January Real Estate Market Report

Mortgage Rates James Campbell January 25, 2024

2024 has gotten off to an incredible start! Here are a few notes that help distinguish the activity in the market so far:

Rates are in the mid-sixes without incentives but many buyers are negotiating rate buy-downs with the seller and new construction developers to make their mortgage payments lower for the first two years. Please call me to learn more about rate buy-down options.
Pent-up supply released. Listings typically hit the market on Thursday. Over the last year, it has been rare to see listings hit the triple digits. Last week, over 400 new listings hit the market. The pent-up supply surely helped buyers find their home, however, Seattle still needs more listings to offer more inventory. Call me to list!
Demand, with negotiable rates and better inventory, has soared. Last weekend open houses reported an average of more than 20 groups visiting in two hours, while some homes saw 100 people in that same period.
Return of the bidding wars. A home in North Seattle hit the market at $1.2m, receiving 80 offers. One offer went up to $1.8m.
Buyers have the opportunity to be particular. With rates as they are, buyers don't want to have to spend money on deferred maintenance if their mortgage payments will already be high so they are looking for move-in ready homes. A broker in my office mentioned that a listing very similar to hers received an offer while her listing did not. The reason: the other listing had new carpet. It's all about the details, which brings me to my next note...
Sellers, have your home well-presented and well-priced! For advice on listing, give me a call. I cover staging and many other updates. If you win, I win! So call me today so we can list and win together. Tell your friends too! Referrals are the core of my business.

And now for the Seattle market at large... Last week I attended Puget Sound Business Journal's Economic Outlook conference at the Seattle Convention Center. The PSBJ honored my hard-working, friend, Ethan Stowell, with the Executive of the Year award. Congrats Ethan! Each guest spoke about their predictions and the things they are watching. A helpful article to understand the Seattle and Bellevue market(s) is linked here.

If you do not have a PSBJ subscription, please give me a call and I'll be happy to chat about it with you.

And now for some design trends in the luxury markets from the Institute of Luxury Home Marketing. The Trend Report, published by the Coldwell Banker Global Luxury® program, curates high-net-worth consumer insights generated from a Censuswide survey, along with supporting data from the Institute for Luxury Home Marketing, Wealth-X, and other top experts to uncover the latest luxury home trends driving the market now and in the future.

What’s inside The Trend Report 2024:

Shifting Out of Neutral. The luxury housing market got a boost at the end of 2023 as sales for luxury single-family properties and attached properties increased annually. Does this signal growth for 2024?
Have-It-All Properties. Today’s luxury consumers want it all. Which property types will likely check all the boxes for selective buyers this year?
The AI Revolution. What are Generative AI’s potential implications for the future of real estate?
America, the Investment Haven. Contrary to the news headlines, affluent international buyers have not cooled on American real estate, according to the latest stats from Wealth-X, an Altrata Company, and U.K.-based Barton Consulting. Will this trend continue in 2024?
The HENRY Factor. What will HENRYs – “High Earners Not Rich Yet” – do? This is one demographic to watch in 2024.
Smart Homes 2.0 – Consumer lifestyles are shifting and generative AI is taking off. What does this mean for the smart home market over the next few years?

As always, thank you very much for trusting me as your real estate agent. Please feel free to call with any questions about the market, selling or buying your home, and of course, any referral that I may assist. It's my pleasure and you are the core of my business.