Team Skally Market Minute

The Only Constant Is Change!

The only constant is change. On Tuesday, the stock market was up 1,500 points. Today? Down 1,700. In July, the Eastside median home sale price was essentially flat year over year. Fast-forward to today, and it's down 13%. A month ago, the leaves were green. Now they're brilliant shades of orange and red.

So, what are we supposed to make of all this?

Well, we bought stocks today and plan to hold on for a while. And in real estate, we just helped some very special clients and friends—first-time homebuyers—secure their very first home for 22% below the original asking price. And that original asking price wasn't even a stretch!

You know how much we appreciate the sage wisdom of Warren Buffett, whose investment philosophy we keep close at hand. One of his most famous principles says it all: "Be fearful when others are greedy, and greedy when others are fearful."

Right now, both stocks and homes are selling at discounts. We're not suggesting you throw caution to the wind, but opportunities like these deserve a closer look!

Let's talk real estate.

Trade-up buyers are having a field day. We're currently working with several clients using our Buy Now, Sell Later strategy, allowing them to take advantage of today's buying opportunities without having to sell their existing home first.

First-time buyers are winning, too. Lower interest rates combined with significantly lower purchase prices have created some compelling opportunities. In fact, purchasing the median-priced Eastside home today versus a year ago could mean a mortgage payment roughly $300 less per month, depending on your down payment and financing.

And here's something worth thinking about: when interest rates decline, more buyers typically enter the market, creating upward pressure on home prices. Historically, even a one-percentage-point drop in mortgage rates can have a meaningful impact on purchasing power and demand. That means today's buyers may have an opportunity to secure a home at a discounted price and, if rates become more favorable down the road, refinance to reduce their monthly payment.

Now THAT sounds like a win-win!

Of course, real estate isn't a short-term stock trade. It's also about building equity, enjoying your home, and living your life. Despite all the ups and downs, the longer-term trend in homeownership has historically been positive. And while the market may fluctuate from year to year, the lifestyle benefits of owning a home don't have to wait for the market to cooperate. Sounds like a pretty good deal to us!

Now, let's talk about sellers.

We know some sellers are feeling a little nervous right now, and frankly, we understand why. Competition is fierce. Roughly half of the homes currently on the market may not sell during their listing period. Why? Good old-fashioned competition!

Today's buyers have choices, and they're being selective. Your home needs to look its best, be priced realistically, and be marketed strategically. And you need a real estate team with the experience, market knowledge, and negotiating skills to put all the pieces together.

This is not the time to set yourself up for disappointment by overpricing your home or choosing a team based solely on big promises, an impressive presentation, or what sounds like a great deal. Remember, if something sounds too good to be true, it probably is.

You deserve experience, transparency, trust, and a track record of proven results. Anything less could cost you more than just time and money. It could cost you unnecessary stress and missed opportunities.

And sellers, here's something to put things in perspective: If you purchased your home in 2019, there's a good chance it's worth considerably more today—potentially 50% or more, depending on your location and property. That's a pretty remarkable return on your investment, especially when you consider all the years you've enjoyed living there!

You essentially won the homeownership lottery by getting in when you did. So, when the time is right for your next chapter, enjoy the equity you've built, order that pumpkin spice latte, and ride off into the sunset!

At the end of the day, markets will rise and fall, leaves will change colors, and life will keep moving forward. Our job is to help you navigate the changes, recognize the opportunities, and make smart decisions along the way.

Until next time, we wish you and your family the most loving, blessed, and joy-filled Thanksgiving!

And as we head into this season of gratitude, remember to love yourself and love your neighbor as yourself.

Blessings,
Matt & Christina
Team Skally at Windermere Real Estate

Matt & Christina are Team Skally, top real estate agents in the Seattle Metro with expertise in luxury homes on the Eastside including Bellevue, Newcastle, Issaquah and Kirkland. 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 Luxury Home Magazine, Puget Sound Business Journal, and Greet - Newcastle & Newport Hills Magazine. In addition to serving clients, Matt and Christina love family time with their two sons and Goldendoodle as well as volunteering in the community.