April stats indicate a changing market as the buyer affordability index indicates that we are at a peak.
The median sold price has flattened out to $1,722,500 from $1,700,000 in March. In January the median price was $1,515,500 so still up significantly.
The percentage of homes selling above list price as well as the amount above list price is down from last month. 80% of the homes on the Eastside sold for an average of 16% above list price. Down from 21% in March.
Months supply is on the rise and has increased from .3 months to .7 months. Some of this is due to Spring break. A balanced market is 3-6 months of inventory so we are still quite a ways off from a balanced market.
As the interest rates rise, buyer affordability is affected anddecreases. Every 1% increase in the rate reduced buyer affordability by 10%. The interest rates have risen by 2% in the last 2 months.
Sellers should be mindful of changing tides and adjust expectations. We advise our sellers to price their homes at a fair market price that they are willing to accept should they only get one offer.
We don’t believe that prices will go down due to still verylimited supply on the Eastside. We currently have 474 homes on the market, which is up from 253 in March. The ten year average for active homes is 974 properties.
Predicting the market is impossible and history supports that time will take care of any market adjustments. As with any market, buyers should choose a good home in a good location and plan on living in the home for at least 6 years. Buyers may be afforded an opportunity they haven’t had in many years and that is options with less competition.
I have been selling on the Eastside for more than 18 years and believe that these market trends won’t continue for long. Like in 2018 when the stock market crashed 1000 points we saw a slow down that lasted 6-8 months. This is a much needed market adjustment to balance the market.