Seattle weekly wrap-up: rates jump to 6.28% but settle at 6.03%
Wild week! As I’m sure you’re aware, the fed raised rates by 75 basis points on Wednesday. However, as a reminder the 30-year fixed isn’t tied to the fed rate; the 30-year fixed actually peaked at 6.28% for the week on Tuesday ahead of that announcement and ended the week at 6.03%. A year ago we were at 3.17% (!!!).
In Seattle it is a tale of two markets – a select few great single-family houses are still getting multiple offers. For instance, we have a client who had to bid 18% over asking to beat out two other offers on a single-family home in Wallingford, meanwhile, we helped a buyer negotiate a large seller credit on a new townhome and we are seeing a lot of price reductions and homes missing their offer deadlines.
What should give buyers hope is that for the last three weeks we’ve seen over 400 new listings a week (that’s a lot) yet only 200-something listings are going pending a week. This means inventory is starting to build which should result in prices coming down. Though it may take some time for sellers to realize that things have changed… But with rates up, the stock market down, and companies doing layoffs, this isn’t the same market we saw at the beginning of the year. For the record – I don’t think we’ll see a 2008-style crash in Seattle real estate but more of a 2018 slow down and correction. What’s your take?
Our advice to buyers – if you aren’t looking for something unusual, be patient. And definitely consider an ARM; a jumbo 5-year ARM is priced at 4.25%. Also, be cautious about your financial situation – we heard of two buyers under contract this week who lost their jobs :(. If you want all our hot takes on the market, we’re hosting a home buying class Wednesday.
Our advice to sellers – be very realistic in your pricing and days-on-market expectations. And definitely don’t mail it in on listing prep and marketing (which we see way too many sellers do.)
Homes that caught my eye – a Ralph Anderson with a slice of waterfront in Seward Park, an AIA award winner in West Seattle, an updated Broadmoor midcentury, a 2017 architect-owner/seller in Mount Baker, a Montlake “treehouse” or build your dream home on Highland Drive on this $1.4m lot.
Big budget loft fans, it was a good week – a loft came up at 1310 e Union (super boutique modern building) and so did a loft at the Madison Lofts, or here’s a very lofty Magnolia home.
Want to escape to the islands? Don’t miss this $4.2m Shaw Island NW contemporary or an $890k waterfront cottage on Vashon.
Looking in Mount Baker for a mountain escape? Some good options this week – a mountain modern in Glacier, a log home, or this diamond in the rough.