A Real Estate Market At The Crossroads



 Is it just me, or does it feel like we’re waiting for the other shoe to drop? Politics aside, the new administration has made bold moves across all levels of government to affect the change they desire. Markets love stability and predictability and this current housing market feels just downright different than anything we've felt in many years. 


You've heard me say many times, real estate is hyperlocal. What's happening in Seattle may not be happening in Gig Harbor or Spokane. And sometimes even zip codes can buck the trend and perform differently than nearby neighborhoods. 



What isn't hyperlocal is the affordability crisis across the country. And we're not just talking about housing. From food, to utilities to travel and healthcare, the cost to live has skyrocketed over the last several years, and nothing seems to be helping. Wages are not rising fast enough to keep up, and the middle class responsible for much of the real estate market's success is being squeezed.


Interest rates matter, and it doesn't mean squat that we're still in a relatively low interest rate environment around 6.40%. Home prices haven't dropped enough to make a dent, and rates have been stubbornly stable. Sure, homeowners who own their homes outright are enjoying the 4%+ bank interest rate their money market funds are generating, but that's not moving the economy.


When the housing market is moving, the whole country benefits financially. Sellers moving funds into different investments. Buyers hiring contractors and spending money at Home Depot. And appraisers, home inspectors and us Realtors get to continue being busy. It's an extraordinarily vast economic wheel that's turning far more slowly.


What I know is that we can't just drop rates 2% overnight and see what breaks in the system. The United States is a titanic economy and things just move more slowly to absorb the change.


I've been telling my sellers to just be patient, but also don't sit on your laurels either. Buyers need a reason to move and sellers have lots of leverage with the right property. Buyers have more choice today, than they've had in years. But it doesn't seem to be translating into more sales across the country. If rates can drop below 6%, we will see a flurry of activity moving into 2026. The market can only sit idle for so long.


If you're thinking of selling, you must have a market ready home, priced well, clear of clutter and reasons for buyers to consider something else. If you're buying, be strategic in your choice, don't be afraid to ask for concessions and don't overspend.


If ever I can assist you with your real estate needs, don't hesitate to reach out at (206) 643-8845 or www.luxurypnw.com


#marketknowledge, #tacomahomes, #buyingewashington, #seattlerealestate, #luxurypnw #erikmolzenrealtor, #relocatetowa #findyourdreamhome

Location: Tacoma, WA, USA

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