Interest Rates vs. Property Values

This has certainly been the biggest issue in real estate for the last year, or more..

The interest rates went from around 2.5% to around 7.5% on 30 year fixed mortgages, in just over a year.  Only the Government could do something so stupid!  Of course, this stalled the market.  Nationwide, in 2023 approximately one third fewer homes were sold than in 2022.  That’s huge! In Washington State, we saw prices decline as a result of the sharp increase in interest rates.  Buyers couldn’t afford as much for a house and the overwhelming sentiment was that it was a “Buyer’s Market”.  Statistically, this wasn’t true.  We had a shortage of homes, which should have caused it to be a “Seller’s Market” with price increases.  But that just didn’t happen.  Overall, house prices dropped approximately 9% in 2023.

As we enter 2024, the big question becomes….  “What’s next?”

Every article I read seems to have the same, or at least similar, predictions for 2024…..  The interest rates will come down, probably to as low as 6% on a 30 year fixed mortgage in 2024.  This trend has already begun.  We have seen rates come down for the last several weeks, by the tiniest amounts per week.  Yay! What does this mean for you?

As interest rates come down, there will be a surge in Home Buyers entering the market.  This has already begun in Washington State.  We are currently seeing new sales out-pacing new listings by nearly 2 to 1. – For every new listing coming on the market, two houses are selling.  This ratio can’t last long because there aren’t very many houses left on the market.  So, what’s next is very likely to be increasing prices and the return of bidding wars. The smart money says Buy Now!  Even though the rates aren’t great…  Buying before the surge in prices locks in the amount you pay for the house.  Afterward, as rates come down, you could refinance.

Buying a house is a competition.

The winner gets a house.

There are no points for second place.

Work with a time proven winner!

I've been helping people buy and sell homes for over 20 years now.

Call me today at 360-708-2929.

For me to do my best for you, determining your needs, wants, and resources is paramount! So too is knowing your deal-breakers.

In the real estate game, the winner gets a house, and the loser doesn’t. There are no points for 2nd place.

Knowing and using every strength, skill and tool at the right time can be the difference between winning and losing a home. Buying a home is a competition and I will help you play to win.

Doing it right doesn’t guarantee that you’ll win every offer you submit. However, it does position your offer ahead of those that didn’t come prepared.

By putting your trust in a qualified professional, you increase your odds of getting the most for your money, with the least amount of inconvenience, in the shortest time possible.

Clarifying your purpose and priorities are steps one and two. Step three is getting your pre-approval.

I’m qualified, I’m committed, and I’ll have your back through the entire process.

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Bill Sauneuf

John L. Scott Real Estate / Yelm

106 NE Plaza Dr., Suite B1 Yelm, WA 98597

Call / Text Direct at: 360-708-2929

Email: Bill@Sauneuf.com

https://www.RealEstateYelm.com

LISTING AT FAIR VALUE

As a Real Estate Agent, I always talk to sellers about listing their property at fair value.

I usually suggest a range with a $20-30K swing…

…and most sellers like the higher price point.

I tend to advise them to start at the bottom and open the door for a multiple offer situation...

…as this could set things up for final sale price above the top of the range.

Want some help figuring out a fair listing value for your home?

Call me at 360-708-2929!

Bill Sauneuf

John L. Scott Real Estate / Yelm

106 NE Plaza Dr., Suite B1 Yelm, WA 98597

Call / Text Direct at: 360-708-2929

Email: Bill@Sauneuf.com

Amit Baruch

Sales Manager & Loan Consultant - NMLS# 505319

New American Funding

Call / Text Direct at: 206-786-9999

Email: Amit.Baruch@nafinc.com

Equal Housing Opportunity