The Cascade Team Real Estate Blog

The housing market is entering the ‘most significant contraction in activity since 2006,’ says Freddie Mac economist.

Cracks are beginning to appear in the red-hot housing market. The pandemic's housing boom is finally running on fumes. Home sales are falling. Inventory levels are rising. And home sellers are cutting list prices at the fastest clip since 2019.

Spiraling mortgage rates on top of record-high and still-rising home prices are leading many experts to predict the real estate market is on the verge of a correction—if it isn’t already in one. They anticipate home prices will flatten, or even go down a bit, in certain markets.

This Shift is a lot bigger than a seasonal cooldown. The economic shock of higher mortgage rates means borrowers

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The housing market is entering the ‘most significant contraction in activity since 2006,’ says Freddie Mac economist.

Cracks are beginning to appear in the red-hot housing market. The pandemic's housing boom is finally running on fumes. Home sales are falling. Inventory levels are rising. And home sellers are cutting list prices at the fastest clip since 2019.

Spiraling mortgage rates on top of record-high and still-rising home prices are leading many experts to predict the real estate market is on the verge of a correction—if it isn’t already in one. They anticipate home prices will flatten, or even go down a bit, in certain markets.

This Shift is a lot bigger than a seasonal cooldown. The economic shock of higher mortgage

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  • Home sellers really need to re-think their expectations.
  •          The days of “multiple offers and waived inspections are behind us.”
  •          Active Listings up a whopping 59% from a year ago.
  •          Both pending sales (mutually accepted offers) and closed sales during May were down from a year ago.
  •          Rising interest rates coupled with inflation are causing buyers that rely on conventional mortgages to reconsider the affordability.

“Home sellers really need to re-think their expectations,” suggested Mike Larson, a member of the board of directors at Northwest Multiple Listing Service (NWMLS) when commenting on statistics summarizing May activity. The new report showed a significant increase in active listings

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1. What does the changing housing market mean for Sellers? 
    

This isn't 2008. Home prices haven't started falling. Looking at Western Washington: Area-wide prices for single family home sales (excluding condos) in King County also increased, climbing nearly 20% from a year ago, from $830,000 to $995,000.

And though the supply of newly built homes has increased, that's actually a small part of the overall market. Inventories of existing homes are still some of the lowest on record, as of April.

 

2. What do increasing interest rates mean for Buyers?

    

“We are starting to see signs of impact from the significant rise in mortgage rates earlier this year, such as an increase in active listings and months of inventory creeping

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Weekly Review
Newsletter - 06/06/2022

Week of May 30, 2022 in Review

The Unemployment Rate held steady in May while home price appreciation surged above 20% on an annual basis in March. Here are the most crucial headlines:

  • What the Unemployment Rate Really Shows
  • May Private Payrolls Much Lower Than Expected
  • What’s Ahead for Jobless Claims?
  • Home Prices in March 20.6% Higher Than a Year Ago

What the Unemployment Rate Really Shows

 

 

The Bureau of Labor Statistics (BLS) reported that there were 390,000 jobs created in May, which was stronger than expectations of 320,000 new jobs. However, there were negative revisions to the data for March and April, removing 22,000 jobs in those months combined, which tempered the

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What a difference a few months make.  With the rise in interest rates and inflation, we have seen homes go from selling almost before the ground is broken for the sign, to now homes are sitting on the market for days, if not weeks.  For example, according to Altos Research, one Seattle bedroom community, Sammamish, saw 37% of homes during the first week of June have a price reduction.

  •          Home sellers really need to re-think their expectations.
  •          The days of “multiple offers and waived inspections are behind us.”
  •          Active Listings up a whopping 59% from a year ago.
  •          Both pending sales (mutually accepted offers) and closed sales during May were down from a year ago.
  •          Rising interest rates coupled
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  •          Home sellers really need to re-think their expectations.
  •          The days of “multiple offers and waived inspections are behind us.”
  •          Active Listings up a whopping 59% from a year ago.
  •          Both pending sales (mutually accepted offers) and closed sales during May were down from a year ago.
  •          Rising interest rates coupled with inflation are causing buyers that rely on conventional mortgages to reconsider the affordability.

Home sellers really need to re-think their expectations,” suggested Mike Larson, a member of the board of directors at Northwest Multiple Listing Service (NWMLS) when commenting on statistics summarizing May activity. The new report showed a significant increase in active

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  •          Home sellers really need to re-think their expectations.
  •          The days of “multiple offers and waived inspections are behind us.”
  •          Active Listings up a whopping 59% from a year ago.
  •          Both pending sales (mutually accepted offers) and closed sales during May were down from a year ago.
  •          Rising interest rates coupled with inflation are causing buyers that rely on conventional mortgages to reconsider the affordability.

Home sellers really need to re-think their expectations,” suggested Mike Larson, a member of the board of directors at Northwest Multiple Listing Service (NWMLS) when commenting on statistics summarizing May activity. The new report showed a significant increase in active listings

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Have you been considering listing your home?  With inventory levels climbing and homes taking longer to sell, it's more critical than ever to have your home really shine when it hits the market.  

As part of the Ultimate Selling Experience with Greer Real Estate at The Cascade Team, Home Assist can be used for almost anything.

  • Paint touch-up
  • Carpet cleaning
  • Windows cleaning
  • Driveway pressure washing
  • Landscaping
  • ETC:
  • Big Jobs like
  • Kitchen remodel
  • New Roofs
  • Also

When you’re ready to list your home, I will work with the Home Assist coordinator team to secure any needed home renovations. Payment is deferred until home closing, or 180 days and escrow will deduct costs from net proceeds to pay for services rendered.

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Weekly Review
Newsletter - 05/31/2022

Week of May 23, 2022 in Review

Headlines showed that April brought moderating inflation and slower home sales, but that’s not the whole story. Low inventory and completion delays continued to impede home sales, and more signs of an economic slowdown are on the horizon.

Inflation Moderates in April, But Don’t Be Fooled

The Fed’s favorite measure of inflation, Personal Consumption Expenditures (PCE), showed that headline inflation rose 0.2% in April, cooler than estimates of 0.3%. This caused the year over year reading to decrease from 6.6% to 6.3%. Core PCE, which strips out volatile food and energy prices and is the Fed’s real focus, met estimates with a 0.3% rise. Year over year, Core PCE decreased from

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