Seattle homebuyers to face tough summer market despite 4% price drop, potential rate cuts

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Seattle News

Homebuyers,Market,Rate Cuts

The weather warm-up is usually a sign the housing market is about to heat up.

by Lee Stoll, KOMO News ReporterFILE - This June 20, 2019, file photo shows an existing home is offered for sale in Rutledge, Ga. The summer months are when most people try to make a move, but buyers will need to get creative if they want to compete.According to the National Association of Realtors, 2023 was one of the worst years for home sales in the last 10 years. This year is not getting much better.

Mortgage rates are still high and listings are low. Black said inventory is up 25% from last year, but still down about 50% from pre-pandemic levels."There’s good news and bad news for Seattle. The good news is for homebuyers that home prices are down 4% here year over year so far," Black said. According to Seattle-based Redfin, nearly 40% of homeowners surveyed said they could not afford their home if they tried to buy it today.

The median sale price of a home in the U.S. has doubled in the last 10 years. There was hope the feds would cut interest rates three times this year, starting as early as June, just as many prospective buyers start shopping around. "The feds have signaled they’re going to start rates later this year, later than expected because inflation is still rearing its ugly head," said Black.Costs to buy a home likely to stay high as Fed rate cuts get delayed with sticky inflation"I think you really need to drop the contingencies in this market because the sellers want certainty and convenience. They want to go out and make an offer as well," said Black.

 

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