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Timing the Market can put Money in your Pocket

We often see and hear news reports about the housing market and its continuing price increases. However, there is much more to the story. While prices generally increase throughout the year, those increases fluctuate throughout the year and can be very nuanced from neighborhood to neighborhood, even within the same city.

In some cases, just one month can mean a difference of hundreds of thousands of dollars. So, if you plan on selling, it may not necessarily be worth trying to “Time” the market for the end of school, especially if closing in April instead of June means an extra $200,000 or more!

Take, for example, the neighborhood of Trossachs located in Sammamish. Trossachs has just under 1,700 homes.

The Trossachs market increased 9.1% in 2024, and while that’s great news, it isn’t the full story. That’s the overall increase from January 1st, 2024, to December 31st, 2024.

However, for homes that closed in April (with a typical 30—to 45-day closing), they were on the market from late February to early March. Home sale prices in Trossachs increased by 21% to an average of $2,370,000.

If you tried timing your home’s listing for the end of June to coincide with the end of the typical school year, you only increased 1% from January and saw a decrease of 20% from April, with average closings at $1,975,000. (In fact, 3 of the 4 Trossachs homes closed in June went for UNDER asking price.)

Homes in Trossachs finished the year up 9.1%, closing at $2,150,000.

The difference between closing in April and closing in June, though only 2 months apart, was almost a $400,000 difference.

Market Updates and Charts By Neighborhood
Real Estate Market Chart
Real Estate Market Chart
Real Estate Market Chart
Real Estate Market Chart

The same sales pattern can be seen throughout the area, from neighborhoods like Klahanie, The Issaquah Highlands, Sammamish as a whole, Issaquah, Bellevue, and even Snoqualmie Ridge.

In 2025, we are starting the year with the highest inventory level in five years. This means that for sellers, the market will peak earlier this year than last. In fact, by April-July, we are expected to be above average inventory levels for the first time in nearly a decade.

Those conditions lead to the following:

  • The housing market will keep shifting in 2025.
  • The average home value rose by 9% annually.
  • Expectations are for approximately a 5% increase in prices for 2025
  • Homebuying activity should pick up after a long slump despite choppiness in mortgage rates.
  • Housing Inventory to start the year is the highest since 2020
  • Fewer Bidding Wars with normalizing housing supply
  • Interest rates are to bounce around the mid-6% range

2025 Real Estate Market Forecast

In Western Washington, the housing market is slowly becoming "unstuck," a trend that should continue as home prices rise at a "modest" pace.

We predict that home prices will rise by 4.6% in 2025, while existing-home sales will notch up by about 10% over the course of 2025.

While affordability challenges will remain, buyers should expect more homes on the market, meaning more time to consider their options and more leverage in negotiations.

Inventory going into the new year is already significantly higher than in 2024, meaning that if considering selling your home listing early in 2025 means less competition and “Best” opportunity for a higher sales price and possible bidding war.

Choppy mortgage rates

Mortgage rates could keep coming down, but don’t hold your breath for a freefall plunge. First-time homebuyers awaiting that big interest rate drop may be left very disappointed.

Mortgage rates are predicted to bounce throughout next year. Even after the first Fed rate cut of ½ a point in September of 2024 the 30-year fixed mortgage rate fell only slightly before climbing again to nearly 7% as markets adjusted their expectations for borrowing costs amid sticky inflation and a robust economy.

The new normal will be rates bouncing around 6.2% to 6.5% with refinancing sprints occurring during the dips.

A slight buyer's market

As late spring and summer approach with increased inventory levels buyers will begin to get the upper hand in some areas and prices may begin to soften.

Buyers could find more opportunities next year as more inventory in the region becomes "unstuck" and attracts homebuyers. While sellers will feel the heat of competition as buyers will have more homes to choose from.

Fewer bidding wars

The crazy bidding wars common have cooled off. Low inventory puts pressure on home prices, driving them up. We are already logging a considerable increase in available listings compared to this time last year when we approached historic lows. We predict that we will see continued increases in inventory levels throughout the area as more sellers take advantage of increased equity and feel comfortable leaving their pandemic induced 3% mortgage rates behind.

According to reports by the Federal Housing Finance Agency, house prices were up 5.7% last year. Depending on the area, we’re going to see moderate price growth (maybe 3%- 6% year over year). Some areas could even see some home price corrections; prices will go down modestly in these locations.

Please contact us if you have any questions or want a free assessment of what your home would sell for.

Professional Equity Assessment Report

PEAR is a custom evaluation of your home’s cash value. We can determine your home’s approximate equity by assessing your current mortgage and estimated selling price and deducting fees such as commissions, excise tax, and other closing costs. This report is a powerful tool for helping you make confident decisions about selling your home.

The truth is that the final numbers are more than just the sales price and the remaining mortgage balance. Other factors such as capital gains tax, broker commissions, HELOC loans, prepayment penalties, special assessments, and escrow and lender fees play a part in this final number.

We’ll help you clearly understand your bottom line. Just provide us with your address, and we’ll start on the report immediately.

We’ll help you clearly understand your bottom line. All you have to do is let us know what your address is, and we'll get started on the report right away.

What factors are included in the equity assessment of my home value?

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