Washington housing market freezes ahead of potential recession

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“It’s best described that we ended the year with a whimper rather than a roar,” said Matthew Gardner, Chief Economist for Windermere Real Estate, on Seattle’s Morning News.

A Redfin real estate yard sign is pictured in front of a house for sale in Seattle, Washington. Pending home sales have dropped more than 30% year-over-year across the nation, the lowest level since 2015, according to a newThe most significant declines were in Las Vegas, Phoenix, and Austin — each witnessing a drop larger than 50% on average.

The housing market fizzled out at the end of 2022 due to rising mortgage rates, worries over an upcoming recession, and record-low new listings alongside the typical late-year culprits slowing down business — extreme weather and the holidays. The silver lining is the value of homes in King, Snohomish, and Pierce counties have only dropped by a few percent , meaning, while it remains challenging to sell a property, the actual value is mostly standing pat.

“The question now is, when is it going to start?” Gardner asks. “One school of thought thinks it will start probably in the second quarter. I think it could be a bit later, maybe the third quarter of this year.”

 

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