By Angie Hall
Happy 2023 to you and your families. We are sending thoughts for a healthy and happy year ahead!
2022 proved to be an exciting and, at times, uncertain year in real estate. As interest rates nearly doubled, there was a definite pause in the frenzy. Gone were the days of 10+ offers and escalations up to 40% over list. Talks of prices plummeting and the sky falling sank in.
However, Burien remained strong and still saw home values increase; the median sales price in January 2022 was $565K. The year ended with a median sales price of $625K, a 10.6% increase. I’d say Burien is proving to be a great community to live in and invest.
What can we expect this year?
While I do not have a crystal ball, I can make some general predictions, based on reports from trusted real estate market sources. The media, at large, is painting a harsh year ahead, but we need to dig a little deeper and see what is really going on. Remember that the housing market cannot be wholly lumped in with the general economy. Housing has too many other variables at play (supply/demand, migration, life changes, etc.).
Yes, housing affordability will continue to be a challenge.
Yes, inventory is expected to remain historically low.
Yes, buyer demand remains in place, especially with talks of interest rates dropping below 6% this year.
No, there are no signs of a market crash (supply is way too low and demand too great to support this theory).
A quick inventory chart for Burien illustrates why I do not believe a crash is on the horizon (as you can see, inventory appears to be heading back down).
My advice for 2023: the time to buy or sell will always be when you are ready. As much as we try, we cannot time the market perfectly. Go with what is suitable for you.
Buyers: prices are expected to stabilize, not drastically drop (or may not even drop at all).
Again, if your situation is desiring to buy, I’d recommend doing so; long-term real estate has proven to be a profitable investment.
Sellers: while you should not expect the market to return to the perfect storm of 2020-2021, you can anticipate that there will be very active buyers, and the market needs inventory which is always beneficial to sellers.
I look forward to providing you with Burien Real Estate Market updates this year. I so enjoy living in the Gem of the Sound, as always, continuing to support our wonderful local businesses!