SEATTLE — Concerns following the collapse of Silicon Valley Bank and Signature Bank have trickled into the real estate market. But has it impacted the real estate market in Washington state?
Marketplace reported the collapses are causing prospective homebuyers to further navigate financial planning while figuring out how widespread the systemic risks are.
The Federal Reserve raised the target federal funds rate by .25% points last week.
According to Adriano Tori, CEO and founder of RexMont Real Estate, rates could start climbing again in as little as a month which could make now the ideal time to consider purchasing a home.
Tori said most prospective homebuyers meet with financial experts to figure out their budget. He said locking in a mortgage would provide homeowners with predictable monthly payments for the next 30 years versus three decades of potential rent increases.
Currently, in the Seattle Metro real estate market, Tori said he is seeing more people jump into the homebuying market and he said most homes are selling at the asking price, or at about 3% above the list price.
According to the National Association of Realtors, the Midwest and South regions are leading the way for housing market recovery across the nation, according to the Pending Sales Index (PHSI).
The Northeast PHSI raised 6.5% from last month to 72.5, a drop of 17% from February 2022. The Midwest index improved 0.4% to 84.9 in February, a decline of 16.5% from one year ago. The South PHSI grew 0.7% to 99.3 in February, dropping 21.7% from the prior year. The West index decreased 2.4% in February to 64.6, shrinking 28.4% from February 2022.