REAL ESTATE MARKET ALERT!

Real Estate Market Alert!

March 22, 2022

GOOD NEWS  - The Real Estate Market Alert!

The real estate market is not in a bubble and is not going to crash!

For sellers thinking of selling the demand is high because inventory is low.  More buyers than homes for sale. This will continue all through 2022 and into 2023.

Now the bad news for buyers and sellers depends on how you look at it.  

As of March 21, 2022 interest rose to 4.875% and that is 20% down with a conventional loan. So what does this mean for a buyer and seller? As the interest rises - it eliminates buyers buying a home in the previous price range they were approved for and will have to adjust looking for a lower price home.

The Feds will be increasing rates again and maybe 3 more times this year - for example: for a $400K price home at 5% interest Principal and interest only the mortgage payment will be $2147 a month; 6% interest rate $2398 a month and so on. With the increase of interest rates, less buyers to buy homes in the higher range and more competition.  Could mean more time on the market for sellers too.  But, with more people moving to  Pierce County and surrounding areas and out of Seattle, King County and more coming from California, because we are more affordable,  homes will sell and we may see multiple offers still.

According to Dr. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) inflation is the highest in 40 years at 7.9%. Home prices will increase on average of 5% in 2022 and 4% in 2023. New construction builders have their own problems of getting supplies because of less workers and the pandemic so they cannot build as fast as they would like.

There are over 200,000 Millennials in Pierce County alone - where will they live?  We have a shortage and we need more homes.  

The median price range in the Tacoma area is $450,000,

University Place - $627,500; Puyallup - $512,600. 

FORBEARANCE/Forclosure - the number of people in the Tacoma area in pre-forclosure or foreclosure is 2,093; in Puyallup - 1,230.  Now what most people do not know, just because they cannot make their mortgage payments does not mean they will lose their homes.  If you know someone in that situation, have them give me a call so I can assist.

When the market crashed in 2008 and 2009  I did specialize in short sales and foreclosures.  Also, as of this year 54.4% of people in Pierce County have equity in their home - which means they could sell and pay off their mortgage and have cash in their pockets and avoid foreclosure altogether.  Have them call me for more info.

I am telling you all these things so you can make decisions not to scare you but let you make an educated decision.  Some people have to sell, some will sell and some will stay where they are.  

The real estate market is still good and homes are selling. For example: 2 homes I listed in March sold the first week with 10 and 11 offers over asking price,  no inspections and get this - the buyers were willing to pay over thousands of dollars if the appraisal came in low. Give me a call so we can discuss - the call is FREE!

Debbie Ruvo, Broker

55+ Real Estate Services

Senior Real Estate Specialist

Seller Representative Specialist