We have all seen the news and real estate headlines about the changing market. Our team is here to report that the change is here in the Pierce county real estate market! In a matter of months, the interest rates have crept up to a "normal" rate. 7.9% is the average interest rate over the last 40 years and we are still shy of this as of October 2022.

The rate on January 6th, 2022 was 3.22% and in September 6th, 2022 we were seeing a 6.29% interest rate. We took this rate jump and had our preferred lender, Lindsey Waldron with Guild Mortgage, chime in about what this change looks like in a real scenario with a 20% down conventional buyer purchasing a 500K home. The estimated monthly in January was $2,334 (including taxes, insurance, and P&I), while the same house same down payment would be $3,073 just 8 months later. Naturally, this $739 monthly difference is making buyers hesitant to put the pen to paper. And even some are no longer qualified for the same purchase amount as earlier in the year.

A housing Reversion not a recession. We will be back to a sustainable market. The COVID real estate market with low mortgage rates and lack of inventory creates a strong seller advantage and many frustrated buyers. The supply and demand levels were all off!

The strategies for our sellers in the Greater Tacoma, WA neighborhoods start with the market preparation. Buyers can be a little bit pickier now- they are paying more for your home! There has also been an increase of the available houses on the market, the rising inventory gives the buyer an opportunity to choose their favorite. Strategies like seller pre-inspections, curb appeal refreshes, professional cleaning, staging, and hand-picked handyman fixes with will make your listing shine above the competition. 

Competitive pricing is just as important as the pre-listing preparation. The 2020-2021 home prices were an anomoly. The sweet spot is picking up where we left off in 2021, that gradual increase a much more sustainable rate. Over pricing in this market is a huge mistake, your listing will sit with low showings and lack of offers. When priced a bit more conservatively it puts the seller in the position of power and creates excitement around the propery. 

Now more than ever it's important to partner with professionals-both on the buy and sell side. Your Realtor, Lender, Escrow team- it all makes the difference. There is a lot of skill and creativity needed to be successful with strategies to exceed your real estate goals in this changing market. 

Success stories are still happening: on some properties sellers are still receiving multiple offers or waived contingencies. And buyers are able to negotiate a bit more to find the balance with their financials and home buying goals. Hang in there Tacoma! 

-Regina + Madison