It would make sense that this headline would be legitimate. Almost weirdly the headline is based on a statistical anomaly that is not as meaningful as it would appear... That is mostly because the “peak” at least in the Seattle area where my wife and I live was a frothy over the top buying frenzy that lasted only a very short period last Spring and Summer before prices retreated sharply to where they were earlier in the year.
“What is the housing market like in Seattle today?
In December 2022, Seattle home prices were up 0.6% compared to last year, selling for a median price of $775K. On average, homes in Seattle sell after 31 days on the market compared to 13 days last year. There were 515 homes sold in December this year, down from 979 last year.”
https://www.redfin.com/city/16163/WA/Seattle/housing-market
Any information about real estate should always be considered suspect. There is not a more dishonest bunch of “professionals” than realtors. Even lawyers take a back seat. The vast majority of realtors that I have met in my lifetime have always hoped to make a bunch of money without really working for it. Their hope is always to find people who will sell for less than market value and others who will pay for more than market value a short time later.
I thought the internet and increased information availability would improve the situation but like just about everything else... the misinformation has increased far more than legitimate information. Realtors know that if they can keep the public confused that they can profit from the situation.
There are a lot of self-correcting factors at play currently. It is not that I do not believe that the Biden administration is not capable of crashing any segment of the economy. It is just that despite more than doubling interest rates from historic lows... demand remains high in many segments of the real estate market.
Today’s real estate market is incredibly confusing—even if folks are “playing it straight”.
A few factors:
—There is a two tiered real estate market—the higher end where buyers can pay cash and the lower end where the buyers have to pay (relatively) high interest rate mortgages. The cash market remains strong, while the lower end is starting to feel the pain.
—Everything is local—totally dependent on the economy and whether new employers and retirees are moving in.
—Many potential sellers with mortgages are “locked in” to their current home with interest rates that are much lower than they would get if they moved. This means a lower supply on the market which raises prices on those houses that are for sale.