The first half of 2022 was defined by crazy over bidding in the housing market with steep increase in prices. The second half is subdued with buyers spooked and prices declining by over 10% in the Seattle metroplex region. Median sale price increased only 0.7% in 2022 over 2021 compared to 20% increase in 2021 over 2020. The rising interest rates lead to big drop in pending sales as mortgage payments jumped by 36%.
Outlook for 2023
With inflation on its way down (falling like a rock), I expect the housing market to get buoyant second quarter of 2023. If you are sitting on the sidelines, this is the time to get great deals before the window closes and we return to craziness in the housing market.
