Increasing interest rates have not slowed the pace of sales. Lifestyle changes and a strong job market will continue to drive the market into 2022 and beyond. To put this into further perspective, King County had only 1,149 active listings at the end of November - the lowest - and a 90% decrease since November 2010 when there were 11,867 active listings. This is hampering existing sellers from moving up. Baby boomers find themselves in large homes and not needing the space, but they are hesitant to sell without a place to go should they want to stay in the region. On a brighter note, new financing options are expected to develop during 2022, the "modern bridge loan," which would give homeowners the ability to sell their current residence after they've found and purchased their new home. Every year has its own market dynamics, but with seasonal similarities most years.  

Given what has been the extreme shortage of inventory in the Seattle market, there is currently a seasonal market opportunity for Seattle urban shoppers for condominiums and townhomes. Homes are coming off the market faster than they are coming on. We have, however, seen a decrease in the number of multiple offers on new listings, and we continue to see steady open house traffic. 

With this fast-paced market, if a seller puts their home on the market in early December when there are fewer listings but still a lot of buyers, it could likely be off the market by Christmas.  Builders and developers are scrambling to bring on new inventory in all sectors. The current inventory, with only 0.57 months of supply, is "drastically low and fueling the increase in median prices." 

Kitsap County is a great value and a magnet for surrounding communities with loads of infrastructure improvements and companies moving into the area. MLS figures show the median price in Kitsap County, at $500,000, is about two-thirds of the median price in King County ($740,000).  The return to these suburban areas seems to continue unabated as first-time buyers seek value and those seeking a more relaxed lifestyle are taking advantage of low interest rates. Area-wide, the November numbers were pretty much what was expected with the market starting to slow as we move into the winter. 

Recent adjustments in Federal Housing Finance Agency (FHFA) limits for conforming loans (mortgages backed by Fannie Mae or Freddie Mac), which included a record 18% jump in most markets, but also an increase from $776,250 to $891,250 in the higher-cost tri-county area encompassing King, Pierce and Snohomish counties will be a further boost to more expensive markets.