Seattle homebuyers are facing record-high home prices and fierce competition. Yet, the latest listing data show some wiggle room on the market: total active listings in King County rose for the second month in a row in May, up 36 percent year-over-year.
Mike Grady, president of Coldwell Banker Bain, says that Seattle still needs five months of inventory to balance its market, so competition is expected to remain high. “The job market in Seattle continues to push higher demand for homes than what we have in inventory being formed,” Grady said. “There’s a little relief, meaning buyers don’t have to write an offer within the first hour. Now they have maybe a day,” The Seattle Times reports.
Among the many factors working against those looking to purchase a home in the current environment, buyers will also have to contend with rising interest rates, which will continue to influence the market for the rest of the year, said George Moorhead, designated broker at Bentley Properties. “As predicted, the Feds raised rates,” he said. “Now that interest rates are on the rise, that means buying power is less.”