Higher Interest Rates and Record Inventory Are Shaping the Market
After a relatively stable summer, mortgage rates have begun moving higher. For much of the summer, rates ranged between 6% and 6.375%, but they started climbing in late August. Although the two-week comparison shows no change at 7.25%, rates reached 7.375% last week—about a full percentage point above summer rates. That increase can make a meaningful difference in monthly payments and affordability, potentially causing some buyers to reconsider their budgets or take more time before making a decision. We’re seeing signs of a slower pace of activity, with homes going under contract down 22% in Northwest Seattle and 36% in Southwest Snohomish County compared with the previous two weeks.
Inventory has reached record levels in both markets, giving buyers more options but also making it important to look at what is actually available. In Northwest Seattle, approximately 55% of active listings are townhomes or townhome-like properties, compared with 18% in Southwest Snohomish County. That distinction matters because the overall inventory numbers don’t tell the whole story for buyers seeking a traditional single-family home. Inventory increased about 5% in both markets over the past two weeks, while new listings rose 11% in Northwest Seattle and dipped slightly in Snohomish County. Closed sales were relatively steady in Seattle, but fell 34% in Snohomish County, where the average price per square foot also declined.
With higher borrowing costs and more homes to choose from, buyers have less reason to rush and can be more selective about price, condition and value. For sellers, increased competition means pricing realistically and presenting a home well are especially important. While the market continues to offer opportunities, sellers should be prepared for buyers to take their time and compare their options before making an offer.
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STEVE HILL
Broker | REALTOR®
CELL 206-769-9577
SANDRA BRENNER
Managing Broker | REALTOR® | MCNE | SRES | CRS®
CELL 206-271-7100
WINDERMERE REAL ESTATE / NORTHWEST
311 N 85th St
Seattle, WA 98103
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