Market Update
Residential market inventory has gone up slightly. Home buyers found the largest selection of listings last month since December. Both pending sales and closed sales reached their highest volume in months. However, inventory is still critically low and sales volumes are down 30% from last year.
Many buyers are wondering if it makes sense to buy or if they should wait for lower rates? We don’t have a crystal ball but we don’t expect rates to go down or at least not significantly. Mortgage rates in June have seen little ups and downs but they haven’t moved much. Inflation is getting under control which is great news for interest rates and we hope that means mortgage rates won’t go up but we’ll have to watch what the future holds.
Commercial Real Estate Market
There is a potential threat to the commercial real estate market. About $1.5 trillion in commercial mortgage debt is due by the end of 2025, but steeper borrowing costs, coupled with tighter credit conditions and a decline in property values brought on by remote work, have increased the risk of default of commercial properties. Even before the collapse of Silicon Valley Bank and Signature Bank in early March, the commercial real estate market was struggling with a number of challenges, including higher interest rates and waning demand for office space as more companies allow employees to continue work from home.
Interesting stats: “Home Alone”
Over a quarter (27.6%) of all U.S. occupied households were one-person households in 2020, up from just 7.7% in 1940, according to 2020 Census data. The share of people living alone increased every decade from 1940 to 2020. The largest increase happened between 1970 and 1980, when the share increased from 17.6% to 22.7%.
We’d love to hear from you
Any questions, comments, or feedback? Contact us any time.
Thank you,
Kerstin 🌷 Krisanne
Brooks & Heinze Team
at Skyline Properties, Inc.
Kerstin Brooks: 206.276.5827
Krisanne Heinze: 206.920.2541
Email: info@propertyinseattle.com
Kerstin G. Brooks, Broker 