Are you interested in knowing the real estate statistics for September? If so, you are in the right spot. We will compare the statistics from September last year with those from August. We’ll also share our forecasts for the state of the market. Therefore, whether you want to buy a home or sell your home, rising interest rates worry you in both cases. Because buyers will be unable to obtain financing from banks, as a result, read the entire report to find out what we think you should do and what the future of interest rates looks like.
If you read our previous reports, you would know that the market for September was nothing out of the ordinary. Due to the rising cost of borrowing money, buyers are delaying their home purchases. Because of this, prices are falling, but you would be mistaken to believe that they will soon return to their previous levels. In the coming year, price declines are predicted to be in the 4.5% range. Below, we’ll explore this in more detail. For the time being, let’s check out the Seattle real estate statistics for September.
Running Seven-Day Average
As its name implies, the seven-day average is a market trend indicator for the previous seven days. It provides information on recent events, serves as an excellent short-term indicator, and detects trends earlier than yearly reports.
New Listing — 1308
Back on The Market — 209
List Price Reduced — 1276
Listing Expired — 102
List price Increased — 54
Listing Sold — 1151
Contingent — 47
Listing Pending — 1457
Listing Cancelled — 315
Compared To Last Month
Now is the time to examine the real estate statistics for September and see how they differ from those for August. Sales are up, inventory is down, and prices are also down.
- Home sales increased by 1.6% on average.
- The number of listings sold was down by 1.4%.
- Under contract homes decreased by 9.2%.
- Sold price vs the original price was down by 2.2%.
Compared To Last Year
- The average number of homes for sale is up by 105.6%.
- The number of listings sold is down by 1.5%.
- The number of homes under contract was down by 16.9%.
- Sold price vs. The original price is down by 2.2%.
Despite a slight slowdown from September to October, the housing market was still strong. The beginning of a recovery in home sales is encouraging. We’ll monitor the housing market in the upcoming months to see if these trends persist.
Why Is This Happening?
As previously mentioned, there has been a 1% increase in sales prices from last month, which surprised many people. In fact, a new report from Redfin confirms this. It states that sales prices have unexpectedly reversed course over the last couple of weeks, rising by 1 percent since the start of September and defying expectations for a market where mortgage rates had only recently shot back above 6 percent.
How did this happen so suddenly? You might be wondering, and look no further than the decline of new listings coming online, down 20 per cent year over year in the four weeks ending Sept 18. There are fewer houses for sale in Seattle, WA this time, but as we can see from the 1357 new listings that have already become available, the number will gradually rise.
Remember that these statistics do not include condos and only apply to residential properties. We purposefully do this to provide readers with a more accurate average. So, don’t worry if some of the information differs slightly from what is found in the MLS. Our data also comes from the MLS, but only for residential properties.
Keep reading if you’re wondering why sellers aren’t coming to the market to buy. Well, our average interest rate this year is 4.72%. Last year it was 2.96%, and the year before, it was 3.11%. Now, notice that the interest rates have almost doubled. This is why sellers are not going to trade at this interest rate. Our predictions are that:
- They are going to rent their home and will buy a second home.
- Or they are going to renovate their home because it is cheaper.
Remember that “the feds control short-term loans such as car loans or HELOCs.” So, when we look at the ten-year treasury, we might wonder, “Why didn’t mortgage rates rise?”
A significant portion of it relates to the “bad inflationary numbers.” As a result of the widespread panic this caused in the market and the large amounts of money that were moved, when investors started pulling out of bonds, the value of the bonds fell. Mortgage rates spiked as a result, but they are now temporarily declining. But a 7% increase in interest rates is anticipated. However, we forecast it will fall to the 4.5% range by the first quarter of next year.
You might be thinking about waiting for the current high-interest rates to pass before taking action. When doing this, we advise you to move slowly. Because there will be a lot of homes for sale in the WA area , many buyers will emerge from hiding due to the falling interest rate, and there will be a lot of options for the seller.
Negotiations and flexibility will be limited compared to when you decide to purchase now. Additionally, after purchasing now, you can refinance when interest rates decline.
Ultimately, when we consider everything that is occurring. We have not been selling as much as we did last year, so our inventory is higher than it was. Redfin lists our market as one of the ten fastest slowing markets, with prices remaining stable and only a decline in sales volume. As a result, the inventory will continue to decline, and more homes will be taken off the market. Until mid-December, the market will continue its downward trend, after which it will return to its typical pattern of many sellers seeking buyers.
Last, interest rates will increase if prices continue to rise. It is better to stop and refinance once things are back to normal. Instead of competing in the future, it is preferable to find a home today.