When is the Best Time to Buy or Sell a Home in Seattle?

When is the best time to buy or sell a home in the greater Seattle and Bellevue area? I get this question a lot, and it’s a really good questions because each buyer and seller wants to know what time of year is best for them. In today’s video, we are going to look at the factors when trying to time our market. Let’s get into it.

We hope you had an excellent Thanksgiving! We’re posting this video on Black Friday, the day MILLIONS of Americans make some kind of purchase, because they are looking for a deal. The question is, what kind of cycles occur in the real estate market on an annual basis, so you too, can get a deal? Let’s examine 3 factors to consider when timing the market.

Number 1, Seasonality. Seasonality plays a large role in the activity of our market. At the start of each year, the market is typically slow. Everyone is recouping from the holidays, and let’s face it, Seattle is pretty gloomy this time of year. Usually starting in March, our market comes alive. In fact, March, April and May are the busiest months for our region’s real estate sales as the number of new listings and buyer activity peak. In the summer months, the number of transactions usually slow down and us brokers often call this the summer doldrums. People often have plans, might be on vacation and kids are out of school. Then, after Labor Day we frequently see an uptick in sales in September and October before slowing down again during holidays and winter months.  

When you look at this graph, you can see the typical rhythm of sales in our market. For buyers, the slower periods can be great times to buy since there is less competition and often more room for negotiating. Just keep in mind there is usually less inventory to choose from. For you sellers, the spring and early fall can be advantageous to list since there are more buyers in the marketplace. However, since there are also usually more homes for sale you tend to have more competition from other sellers.

The second thing to keep in mind when timing the market is the market at large. Even though there is a natural ebb and flow to real estate throughout the year, powerful market forces such as supply and demand overshadow the seasonality and can throw a curveball. These other factors include interest rates, affordability, jobs, recessions, period of hyper growth and so on. This will effect a home’s value, days on market and your specific success in the market more than the time . As an example, if you’re a seller and it’s 6 months until the busy spring market, you might think it’s a great idea to wait until that time to list your home. But, if the market drops in value over the next 6 months, did waiting until the spring market turn out to be such a good idea? Of course not. So as a buyer or seller, make sure you look at the macro landscape data as well, not just the seasonality of the greater Seattle.

 And the third thing to examine when timing the market is your specific situation and your needs. This should surpass everything else. Don’t let the time of year or market conditions hold you hostage. For instance, if you’re a buyer and you find this great property that checks all the boxes, you can afford it and you love the property, don’t necessarily wait for the “buying season”. And same thing goes for sellers. Examine what’s best for you. Your specific property might look it’s best during the winter months, when the leaves have fallen and it displays a beautiful city view.

 There is always a bit of guess work with trying to time the market. Homes sell throughout the entire year. When it comes down to it, be educated about the market. But ultimately, your personal timing is most important. Buy when are ready. Sell when you are ready.  

 If you liked the video, please tap the like and subscribe button, and if you didn’t like the video, you should still hit that like and subscribe button. And, of course, when you want to discuss your specific buying or selling goals and what might be best for you, please reach out.

Stop Purchasing Homes! | Seattle Housing Market 2022

“Stop purchasing a home in Seattle! Don’t do it.” That’s what some people are currently saying. Why?

In today’s video we are going to explore this. Let’s get right into it.  

Rates are at a 20-year high and prices are still relatively high, making affordability really tough for many buyers. But, the biggest reason why some are saying NOT to make a home purchase in Seattle, Bellevue or across our region is because prices COULD go even lower.

Just look at this housing survey by Fannie Mae (http://bit.ly/3O0s3gf). It says Consumer Confidence in Housing Hits New All-Time Low! Only 16% of Consumers report that now is a good time to buy a home.

Another warning sign of the softening market is from this recent Seattle Times article (http://bit.ly/3E4izfq) saying that Seattle’s Redfin to cut workforce by at least 13%, stop flipping homes.

These are just 2 examples of reports that communicate doom and gloom. And because of this, at first glance, it might sound like good advice not to purchase a home now. I mean, why not wait until the market corrects more before making a home purchase?

Well, While Headlines are somewhat sensationalized and paint a picture of the market cool down, it’s time to zoom out and look at the big picture. Despite the rising costs of buying a home, and the potential further downturn, the benefits of homeownership tend to outweigh the drawbacks over the long term. 
 
There are a lot of perks to homeownership.

For instance, you are in control of your environment. You are in charge and the master of your domain. Owning your home means you have Autonomy and can adjust your home to your liking.  

It also means more financial stability for most people. When you pay rent, you are lining your landlord’s pocket. Ownership means you are putting money back in your pocket and building equity with every monthly mortgage payment.

On top of the principle buydown, you also have the benefit of home appreciation. Over time, homes tend to go up in value and this increases your net worth. The past 2 years, homes experienced record appreciation. Now we are experiencing those growing pains and necessary correction.

There are other financial benefits like tax advantages and the ability to borrow against the home. Homes are also a fantastic asset to hedge against inflation.

In addition to all this, you can have a sense of community where you live. Perhaps the best thing about home ownership is that peace of mind, sense of security, and ability to create amazing memories when you own.

Also, because of where we live, I am confident that greater Seattle will continue to outperform the national average when it comes to home price appreciation. We have so much going for us here.

Please do not take what I am saying out of context. I am not saying you or anyone else needs to buy a home right now. Purchasing, may never be in your best interest. But I always get concerned when the messaging throws the baby out with the bathwater. Because it doesn’t convey the full picture as to why homeownership is worth it. And whether you buy or wait to buy should depend on YOUR needs and specific situation.

Sure, there are a lot of headwinds to making a home purchase, and you should always be cautious. But, if you find a home that checks all the boxes, is in a location you like, you can afford it, and you feel it’s a good deal, buying that home could be one of the best decisions you ever make.

If you want to stay in the know, please hit the like and subscribe button. And if you are thinking about buying or selling a home, we’d love to have hear from you and discuss your goals.  

Bidding Wars in THIS Market? | Seattle Housing Market 2022

Bidding wars in this market? Absolutely! In today’s video, we are going to talk about 2 recent examples of bidding wars. In both cases, this provided our sellers a lot more money than the list price and the sales ended up being much easier despite the declining real estate market.

Whether you are a potential buyer or seller in the greater Seattle real estate market, you’re going to want to stick around till the end, so you can apply this to your situation and stay in the know! Let’s dive right in.

We all know the market went way up in the beginning of 2022. Then, as interest rates rose dramatically, the market began to cool. We are still in this declining market.

So how did 2 recent sellers of ours get more than their asking price?

Let’s start with the story of our Kirkland, WA condo listing. Our sellers purchased this wonderful, water view condo in Kirkland in 2017. After 5 years of ownership they decided they were tired of condo living and wanted to upgrade to actual waterfront. After selling them a waterfront home in nearby Redmond, WA we worked with the sellers to get their Kirkland, WA condo ready for market. Walls were painted, all personal belongings were moved out and everything had a deep clean. Then our expert stager went in and made it look like a model home. Our professional photographer took beautiful photos and created a home tour video to showcase the best features. Here is a short clip from that marketing video. We put their condo on the market, at a competitive price of $1,475,000 and soon received 2 offers. With effective negotiating, we ended up selling it for $45,000 ABOVE the asking price. Not only that, but the winning offer was all cash, waved all contingencies and closed in only 12 days after listing the property. So not only were our sellers ecstatic about the price. They were also really grateful that it was a quick closing with very little risk to them. Needless to say, this was a major win for our clients.

Our next seller, Donna, wanted to downsize after 45 years in her Lake Forest Park home. As the original owner having lived in the home for 4 and a half decades, you could say it needed a bit of freshening up to bring it to today’s selling standards. Family and friends pitched in and helped Donna sort through all her stuff. One pile to keep, one pile for charity and the other pile to throw out. New paint, new carpet and a deep cleaning made everything look fresh. And again, our expert stager did her magic to make the home look it’s best. So did our professional photographer. We went on the market at a competitive price of $830,000. We received 3 offers in total, and negotiated a nice sales price that was $61,000 above list with the buyer waiving contingencies. This home is set to close in just a few weeks and is another example of a terrific sale, despite the declining market.  

What’s the takeaway from these 2 examples? We’ll get to that in just a second. First, I’m curious, about your thoughts and what experience you have had in today’s market. Please leave a quick comment below. Here is the interesting thing regarding these successful outcomes for our sellers (and let’s not forget the winning buyers either). This did not happen just by chance, and they have a few things in common. One, the sellers prepared their homes to look really clean and fresh. Two, effective marketing, including quality staging and expert photography grabbed buyers’ attention and got them interested. Three, the homes were priced competitively so buyers recognized the value. And four, we had an effective way to negotiate the price up because of the multiple offers, without scaring buyers off or having it backfire.

Now, let’s go back to point number 3, when I mentioned the homes were priced competitively. This does not mean the homes were priced way below market value. If that were the case, there would have been a lot more offers to choose from and investors would have gotten involved. To price a home competitively, especially in a declining market, simply means to use the latest data, numbers and market sentiment, to price the home effectively. Also, this does not mean relying on comparable home sales 3 or more months ago. Rates are much higher, and prices are lower. The market is fluid and always changing. The most meaningful data to compare home values are the pending sales (those homes that just recently went under contract).

The moral of the story is know your data, know your data, know your data and use that to your advantage.

Are there still bidding wars? Yes. Bidding wars exist in every market, including declining markets like this one. Does that mean it’s the norm like we experienced earlier this year and all last year? Absolutely not. Today, bidding wars are the exception. And while there is no guarantee, Sellers, by doing the right things, you increase your chances of a clean, quick and easy sale, that could get you above the asking price.

Also, for you buyers, when you have your ducks in a row and can quickly identify a good deal, you can act quickly in a multiple offer situation and use that to your advantage as well.  

Be sure to watch next week’s video as we go over the latest market data and provide tips for buyers and sellers so you can navigate our ever-changing market. If you haven’t already, please click the like and subscribe button. And for your specific real estate needs, please reach out as we’d be happy to help.

DON'T Buy a Home in Seattle! | Seattle Housing Market 2022

“Don’t Buy a house in Greater Seattle!”

This is the advice I hear some people say. These same people say, “The market is crashing so buyers should wait.” Just look at this article from the Seattle times (https://www.seattletimes.com/business/real-estate/seattle-is-americas-fastest-cooling-housing-market-redfin-says/)….”Seattle is America’s fastest-cooling housing market…” Does this mean buyers should not buy now? Would it be more prudent to wait? That’s what we’re answering today.

I got a call yesterday from a lovely person named Kate who is looking to make a home purchase. Like any prudent buyer, she has concerns regarding the Seattle market and market timing.

Kate’s been following the news and market and knows we are in the midst of a market correction. Let me repeat, if you didn’t know it, we are in the midst of a market correction. This can cause some people to panic. We often hear sensationalism from news outlets (because that sells), social media, and even YouTubers. The fact is, prices have dropped, they will probably continue to soften. Obviously, Kate and the rest of you buyer should wait to purchase a home. Or should you?

Not to be vague or wishy washy, but it depends.  

You should absolutely, without question, not purchase a home if you can’t afford it. I cannot stress this enough. It all starts with your financial wellbeing. You can’t be a truly happy homeowner when you are financially strapped.

You also shouldn’t purchase a home if you aren’t ready. In other words, just because your friends own homes or some dude on YouTube says investing in real estate is a smart move, doesn’t mean this lines up with your personal timing and goals.

Another reason not to purchase is when you don’t love the home. Please don’t take this out of context. I’m not saying you’ll find your luxury dream mansion with all the bells and whistles when you can barely qualify for an entry-level studio. But when considering your budget, if you still love the property and look forward to calling it home for years to come, that’s a good sign.

That brings me to the next point, which is not buying if you don’t think you’ll own the property for at least 5 years. Longer is better. Real estate doesn’t always go up in value. That’s why you want to have staying power, especially when the market isn’t in your favor. The longer you can own a property, the higher the chances that it will appreciate over time.

I can hear some of you say “But Sterling, as buyers we should wait for the market to drop more before buying.” Fine, you can do that. Maybe that’s the right decision for you. But consider these 3 thoughts.

1)    It’s not timing the market, it’s time IN the market that matters. You’ll hear financial advisors and seasoned real estate investors say this. And I agree.  

2)    You aren’t buying the entire market. You are buying a specific property, and your home. When you find a home you love, and it checks the important boxes, fulfilling your needs, AND you feel you are getting a great deal (heck, maybe even a bit under market value), that’s a good strategy to make a purchase vs. trying to time the market bottom.

3)    As mentioned, prices will probably go down more in the near future. But that doesn’t mean things will necessarily get more affordable because of the rising interest rates. Here’s a question… what has a lower monthly mortgage payment? A $1 million dollar home loan at a 6% rate or a $900,000 home loan at a 7.5% interest rate? The answer is, (even it’s a $100,000 more expensive) the $1 million dollar property, actually costs less per month because it has the lower rate. So again, unless you are buying with all cash, consider the affordability regarding your monthly mortgage payment and interest rate vs. just looking at the price alone. And, when rates do go down again, and they will, it’s just a matter of when, you can always refinance.

My advice is this. Emotions run high when buying a home. Don’t panic. Definitely, don’t rush into a home purchase. Also, don’t wait too long if buying a home would improve your quality of life and financial goals. Ultimately, the right time to buy a house depends on your specific situation. Are you financially ready and able? What are your specific goals and your personal timeline? Do you want to purchase now, or would you rather wait? Only you can answer that. 

If you’ve made it this far and you are new here, my name is Sterling and I’m a Managing Real Estate Broker in Seattle. If you want to stay in the know regarding the Greater Seattle real estate market, then do us both a favor and click that like and subscribe button. And Kate, thanks for inspiring today’s topic. See you all soon!