In January, I had the pleasure of attending Realogics Sotheby’s International Realty’s latest Market Maker event, with an incredibly insightful keynote address from Kurt Owen, Sr. Vice President & Portfolio Manager at UBS Financial Service. Owen dove into a topic that is top of mind for most Americans right now: the Trump Administration policies. The potential implications for residential and commercial real estate in the United States was something that I, my colleagues, and my clients, are particularly interested in. You can find RSIR’s full recap blog here.
If you’re concerned about the effect of this new landscape on mortgage rates, you’re not alone. Mortgage rates continue to be a pain point for buyers wondering what they can afford and sellers wondering if they should hold onto their lower rate versus trading it in for a new home with new loan and higher rate. Kurt Reiman, Head of Fixed Income, CIO Americas at UBS Financial Service, touched on this concern and how inflation has affected rates. Reiman doesn’t rule out the possibility that 10-year rates could top 5% this year on inflationary tariff concerns before falling back closer to 4% by the end of the year. “All else being equal, this should have beneficial effect on mortgage rates,” he added. “But the path may not be a straight line.”
In a recent mortgage forecast blog from RSIR's lending partner Movement Mortgage, they forecasted that mortgage rates will drop to 6.5% towards the end of the year. If you were hoping that 2025 would present significantly lower rates, as many people were, I’d like to remind you that although high rates are a hurdle, they shouldn’t deter you from your real estate goals. There are ample loan avenues that can help with affordability, depending on your situation. For example, Movement Mortgage touched on their DSCR Loan in their blog, designed to help investors, landlords, and those who fix and flip homes. If you’re searching for an amazing investment opportunity, check out my listings for two exciting properties perfect for the savvy investor.
If we zoom in on our local markets, we can see that although homes are spending more time on the market, we’re also seeing more inventory—which is great news for buyers—and higher average sales prices—which is great news for sellers. In Seattle, there was a year-over-year increase (as of January) of 70.3% in new listings. In Bellevue, there was also a major increase in new listings, up 50.9% year over year. The average sales price in Bellevue increased 24.3% to $1.9 million in January 2025 compared to January 2024. Seattle is now considered a neutral market with 3.2 months of supply while Bellevue remains a seller’s market with 2.2 months of supply.
The real estate market is constantly evolving, and it’s important to keep an eye on the data, trends, and headlines to make the most strategic move. I’m happy to serve as your market expert and guide you through your real estate journey. Contact me today with questions or to discuss your goals.