Wow what a difference an interest rate and increased supply can make!
As we move through 2022 we see that increased supply and higher interest rates has slowed the demand for individual homes. There are still plenty of buyers, but now they have more homes to look at, which means multiple offers are not as common on most homes.
The difference a 2-3 point increase in the mortgage rate that we've seen over the last few months can be detrimental do a first time buyer getting into their first home.
But as we work with our mortgage lenders and work with sellers (yes you heard me right), we can utilize different strategies to help buy down the interest rate to take the sting away from a 6 percent interest rate to a buyer's monthly payment.
We're still seeing demand outside the city where more jobs, greater quality of life and less city issues can be found. Plus with continued job growth on the Eastside with Amazon, Google and Facebook all expanding there, it sends buyers even further out to the south and north to suburban areas. Lennox Scott calls this migration The Great Reshuffle.
Also, even though we continue to see sellers from the Northwest move out of state to Idaho, Arizona, Utah and Texas, we still have buyers moving to our state because of the high tech jobs and the wages they provide, and the quality of life in our state with the availability of parks, mountains, lakes and the temperate climate.
How can I help?
Experience helps.
After over 15 years helping people buy and sell, including working through
the Great Recession when home prices dropped due to bad loans and over-building
in new construction, to the reality of the market we're in now, it's still about working with you to get what you need.
With sellers I can help you get the most money for your home with the best terms.
And often times it's not always about purchase price.
John L Scott also has programs to help as we offer the Market Ready Plus+ program to help sellers prepare their home for sale with John L Scott fronting the cost of improvements as well as the Instant Purchase Plus+ program for the seller that does not want to sell their home through the traditional means but allows them to get their cash so they decide their next move.
With buyers, it's working with you to help utilize your available cash so your offers stand out in a multiple offer situation if necessary and making sure you're comfortable with every step along the way.
Also Lenders have adapted to this new normal and have different loan programs they can tailor to what you need. When I purchased my new home a couple of years ago, I bought first with less than 20 percent down, and then sold my home, but recast my loan after a couple months for less than a thousand dollars versus refinancing to add my proceeds towards my principal.
Lastly, what makes the most sense for you in regards to buying or selling is what we work with. Let's talk about what that means to you and get a plan in place!
Patti Berube is most familiar with the local real estate markets within and around the following zip code areas. See other realtors that service the same areas by clicking: 98001, 98002, 98038, 98042, 98371, 98372, 98391, 98402, 98403 & 98422
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