This market continues to challenge home buyers, but some help might be on the way. There is a lot of talk about multiple offers, sellers taking offers early before the review date, buyers waiving everything, and cash still being king. Though I haven’t seen it in the news media outlets, interest rates are starting to increase. With interest rates on the rise, the virtually-free money being thrown at this market could subside a bit.
The commonly held opinion is that capital gains taxes are reportedly going up. This could break up the log jam of sellers wanting to sell to avoid a higher capital gains tax. Included as an influencer is the speculation that Washington State will adopt its own version of a capital gains tax which would be in addition to the federal tax.
The bright spot for the work from home buyers is they can get into less competitive markets in outlying areas. I think we could all take a page from REI who announced its first satellite office location in Issaquah saying, “The property will test a model that allows employees to work from home up to five days a week. It's one of the region's first tangible examples of what work will look like in the post-COVID-19 world.” I don’t know about you, but I suddenly want to shop for some outdoor gear, don’t you?