4 Things Every Homeowner MUST Know Going Into Summer 2022

Posted by Gabe Martinez-Bodine on Thursday, April 21st, 2022 at 2:00pm

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It’s no secret that housing prices across the Seattle and Eastside markets saw record growth in 2021, which has continued well into 2022.  That being said, many homes that are in historically desirable and competitive neighborhoods are starting to see a shift in the market.  It is my belief that the market will remain strong through the summer for sellers who have priced, prepped, and marketed their property correctly.  

We are still in a strong sellers market, but it's critical that every seller understands the conditions of the market, and work with a professional that has a deep and local market knowledge.  So as sellers begin to make plans for the spring and later parts of 2022, here are 4 things you MUST be aware of when looking to sell your home:

 

  1. Interest Rates, Inflation, and Inventory are all on the rise

 

It’s essential that all sellers understand that competition for each individual listing is going to be lower than it was in 2021.  In Sammamish for example, homes averaged less than a week on the market, often going for 20-30% over the asking price.  

 

Now we’re going to see a bit of a slow down in the market cycle.  Homes in the Seattle and eastside areas saw an average of 11 days on market.  Going into the spring and summer months, with the new inventory on the market, we will be looking at 17-24 days on average to sell.  So sellers, expect your home to be on the market for 3-4 weekends prior to receiving an offer. 

 

  1. Price Appreciation could begin to slow for the rest of the year

 

CoreLogic, a real estate research company, which predicts the housing market is about to undergo some serious cooling. Between January 2022 and January 2023, CoreLogic expects U.S. home prices to rise just 3.5%. If CoreLogic is right, it would mean 2022 will go down as a below-average year for home price growth. 

 

The reason for the relatively bearish model is due to demand-side pullback from the explosion in interest rates.  During the pandemic, we saw the surge in housing prices lessened to an extent by record low interest rates allowing buyers to escalate way beyond what they could “normally” afford.  

 

  1. Pricing, and preparation are KEY

 

It's imperative that sellers do their due diligence when preparing their property to sell.  This includes but is not limited to curbside appeal, de-personalizing the space, staging/professional photos, and prepping documents for listing.  

Along with preparation, another thing sellers must be realistic about is price.  With multiple offers and bidding wars slowing down in the market, buyers are much more willing to escalate higher for a property that is turn-key and move in ready.  For homes that are not prepped, buyers will have to pour a bunch of cash into a repair budget that could otherwise be used to escalate on a nicer home.  

 

  1. It’s still a great time to sell!

 

For sellers, inventory is still critically low across the board.  At the rate at which we are going, it will take .58 months to sell out of all inventory currently listed on the NWMLS, for reference, a more “balanced” market would see 4-6 months worth of inventory. 

Inventory remains low in King County at less than two weeks worth of homes for the county.  Even as we move towards a more balanced market, sellers should still understand that Seattle and the Eastside markets are vibrant, with thousands of people every year hoping to secure a home.  

 

BOTTOM LINE while year-over-year inventory is on the rise, it’s still critically low.  Sellers who have prepped, and priced their homes for the market PROPERLY have no need to worry, as they can still rely on receiving the absolute top price.  Feel free to give me a call anytime at 425-223-0098 when you’re ready to sell your home for top dollar.  

 

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