As the summer of 2023 unfolds, the Gig Harbor housing market continues to capture the attention of buyers, sellers, and industry experts alike. As a Gig Harbor realtor with 25 years of experience, and I’m here to provide you with a firsthand perspective on the current state of the Gig Harbor housing market as of summer 2023.
The long and the short of it is that, contrary to what some may think, the market has actually increased 3% this year. While with higher interest rates it may seem like a bad time to buy a home, the slight market plateau and cooling of multiple-offer situations means that it’s actually easier to buy a house now and refinance later, rather than wait on interest rates to go down and face fierce competition later.
Read on to explore the details of what’s been happening and how you can respond to it.
The Trajectory of the Market
Throughout this year, the Gig Harbor housing market has been on the rise, showing a solid 3% increase in prices. However, we did experience a bit of a plateau at one point. Now, the burning question on everyone’s minds is whether it’s better to wait or make a move now.
Predicting Market Movements
In my professional opinion, I believe that the market will continue its climb, and we can expect prices to rise even further. The primary catalyst behind this projection is the anticipated drop in interest rates towards the end of the year. As those rates decrease, buyers’ purchasing power will likely increase, which can lead to higher prices and the resurgence of escalations and bidding wars.
“Marry the House, Not the Interest Rate”
Here’s a valuable piece of advice that I always share with my clients: prioritize finding the right home rather than obsessing over interest rates. While it’s true that refinancing later, when interest rates drop, can lower your monthly payment, it’s essential not to lose sight of the intrinsic value of the home itself. Remember, your long-term satisfaction depends on finding a home that meets your needs and aligns with your vision.
Historical Perspective on Interest Rates
Let’s take a moment to put things into perspective. Although the current interest rates may seem high when compared to recent years, they are still relatively low when we look at historical data. For instance, when I bought my first house back in the 90s, the interest rate was a staggering 8 1/4%. Just imagine that! And to go even further, my parents secured their mortgage at a jaw-dropping 14% back in 1974. It’s important to acknowledge that the current housing market is already at a historical high, making direct comparisons a bit tricky.
As we venture into the summer of 2023, the Gig Harbor housing market continues its upward trajectory, driven by various factors such as increased buyer power due to anticipated interest rate drops. Remember, my friend, don’t let the pursuit of a lower interest rate deter you from finding the right home. While it’s tempting to wait for a potential market drop, your focus should be on fulfilling your homeownership goals. Rest assured, refinancing options can always be explored later to lower your monthly payments.
If you’re considering buying or selling in the Gig Harbor housing market, I encourage you to reach out to a knowledgeable realtor, like me, who can guide you through the intricacies of the current market conditions. I love serving my clients and would love to chat if you have any questions about the market right now.