The Home Ownership Conversation with Family & Friends

There is plenty of chatter around the conversation of home ownership with our family and friends. You’ve seen the headlines in the media and you’ve watched interest rates climb this year. So what IS happening in the local Tacoma real estate market? Take a listen as Jenny sits down with Windermere Abode owner, Dave Jones, on the Inside Abode podcast HERE!

1. What’s happening in our local real estate market?

Recency bias. The market we were in earlier this year and in 2021 is not the same market we have today. The big takeaway: be careful to not only compare the current market to the market frenzy of the last year alone. When we step back and compare our current market, it’s reiterated that we are in a more balanced market. Are we going into a recession or in a recession? More on this below.

2. How can homebuyers manage the increased interest rates?

Know your numbers. Partner with a lender and determine what the best financing option is for you. Your choice of financing could depend on the home! Not sure where to start? Become familiar with financing options and connect with a local lender.

3. Are we in a recession?

We are! Technically speaking we are already in a recession. GDP has been negative both Q2 and Q3, so we are ALREADY in a recession! The housing market hasn’t crashed and we are not expecting it to happen.

4. The silver lining in a shifting market…

Buyers who are using lower downpayment financing options have more options. Homebuyers shopping with FHA or VA financing are having their offers accepted. There is a greater chance for seller concessions and/or negotiating down the price, in this shifting market.

5. Why does the number of homes for sale matter?

Supply and Demand. Demand has decreased because of sky rocketing interest rates (the quickest increase we’ve EVER seen). In turn, we’ve seen a growing number of homes on the market (our sell through rate has slowed). The supply of homes in the Tacoma/Pierce County market is still under what many economists define as a balanced market. However, the days on market has increased significantly. If you’re a seller, expect your home to be on the market longer than your neighbors home was in 2021. For the first time since 2018, the months of inventory based on closed sales has increased from August to September.

6. Affordability in Pierce County

Buying a home is a longterm life plan. Budget your monthly spending, plan in partnership with an industry professional and don’t loss sight of your goal of being a homeowner – it’s an important life goal. Once you are a homeowner (and if you are anxious about your new financial obligation) consider renting out a room or space in your home to alleviate your financial burden. Curious about the most affordable neighborhoods in Pierce County? Find out HERE!