Where Are Home Prices Headed?


Home price increases in the Puget Sound area have started to moderate. While down from the unsustainable highs of this spring, prices continue to be up compared to a year ago. So, where are home prices headed next?

The Home Price Expectation Survey checks in with over 100 national real estate experts every quarter, including Windermere Chief Economist Matthew Gardner. Here’s where they think prices will go:

Gardner predicts our local market will fare better than the nation overall.

“As I look to 2019, I believe home prices in King County will increase 7.8% over the current year.”
– Windermere Chief Economist Matthew Gardner

“The local economy will continue to grow and that will drive demand for ownership housing,” according to Gardner. “Supply will slow during the holiday season before we see a new influx of listings in the spring. With more supply, I believe that home price growth will continue to slow, but values will still increase.”

Whether you’re thinking of buying or selling our agents can provide you with market data that will help you make the best decision for your circumstances.

How Interest Rates Affect Buying Power

Whether you are thinking about buying or selling a home, interest rate trends are an important factor to consider. Mortgage interest rates have been rising and experts, including Windermere Chief Economist Matthew Gardner, predict that they will continue to increase in 2019.

Interest Rates and Buying Power

The chart below shows the impact rising interest rates would have if you planned to purchase a $675,000 home while keeping your principal and interest payments at $3,500 a month.

Every time interest rates increase by a quarter of a percent, your buying power decreases by about 3 percent.

What this means for buyers:

With prices moderating and interest rates slated to rise again, now is a good time to buy. If you’re betting on prices falling, you need to consider the strong possibility that an increase in interest rates would offset any potential price savings.

What this means for sellers:

Listing your home now means you will attract a larger buyer pool before interest rates rise.

Whether you’re thinking of buying or selling our brokers can provide you market data that will help you make the best decision for your circumstances. 

Puget Sound Business Journal Honors Windermere Agents as Tops In the Seattle-Area Luxury Market

Congratulations to our Seattle-area agents for representing a disproportionate share of clients on this year’s Puget Sound Business Journal list of Top 25 Most Expensive Home Sales. In the Seattle-Eastside luxury market, Windermere outperformed all other real estate companies, including participating in over half of the region’s most expensive sales, generating top returns for their sellers, and reaching closings at nearly double the pace of other agents. We’re proud of the expertise of our agents and look forward to seeing their diligent work continue to be recognized as they define luxury real estate.

This blog originally appeared on the Windermere Blog.

5 Dangers of Overpricing a Home

It is still a great time to be a seller, but the local real estate market has begun to soften. With significant increases in inventory, buyers now have more choices and less sense of urgency. If you are thinking about selling your home, pricing it correctly the first time is critical. Here’s why:

  1. If you overprice your home, it won’t show up in some search results.

    Buyers search for homes using the parameters they desire. Price range is one of the most critical. If you set an unrealistic price of $850,000 for your home, all the buyers searching for homes up to $825,000 will fail to see your property in their search results.

  2. An overpriced home attracts the wrong buyer.

    An overpriced home will not compare favorably with the realistically-valued homes in a buyer’s price bracket. If your home is missing the amenities, square footage or other features of homes within the price range you’ve placed it in it won’t sell.

  3. Overpriced homes linger on the market and risk becoming “stale”.

    The interest in a home is always highest when the listing first hits the market. When an overpriced home goes unsold for a long period of time buyers often wonder what is wrong with the property. When a buyer moves on from a listing they rarely come back, even if you drop the price.

  4. You run the risk of getting less for your home than if you priced it correctly the first time.

    A Zillow study showed that homes that linger on the market tend to sell for significantly less than their listing price. When a home sits on the market for an extended period of time, buyers feel they have lots of room to negotiate.

  5. The longer your home remains on the market, the more expenses you incur.

    Every month your home goes unsold you put out money for mortgage payments, utilities and other home expenses that you will never recover.

 

Setting a realistic price for your home from the start is critical. If you’re thinking of selling, our highly trained experts at Windermere Real Estate can provide you with a comprehensive pricing analysis based on current market conditions.