Despite low inventory, rising prices and wild winter weather, the Seattle area real estate market remains strong. We can anticipate some changes in 2022, however, as the economy shifts and COVID continues to impact how and where people want to live. Whether you plan to buy or sell a home in 2022 or are just curious how the market might change this year, we’ve got the latest real estate trends for you.
1. “Very good year” – J. Lennox Scott, chairman and CEO of John L. Scott Real Estate told Seattle Agent Magazine that 2022 will be “another very good year” for residential real estate in the Seattle area and surrounding communities like Kent, Covington, Auburn, Renton and Maple Valley. As the Federal Reserve increases interest rates, mortgage rates will rise, so buyers are eager to buy a home to lock in the lowest rate possible. They should be aware though that, despite rising rates, mortgage interest rates remain at historic lows.
2. Seller’s market – The Seattle real estate market has been a seller’s market for several years, and 2022 will be no different. Puget Sound is an amazing place to live, work and play, so demand exceeds supply. Seattle real estate experts estimate that there is less than a month of available housing inventory, creating a severe shortage of homes.
3. Multiple offers – Because this remains a seller’s market, and buyers are eager to find the perfect home, homes will continue to sell quickly. In fact, sellers often receive multiple offers on their homes. The most attractive offers come in before inspections are done, and buyers are using all resources at their disposal (e.g., family support, bridge loans, 401(k) loans) to make their very best offers.
4. Broader search area for buyers – As COVID continues, many organizations are allowing employees to work remotely. In markets like Seattle, this means those workers can expand the area where they search for a home. For example, if a Microsoft employee previously lived on the Eastside to be close to the company’s Redmond campus, they might broaden their search area to expand their housing options.
5. Finding replacement properties – Once home sellers sell their current homes, they are having difficulty finding replacement homes to move to. To ease the stress of selling their homes with nowhere to go, more contingent offers my on the horizon.
Have questions? Not sure if this is the right time to buy or sell? Contact a REALTOR® who can help you understand how 2022 real estate trends will impact your plans.