Party talk: 3 Questions Everyone is Asking

Whether it’s at a family gathering, a company party, or catching up with friends over the holidays, the housing market always finds its way into the conversation (or is that just around me?).

Here are the top three questions on a lot of people’s minds this season, and straightforward answers to help you feel more educated about the market.

1. “Will I even be able to find a home if I want to move?”

In short yes, more than you could a year or two ago.

The number of homes for sale has been rising over the past few years. According to data from Realtor.com, there have been more than one million homes on the market for six straight months, something that hasn’t happened since 2019 (see graph below):

Here at home, both King and Snohomish Counties have seen steady inventory growth compared to last year. Looking at Year-over-year data King County has 31.2% more homes for sale while Snohomish county is slightly higher at 33.7%. This means homes are staying on the market long enough for people to actually make an informed decision. Buyers get some breathing room with more options available and Sellers can feel confident that there will be some place for them to move to next.

If you paused your search last year because nothing checked your boxes, it may be worth taking another look. Many homeowners who held off are realizing the shelves aren’t bare anymore. With more homes on the market now, you’re not competing for the same handful of listings like you were a couple of years ago.

2. “Will I ever be able to afford a house?”

Affordability is starting to improve. Finally.

It’s no secret that the last few years have been tough for buyers, but we’ve started to see some meaningful changes:

• Mortgage rates have trending down for their peak.
• Locally price growth has flattened in many neighborhoods, especially compared to the steep jumps we saw in ’20-’21

That adds up to a monthly mortgage payment that’s hundreds of dollars lower than it would have been just a few months ago (see graph below):

Buying still isn’t easy, but the numbers are starting to improve. For a lot of people, that means buying a home is becoming a more realistic goal again.

3. “Should I wait for prices to come down?”

This is the big question and the honest answer is there is no strong data pointing to a price drop or crash in our area. Yes, the number of homes for sale has been rising, but it’s still nowhere near the level needed for prices to fall significantly in our counties. On top of that, homeowners today have a lot of equity and are in a much stronger financial position than they were back in 2008. Well priced homes, especially updated, move-in ready ones, are still selling quickly and in some areas, receiving multiple offers.

Nationally, experts forecast continued price growth, just at a slower more “normal” pace: experts surveyed by Fannie Mae (see graph below):

Locally the pattern is similar: some mico-markets are leveling off and others are still climbing, but none are showing the signs of a dramatic drop. That’s why waiting for a major price drop to get a deal isn’t a very strategic plan. History shows the same thing over and over: people who spend time in the market tend to build the most long-term wealth, not the people who try to time the market perfectly.

Housing conversations can feel loud and confusing, especially at a gathering when everyone suddenly becomes a market expert. So if you want to understand what these trends mean for your goals, your budget, and your timing let’s connect. I’m always happy to walk through your options and help you feel confident about your nest steps.