni. Have two. Be open to a world where you may not understand or agree with the person next to you, but have a drink with them anyway. Eat slowly. Tip your server. Check in on your friends. Check in on yourself. Enjoy the ride.”
We envisioned and then created Team Skally to make our clients' lifestyle dreams come true. It has been an absolute blast, and the best is yet to come.
Andiamo!
Matt & Christina
Matt & Christina are Team Skally, top real estate agents in the Seattle Metro with expertise in luxury homes on the Eastside including Bellevue, Newcastle, Mercer Island, Renton and Issaquah. Their client testimonials say it all - they deliver exceptional service and record-breaking results. Recognized as top agents on social media by Property Sparks, Diamond Award winners for best client service, Nextdoor’s Neighborhood Faves and regularly featured in online and print publications including Greet - Newcastle & Newport Hills Magazine. In addition to serving clients, Matt and Christina love family time with their two boys and two Goldendoodles as well as volunteering in the community.