Median Homes Price continues to increase every month in 2023. The King County median home price has increased from $781,098 in January to $875,000 in April. Prices are lagging behind last year when interest rates were much lower, but, now with four months of data, there is a definite trend of increasing prices in 2023. While there is a seasonal component of increased number of transactions every spring, the 63.5% increase of the number of sales over January is higher than the typical seasonal fluctuation.
Rising interest rates are a double-edged sword. In one way the real estate market is being hurt by rising interest rates. It is putting downward pressure on sales prices because the increased interest makes the monthly loan payments more expensive for buyers unless they reduce the amount they borrow. On the other hand, the real estate market is benefitting, because homeowners who locked into a low interest rate are less likely to sell their homes unless they have had a change in their circumstance. Thus, with less homes coming on the market, inventory remains lower than it usually would be despite fewer transactions.
So Is The Real Estate Market Improving?
In summary, the Seattle real estate market, the largest city in King County, has improved this year. Last year was a record year for the first half, but slowed in the second half as rising interest rates shook up the market. However, buyers have now seemed to adjust for the interest rates, and with low inventory, multiple offers are becoming more frequent. Thus, for the right house, buyers have to be ready to move quickly. At the same time sellers have to be cautious of pricing their homes correctly, because the market is not as hot as it once was. For more details on the current real estate market, contact a local real estate broker.