January Newsletter

Happy New Year! As we embark on this journey together, let's embrace the opportunities that the New Year brings, fostering collaboration, innovation, and growth. Join us in exploring the stories that make our community thrive and in looking forward to the exciting successes, meaningful connections, and boundless possibilities that 2024 may bring.

MARKET STATS

Mortgage Rate Update

Ring in the new year! Mortgage rates are over 1% lower than the 20-year highs seen in October of 2020. A 1% drop in rates increases a buyer's purchasing power by over 10%. Buyer demand is also increasing due to the interest rate improvements. Mortgage rates have moved in a sideways direction for the last few weeks and remain in the mid-six percent range. Inventory remains extremely low and is one of the biggest challenges. One of the catch phrases of 2023 has been the “rate lock-in effect” where homeowners are reluctant to sell their current home for fear of losing their low interest rate. Great news: there are signs that the rate lock-in effect may be cooling and more inventory may be on the way. Most people believe interest rates will continue to trend downward in 2024--albeit not in a straight line. According to a new report from Zillow, “ With mortgage rates no longer locked on an upward trajectory, more homeowners appear to be clawing out from under the shadow of the lock-in effect. A Q4 2023 survey from real estate marketplace found that 21% of homeowner’s are considering selling their homes withing the next three years up from 15% one year prior.” Redfin published a similar report showing that listings are starting to increase despite the fact that the majority of homeowners have an interest rate below today’s market rates. Just how low are most current mortgage rates? According to Freddie Mac, 78.7% of homeowners have a rate below 5%, while 59.4% have a rate below 4%. Only 22.6% of homeowners have a rate below 6%. As interest rates continue to move lower, the rate lock-in effect will likely continue to soften and we may see more inventory. For sellers, now may be a great time to sell while inventory remains low. For buyers, if you can find the right home, now may be a great time to buy. As interest rates come down, there is likely to be more competition against other offers.

In The News

The 10 Best Real Estate Markets for 2024 A stubborn lack of inventory and high mortgage rates kept many prospective homebuyers at bay for most of 2023. But as we head into the new year, which markets are poised to see the strongest combined increase in home sales and listing prices? USA Today

Word Around the Block 5 Charming Washington Towns For A Snowy Winter Getaway Near Seattle You’ll want to visit one of these winter wonderlands! These are the top five charming Washington towns near Seattle that are known for their winter recreation, festive events, relaxing resorts and spas, and snowy conditions. Don’t forget to pack your skis and snowshoes! Secret Seattle

The 425 Northwest Idea House is All About Living Well Take a look inside the new 425 Northwest Idea House. It’s not only a new month, but a brand-new year for exploring our city. If you’re looking for some exciting things to do in Seattle in January 2024, here you will find plenty of options. Whether you’re interested in catching a live show, getting outdoors, going shopping, or seeing an immersive exhibition, there’s something on this list for you. The best part is that many of these events are cheap or even free! 425 Magazine Local Events

Top Top 5 Places for Incredible Mocktails in Bellevue Dry January is a popular trend where individuals abstain from alcohol for the entire month. It's an opportunity to reset and focus on healthier habits, and many people use it as a stepping stone to reducing their overall alcohol consumption. While it can be a challenge for some, it's also an opportunity to explore new and exciting options for non-alcoholic beverages. And what better place to do that than in Bellevue, Washington? Bellevue Washington

Lunar New Year Celebration at Bellevue Square February 3rd 11a - 6p The Lunar New Year marks the first new moon of the lunar calendar and is derived from 12 full cycles of the moon. It is celebrated by many Asian communities including Chinese, Korean and Vietnamese. There are 12 Chinese zodiac animals and one is associated with each 12-year cycle. 2024 is the Year of the Dragon. Bellevue Collection

Tips & Tricks 65 Achievable New Year's Resolutions for Building a Healthy, Happy Life Make 2024 your year with these goals that will help you look and feel your best! Good Housekeeping 8 Interior Design Trends Going Away In 2024 Are you planning to renovate your home or give it a refresh in 2024? You probably want your space to look and feel new. Trends have been interesting for the past few years. There’s been a lot of quick cycling through TikTok microtrends for the home such as Barbiecore while many major trends have been sticking around far past their prime. Forbes FOR SALE

TACOMA 1116 East 60th Street 4 BD 1 BA 1,170 SF $425,000 KIRKLAND 5527 116th Ave Northeast 3 BD 2 BA 1,630 SF $1,200,000

RENTON 18847 SE Lake Youngs Rd 3 BD 2 BA 2,290 SF $778,650 SNOQUALMIE 7702 442nd PL Southeast 4 BD 4 BA 2,740 SF $1,280,000

Ames Lake 27805 NE Ames Lake Rd 3 BD 2 BA 1,320 SF $750,000 West Bellevue 600 Bellevue Wy SE, #102 2 BD 2 BA 2,112 SF $1,574,800

Graham 23012 165th Avenue East 3 BD 4 BA 4,426 SF $829,800 Northwest Bellevue 10575 NE 12th PL, #101 3 BD 3 BA 2,210 SF $1,880,000

PENDING

SEATTLE 4227 South Dawson Street 3 BD 3 BA 1,500 SF $849,000 Clearview 17806 Interurban Bvd 3 BD 1 BA 1,296 SF $700,000

Bellevue 1608 172nd Ave Northeast 4 BD 3 BA 2,250 SF $1,599,900 SEATTLE 13002 6th Ave Northwest 2 BD 2 BA 1,580 SF $750,000

REDMOND 16422 NE 43rd Court LAND $1,100,000 SEATTLE 2046 24th Avenue South 3 BD 3 BA 1,670 SF $755,990

BELLEVUE 15865 NE 1st St Bellevue 5 BD 4.5 BA 4,167 SF Newcastle 12001 Southeast 87th Way 5 BD 4 BA 4273 SF $2,062,950

🎉 SOLD IN DECEMBER 🎉

MERCER ISLAND 4140 Island Crest Way 3 BD 2 BA 1,680 SF $900,000 Mill Creek 17728 28th Ave Southeast 3 BD 3 BA 1,680 SF $883,000

Rocky Point 2012 Rocky Point Rd NW 3 BD 2 BA 2,102 SF $499,800 North Creek District 19420 121st PL NE, Unit D 3 BD 3 BA 1,696 SF $827,990

South Rose Hill 12906 NE 78th Place 5 BD 4 BA 3,234 SF $2,600,000 Union Hill-Novelty Hill 5015 256th Ave Northeast 4 BD 3 BA 3,280 SF $1,410,000

BELLEVUE 905 165th Ave NE 5 BD 5 BA 4,740 SF $2,995,000

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Laura Lynn Principal, Managing Broker M: 425.647.0550 laura.lynn@compass.com

David Spalding Managing Broker M: 360.359.6112 david.spalding@compass.com

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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