Seattle-area home listings spike
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The number of Seattle-area homes available for purchase was up 27.5% in October compared to a year earlier, Redfin data shows.
Why it matters: The mortgage "lock-in" effect, which has contributed to the country's housing crunch by deterring homeowners from moving, won't vanish next year. But experts say more home listings will shake loose.
Between the lines: Economists expect mortgage rates will stay above 6% in 2025.
- "A substantial number" of homeowners will remain reluctant to give up their less expensive mortgages, Realtor.com chief economist Danielle Hale tells Axios.
Yes, but: The Seattle metro area has seen a big spike in new listings lately.
- Over the four weeks ending Dec. 8, the number of newly listed homes in the Seattle area was 16.9% higher than a year earlier, according to Redfin.
- That was the third-highest percentage increase among the 50 most populous U.S. metros.
The big picture: At the same time, demand among homebuyers has increased, with home tours, mortgage applications and pending sales rising nationwide, per Redfin.
- Some sellers have been putting their homes on the market to try to take advantage of that spike in demand, the Seattle-based real estate company said in a report this month.
What they're saying: "Financial uncertainty" ahead of the November presidential election was another factor dampening homebuyer demand earlier this year, per Redfin.
- "House hunters were hibernating," Chen Zhao, Redfin's economic research lead, said in a written statement. "Demand was slower than we would have expected, even with high mortgage rates."
- Now, "demand is settling into its new, post-election normal," as buyers have accepted that mortgage rates are likely to remain above 6% for a while.
The bottom line: Despite glimmers of hope in the form of increased inventory, 2025 is looking like another tough year for home shoppers.