Market Projections

2023 Exceeded Expectations:

In the realm of Washington real estate, the market showcased resilience and outperformed predictions in 2023, leaving industry experts pleasantly surprised. In short, no housing bubble will be relevant in our market. 

Mortgage Rate Projections:

Anticipate a gradual decline in mortgage rates despite initial concerns. The Federal Reserve's commitment to curbing inflation might initially keep rates elevated, but signs of a slowing economy and inflation suggest a potential easing in 2024. Expect rates to hover around 6% by year-end.

Listing Dynamics Unveiled:

While a moderate uptick in listing activity is on the horizon for 2024, the reluctance of homeowners to part with their current favorable mortgage rates will temper this surge. Current data reveals that a significant 80% of mortgaged homeowners in Washington enjoy rates at or below 5%, influencing their inclination to sell. When rates align within 1.5% of their current terms, expect a shift in motivation.

Affordability Challenges Persist:

The upward trajectory of home prices, coupled with borrowing costs outpacing income growth, signals worsening affordability in 2024. Remedying this situation necessitates a significant shift in either home values, mortgage rates, household incomes, or a combination of these factors. First-time home buyers are expected to bear the brunt of this affordability squeeze.

Foreclosure Dynamics Unveiled:

Contrary to expectations, the end of forbearance did not unleash a flood of homes onto the market. While almost 1-in-10 homes were in forbearance at its peak, the current figure has dropped below 1%. Foreclosure starts have increased but remain below pre-pandemic levels. Although delinquency levels may rise in 2024, they are expected to align with long-term averages, posing no imminent threat to the market.