DEFYING GRAVITY
2023 has been a gravity-defying year. With interest rates at their highest levels in over 20 years, one would expect a housing market crash. Instead, due to low inventory and a resilient economy, turn-key homes priced right continued to sell fast and for top dollar.
With interest rates so high you might be wondering. what were buyers thinking? As many buyers remained on the sidelines, those who did purchase a new home seemed to choose the buy now, refinance later strategy. They wanted to start enjoying their new lifestyle while gaining appreciation as well as avoid the expected higher buyer competition and pricing to come with eventually lower interest rates.
On average, in 2023 there were just 1.3 months of inventory on the market and the median closed sales price was just over $1.4M on Seattle’s Eastside. While this was down -6% from the year prior, since 2021 the median closed sales price is up +8%. So, the seller’s market continued in 2023 and we believe it will again in 2024.
A big driver for our belief is the Fed’s recent announcement about ending their rate hikes and their indication of up to three rate reductions coming in the new year. As you can imagine, this will encourage more buyers to get off the sidelines as well as prospective sellers to get their homes on the market to take advantage of higher demand.
While we have yet to find that crystal ball, and with wars and elections creating some uncertainty, we remain confident the market will heat up further and continue to favor sellers. For 2024, we’re predicting rates ~6%, home values to increase in the mid to high single digits, and significantly more ADU development and transactions to address multi-generational living, high barriers to entry, and the overall lack of single-family home inventory.
No matter the market. No matter the location. Whether you’re buying and/or selling, The Team Skally Advantage is here to ensure you win in Real Estate and to make your lifestyle dreams come true!
Happy New Year!
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 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.