The recently released data on August 2023’s median home prices show an overall upward trend around the U.S. and in the Seattle metro area. Marking seven straight month-over-month gains since prices bottomed out nationally in January 2023, home prices are also exceeding their year-ago standings by 2.6%.
Seattle has once again posted month-to-month gains but remained one of a few West Coast cities to receive year-to-year corrections of -1.5%. However, even this percentage is an improvement as it was previously over -5%. This data suggests that Seattle has moved past the inflection point when prices bottomed out earlier this year, and home prices are now on their way back up in the Emerald City and surrounding areas.
Zooming out, high mortgage rates have continued to hamper sales volume around the country and have caused buyers and sellers alike to bide their time waiting for more favorable rates. With rates currently hovering in the range of 7 to 8%, the best time to be a buyer has likely passed. If sellers are willing to move on from a sub-3% mortgage rate to purchase at a rate closer to 8%, they are now less likely to negotiate with the market starting to swing back in their favor. This information should encourage buyers to act, as opportunities exist; the in-city condominium market is a great example. For buyers interested in starting the pre-qualification process, we recommend connecting with our preferred lender at Movement Mortgage.
These trends may lead one to believe that entering the current market as a buyer could be too high of a risk. However, we believe that for the savvy and able buyer, this market offers an opportunity. With fewer buyers on the market, those willing to find a motivated seller, and take on a higher mortgage rate to secure the right home at the right price, may prove to be winning strategy in the long run. Rather than digesting 18 to 24 months at elevated mortgage rates, especially since those rates can be refinanced when rates go down, buyers in this situation can secure a great home at a great price, thus locking in an incredibly valuable forever benefit.