Real estate in King County is in hot demand right now with low inventory and high buyer demand. As one of the fastest growing metro areas in the nation and incredibly high rents, it makes sense that people would want to buy Bellevue, WA real estate sooner rather than later. However, the lack of available housing for sale makes that hard. Additionally, The Federal Reserve just raised the rate and they plan to do so a couple more times over the course of this year. So what does that mean for buyers and sellers? Luckily there are no signs of the Bellevue, WA real estate market retreating anytime soon. However, there are a few key points to pay attention to. Check them out below.
First, let’s tackle the obvious, which is the psychology of the consumer. Buyer’s in King County are likely feeling some pressure right now to get into a home for sale in Bellevue, WA. Prices are going up monthly, inventory is low so bidding wars are up and now you have the “looming cloud” of higher interest rates. This results in a sense of urgency for the buyer. While this does impact a buyers purchasing power (also known as their spending budget), rates are still low! Someone looking to purchase real estate in Bellevue, WA can still get a fantastic rate if they buy this year. This will also drive sales which in return, generally has a positive effect on the local economy.
As a seller, you benefit from the high demand AND securing a loan that is still lower compared to decades past. So when you list, as long as your Bellevue, WA real estate is clean, professionally staged and photographed and the price is on par with local market conditions, you stand to receive multiple offers and possibly over asking as we have seen happen a lot in King County recently.
Other things to note in regards to the increased mortgage rates is that higher interest rates provide lenders with an incentive to make loans, which loosens some of the tight lending standards we have seen over the course of the past few years. Higher rates usually reduce the amount of issued refinance loans. Also, it is important to realize that the recent hike was well within the expected range from industry analysts. This was predicted and is still within the low end of historically low rates.
When you mix together looser lending standards, minimal interest rate increases, strong wage and job growth and a lot of very serious buyers, the result is expected to be one of the best selling seasons the Bellevue, WA real estate market has seen in years. If you are interested in selling or buying this year, I would love to differentiate my business. With the current market conditions, it is important to use a seasoned local Bellevue, WA realtor. For more information, give me a call.