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The early part of this year couldn’t have been more different. Inventory was low, buyers had to make tough choices and competitive offers, often quickly and above the listing price. As soon as a good house came on the market, brokers got their buyers in and offers were accepted within days.
In mid-April, that all came to a standstill. Many sellers had done the hard work to get their homes and properties in showcase condition over the winter and put their houses on the market. At the same time, buyers decided to sit it out, waiting for the next interest rate announcement from the Federal Reserve.
May was slow. Incredibly slow. For 45 days, The available inventory of homes in our neighborhoods grew during that time, to about 1.4 months. That’s nearly double what we had in the first quarter of 2024. Analysts peg a neutral market at four to six months of inventory. But the buyers were silent.
Then the Fed announced in early June that rates would stay at current levels for the seventh time in a row. As soon as that announcement was made, the phones started to ring again. Buyers resolved that this is just how life is going to be if they want to buy a home. In the week after, my team had seven homes under contract. I can’t predict whether this will turn into a flood of activity or taper off to a trickle. There’s no predicting how buyers will behave.
What we know now
What we know now is there are more homes on the market. In King County as a whole, there are about 11,000 active listings. We haven’t seen that many since before the pandemic. If you’re a buyer who wants to (or has to) move, you’ve got more choice than you’ve had in years.
You’ll have better prices and negotiating terms as well. My team just brought a turnkey house on the market that has been spruced up head to toe and has great views for $1.8 million. Based on the data, if the house had been listed any time between January and April, we would’ve had several great offers without any contingencies within days. It would have sold above list, likely around $1.85 million.
Chris Sudore Now, six days on the market, we’ve had three to five showings per day with no offers. The feedback I’ve received says it’s a great house, but buyers are just looking, curious, watching the market, or getting their finances together. Again, based on alI available data, I expect it will sell soon. It has the highest chance of being the next to go under contract, but the parties will probably negotiate to find common ground. The buyers will get a great deal for an outstanding home to live in for years to come. And the sellers, who invested to get it ready to sell, will make their investment pay off.
This isn’t the time for buyers to play a waiting game. This is a chance to get a great house, under the listing price, with better terms, and to have all inspections. There’s room for negotiation, which hasn’t been the case in years. Get in now and start building your wealth. Take the interest rate we have now and refinance in the future. Rates will drop, and you’ll be there to take advantage of it while you build equity in your home.
No crystal ball
Nobody has a crystal ball. Don’t wait around with every other buyer out there to get a jump on your future. If the Fed drops rates to six percent in July or September, there’ll be hysteria again. You’ll be back in the trenches making multiple offers and waiving contingencies.
There’s no predicting what will happen in the short term or what month this year rates will be lowered. You can only take advantage of what the market presents now. Things change and you’ve got to change with them. A house purchase is playing the long game.
The only sure thing I can tell you is you’ll need an experienced, savvy broker to see you through, whether you’re buying or selling. Negotiating is happening on both sides of the table. Sellers need someone who has their backs, who can give them a real sense of what’s happening in the market to achieve their goals. Buyers need a broker with a wide view of historical trends backed by real-time data to negotiate for their best deals.
My team and I pride ourselves on working diligently and using all the information we’ve accumulated to put our buyers and sellers in the best possible positions, with what’s likely their largest financial investment. It’s not just a house or a home, it’s often the key to building long-lasting wealth.
My team, office, and my own home are right here in Madison Park, and we love helping our neighbors make the right moves for them and their future. If you’ve got any questions about navigating this topsy-turvy real estate market, let’s set up a time to talk.
Chris Sudore is a Madison Park Resident. He is Managing Broker Coldwell Banker Bain | Global Luxury. Reach him and learn more at KingCountyEstates.com or at Chris@KingCountyEstates.com