Economic Indicators & Our Summer Market

Welcome to the Summer of 2023! Let's delve into the latest economic indicators and their potential influence on the real estate market in the Puget Sound region in the coming months. Get ready to explore the data-driven landscape and gain insights into the future of this dynamic region!

Economic Overview

To gain a comprehensive understanding of our regional real estate market, let's begin by examining the latest economic indicators. According to the most recent data from the Federal Reserve Bank of St. Louis (FRED) our national GDP increased 1.1% in the last quarter beating most economist estimates. Additionally, the unemployment rate in King County dropped to historically low levels of 2.6%, which is significantly lower than the national unemployment rate of 3.4%. This reflects a robust labor market in spite of some recent layoffs.

Housing Market Trends:

The real estate market in King County has witnessed remarkable growth over the past years with some retraction in the second half of 2022 due to rising interest rates and inflation & economic concerns. As of the latest report from the Northwest Multiple Listing Service Home median prices are down 10% to 12% compared to a year ago, however we returned to month over month appreciation of prices in January, continually increasing since including a 2.9% increase in the past month.

Interest Rates and Mortgage Market

Interest rates play a crucial role in shaping the real estate market. Mortgage rates In our region are approximately 6.5%, which is about 2.5% to 3.0% higher than one year ago, significantly impacting affordability for potential buyers. However, with the recent and continuing decline of inflation and moderating economic growth, mortgage experts expect declining rates over the summer bringing much needed relief to buyers and potential motivation for sellers.

Outlook for the Next Six Months:

Looking ahead, the real estate market in King County is projected to maintain its positive momentum. The strong local economy, low unemployment rates, and factors such as population growth continue to drive demand for housing. In addition, declining interest rates will help boost demand further. However, limited housing supply remains a challenge, potentially exerting upward pressure on home prices. Efforts to increase housing inventory and promote affordable housing initiatives will be vital to address this issue.

External factors, including changes in government policies and economic fluctuations, can introduce volatility to the market, so stay tuned to our newsletters and blogs for the latest data & news. Please connect with us to best understand the market and leverage this knowledge to achieve your goals.

If you have any questions, or are thinking about buying, selling or investing in the coming months, we look forward to connecting with you – give us a call, send us a text or connect with us by email.