There are two key market trends that most significantly affect your home’s market value: MARKET VALUE What affects
INTEREST RATES
INVENTORY
Interest rates directly impact buyers’ affordability, which in turn influences market value. Assuming your property isn’t targeting cash-only buyers, changes in interest rates can either expand or limit what buyers can afford. For example, if rates rise from 6% to 7-8%, a buyer’s purchasing power decreases—they may no longer qualify for the same loan amount, forcing them to consider lower- priced homes. This shift causes buyers in higher price ranges to move into lower ranges, including your price point. As a result, what buyers can get for their money shrinks, leading to increased hesitation and “willingness to wait” in the market. This slowdown can push prices downward, even if only by 5-10% over a year or two. Inventory , or the number of homes like yours currently available, also plays a critical role in determining market value. When inventory is low, your home faces less competition, and buyers are more likely to pay a premium—a "monopoly effect" of sorts. Conversely, if multiple similar properties are on the market, buyers have options, which can drive prices down. The ultimate seller’s market occurs when interest rates are historically low (or have recently dropped by 2-3%) and inventory is sitting at 2-3 months or less. If both conditions align, sellers can expect stronger demand and higher sale prices. (We can easily check current inventory levels for your market.) As of early 2025, Grays Harbor is experiencing an increasingly “balanced” market (equal buyer demand to inventory), with steady inventory levels and the potential for decreasing interest rates heading into the year. This combination bodes well for buyers’ affordability and positions your property advantageously for a successful sale. Timing is key, and we’re here to guide you through market shifts to ensure the best possible outcome for your sale.
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