December has been a really good month for Sellers. Super low inventory is the continuing theme. Two weeks ago, we had 70 homes available in NW Seattle. Today we are down to just 53. That is really, really low! This low level of inventory reminds me of the beginning of 2018, when we started the year off with 29 homes. That first quarter in 2018 home prices shot up. I am wondering if we are going to have a surge in home prices and activity the first quarter of 2022, similar to 4 years ago. We will of course keep you updated as we have for nearly two years now.
Home prices across the US are forecasted to be strong for 2022. Below is a graph from Keeping Current Matters from 6 major housing experts. The average of the forecast is 5.1 appreciation nationwide.
Interest rates will of course have an effect on the real estate market. Fed Chairman Powell announced that the Fed would start to increase the tapering of bond purchases and that rate hikes would start in order to help stem inflation. For the past few months interest rates have risen but have been stable in the 3.25%- 3.375% range for conforming and Jumbos have been under 3%. It is widely believed that the next three Fed meetings in 2022 will each see an interest rate hike. The Mortgage Bankers Association are forecasting that interest rates will be around 4% by the end of 2022. While 4% is certainly higher than we’ve been for the past year. This is still a really great rate. Check out the historical chart below. For fun, check out the interest rate for the year you bought your first home!
For those of you considering selling in 2022, we have our next Home Selling Seminar on the calendar for Thursday February 3rd at 5:30PM. To keep everyone at ease, we are planning to have it on Zoom again. Please email Sandra at sbrenner@windermere.com with the subject line “Home Selling Seminar” and we will get you signed up! We understand not everyone has the capability (or desire) to Zoom. Both Steve and I are fully vaccinated and soon to be boosted. If you or someone you know would like the information that our seminar provides, but can’t Zoom, just get in contact with us. We will figure out a time to present the information in person.
Have a fabulous holiday season! We will be back with our next Market Update the first week of January.
