You’ve probably heard the talk of a “market correction”. This is where the supply of homes increases and prices stabilize or even trend down for a while. Corrections in any market are normal and foreseeable. What could this mean for greater Seattle?
It’s hard to tell. The prices in our area keep pushing higher and higher defying the laws of market dynamics. Why? New construction rates are still below where they need to be to level out supply and the area is experiencing rapid growth. Supply and demand remains at play here and once the slight summer saturation of inventory is gone it will be interesting to see how the fall goes.
King County numbers are still up over last. In fact, even though media has reported an uptick in listings, the county is on pace to close the same or fewer homes as 2017.
Snohomish County saw a slight decline in September for median sales price on residential homes. Down about $7,000 on average for the year. It is true that many listings are seeing price reductions. However, I call this the panic button syndrome. Sellers are so accustomed to seeing homes go under contract within the first few days they panic when their home sits for 2 weeks. As the summer inventory slowly gets absorbed the fall market will bring about even more changes.
Rates are set to increase in December so now is a great time to list or buy a new home.