Market Update March 30, 2022

EMAIL LITE™ THIS WEEK
With two new listing coming online tomorrow (and another one in the works) I don’t have the usual amount of time set aside this week for my real estate deep dive.

That being said, there are some topics I’d still like to share that are worth paying attention to:

• Yield curve inversion!
  Why is this important? Every recession has been preceded by a yield curve
  inversion. Note: Not every yield curve inversion produces a recession.
• 30-yr Mortgage @ 5.5%
  Why is this important? Skyrocketing rates indicate that the market is taking back the wheel from the Fed when it comes to setting rates.
• Demand destruction
  Why is this important? Much like other commodities, housing prices are correlated to supply and demand. How much more demand destruction (soaring interest rates) do we need to see before it negatively impacts housing prices? Note: First-time home buyers are seeing their home affordability dissipate in front of them. If rates continue to trend up and hit 6.5%, they will only be able to afford a $275K house, whereas the previous rate of 2.75% afforded them a $400K house. Demand destruction starts with this group.
• Gig Harbor Low Supply
  Why is this important? Agents are still clamoring to get their buyers to just see a house. Sellers are still getting top dollar (over listing). On the low-end 5% over asking and on the high-end 25% over asking. Note: March so far had more listings than February we’re in still short supply. Historically we see a surge in listing in the Spring market (starting May)

TOMORROW’S LISTINGS

Dash Point

• Listing Price: $998,650
• Beds: 4
• Baths: 3
• SF: 3,218 SF
• Perks: Views, Master on Main
• Photos: https://www.aryeo.com/v2/1915-austin-rd-ne-tacoma-wa-98422-1696723/branded

Stadium District Condo

• Listing Price: $478,650
• Beds: 2
• Baths: 2
• SF: 1,124 SF
• Perks: Views, Loft, Location
• Photos: https://www.aryeo.com/v2/1-broadway-306-tacoma-wa-98402-1718213/branded

They’ll go live tomorrow, sometime in the early afternoon. I’ll give you in the inside scoop on the activity and prices.

March data will be included in the next email.