Clarity Through Chaos
Using the Data to Guide Decisions
I think we can all agree that we have been on a bit of a wild ride over the last 12 months in the real estate market. When the Fed decided to change its trajectory on interest rates in mid-2022, it created chaos and confusion.
During times of significant change, it's natural to take a pause and wait for clarity on how things will unfold. Similar reactions were seen when the pandemic hit in early 2020, leading to a temporary halt in the market until it surged in May. I have found that gathering data – whether it’s real-time data or studying historical trends – is incredibly helpful to create clarity and empower strong decisions.
As a real estate professional, I am dedicated to analyzing data on behalf of my clients, and I'm fortunate to have the insights of Matthew Gardner, Windermere's Chief Economist, to guide my research. In this recent article, Gardner examines predictions made by industry experts earlier this year and highlights how they have now aligned with one another. The consensus is that prices are not likely to experience a downward spiral; instead, they continue to rise year-over-year. Indeed, data is a powerful tool.
To illustrate this, I have created a chart using hyper-local data from both King and Snohomish counties, reflecting the median prices over the past 18 months in relation to the rising interest rates. Though we have moved away from the peak of 2022 when rates were at 5%, we remain only slightly lower and significantly higher than the bottom when rates hit 7%. The fact that the market has sustained these higher rates even now, with rates near 7% this summer, demonstrates the market's resilience.
Would the market welcome a drop in interest rates? Absolutely! Predictions suggest that if and when this happens, buyer demand will increase, and more inventory will come to the market as sellers feel more comfortable relinquishing their homes at lower rates to pursue new opportunities. Currently, low inventory due to high interest rates is supporting price stabilization and growth, showing that the market is far from collapsing.
It's essential to understand that the market is not in a free fall; it continues to churn with stable prices. If you've been considering a move, I encourage you to take a closer look at the data. Feel free to reach out to me, and I can adjust the graph to include your local zip code or city, providing you with a more comprehensive view of your investment.
Real estate moves are most often a result of life changes. If you have found yourself questioning whether your four walls currently meet your needs, let's talk! I will assess your goals and apply the data in an understandable way to help guide the best decision for you today or down the road.
The need for food assistance has never been greater due to the end of the Supplemental Nutrition Assistance Program’s (SNAP) Emergency Allotments and soaring food prices. As a result, more and more families across America are facing hunger. Our food banks are experiencing a surge in visitors and struggling to meet the increased demand.
The good news is that this incredible network of go-givers can do something about it!
Fueled by the collective generosity that Windermere is so well known for, I’m rallying my network to come together to help us towards our goal of raising $50,000.
I would be very grateful if you considered contributing to our campaign through our donation website.
Thank you for your generosity!
