With interest rates fluctuating, an ongoing shortage of housing on the market, and area-wide high home prices, it’s challenging for would-be buyers and sellers to gauge the right time to enter the market. What key things should you do to prepare to sell your house? How do you manage your expectations to maximize your likelihood of closing on a home? Read on to find out.
Max Rombakh / Windermere
What housing availability trends do you foresee in Bellevue this year?
In my interview with Matthew Gardner, Chief Economist, (viewable on my website) he predicts resale will remain low due to homeowners holding on to their low interest rates. My team and I provide our clients more options than those available on the open market, by finding off market options. As a new construction specialist, we track all new home inventory to offer our clients more choices.
For homeowners who have the choice to sell this year or delay, what should they consider?
Timing the market is difficult, but it's always best to be on the market when buyers have fewer homes to choose from. In the high-end market, interest rates play more of a role in buyer confidence than affordability.
What should buyers be flexible on if they want to have the best chance of a successful home purchase?
If you find the right home, be flexible with the payment. With rates anticipated to decrease starting this June, buyers will have a future opportunity to refinance. In December, the Fed announced they will drop rates three times starting in June ‘24, four times in ‘25, and three times in ’26. After the announcement, the stock market reacted favorably and the 10-year treasury yield dropped by 1%.
Team Foster - Tere Foster and Moya Skillman / Compass
What housing availability trends do you foresee in Bellevue this year?
We see this year being an improvement from 2023. With rates adjusting, more homeowners will sell and we will be able to accommodate the large backlog of buyers in the marketplace. As inventory increases, so will the opportunity for builders to purchase lots for renovations or new construction.
For homeowners who have the choice to sell this year or delay, what should they consider?
Sellers should feel encouraged to come on the market in 2024. Interest rates have dropped and sellers are seeing good activity on homes. Demand still exceeds supply. Sellers should prepare homes by doing new paint, landscaping cleanup, and staging. They should ensure that presentation and pricing strategy are in line with their micro neighborhood: Sellers who come on the market too high see longer days on market and potentially a lower end sale price.
What should buyers be flexible on if they want to have the best chance of a successful home purchase?
Buyers should always look past a dated interior. Rooms can be painted. Light fixtures can be changed. Title surfaces can be replaced. Instead of the interior finishes, focus on the floor plan and location. If the floor plan and location work for your needs, it’s a home run!
