When Your Starter Home Becomes Your Forever Home

So, imagine we’re at lunch, chatting over sandwiches, and you ask me, “Katie, what’s going on with the housing market? I keep hearing about high interest rates and low inventory, and honestly, it’s all starting to blur together.”

Here’s the thing: you’re not imagining it. Things are weird right now—and it all comes down to something called the “mortgage lock-in” effect. It sounds technical, but it’s actually pretty simple. Tons of homeowners scored crazy-low interest rates during the pandemic (like 2%–3%), and now that rates are sitting in the 6%–7% range, they’re thinking, “Why would I give up this deal?” So they’re staying put. That’s the “lock-in”—they’re financially locked into their current homes.

And this isn’t just a Seattle thing. A big study recently looked into this nationally, and it found that the lock-in effect is a huge reason inventory has dropped. People aren’t moving unless they absolutely have to—like for a job, divorce, new baby, or maybe retirement. But gone are the days when folks moved just because they wanted a bigger backyard or a fancier kitchen.

Now, here’s where it gets interesting for us in the Seattle area.

Even though nationally things are kind of stuck, Seattle isn’t totally frozen. In fact, King County saw an 8.7% bump in new listings compared to last year. That’s not huge, but in this market? It’s something! And when you look at places like Maple Valley, Renton, and even Issaquah, things are definitely still moving. Prices are holding pretty strong too—we’re not seeing the massive drop-offs that hit some other cities. Zillow says Seattle home values are up nearly 4% compared to this time last year. That’s solid.

So what does all this mean for you?

If you’re a buyer, yes—interest rates are still high compared to what they were a few years ago. But you’re also not competing against 30 other offers on day one like we were in 2021. There’s a little more breathing room, and some homes are sitting long enough for you to actually think about them for more than 12 seconds. (Imagine that!)

If you’re a seller, it’s a bit of a mental hurdle. You might love your low mortgage rate, but you also might be outgrowing your space or wanting to relocate. If you’re in that boat, I’d say this: Buyers are still out there. The key is pricing right and putting in the prep work to make your home shine. Clean, staged, and move-in ready still sells fast—especially in the more affordable price ranges.

One more thing I’ve been telling clients lately: Don’t let interest rates be the only thing driving your decision. If you find the right home, there’s always the option to refinance down the road if rates dip. And if you wait for “perfect,” you might miss out on a really great fit for your life right now.

This market isn’t hot or cold—it’s just… complicated. But that’s where having a local guide really helps. If you ever want to talk specifics for your neighborhood (or your neighbor’s, or your in-laws’…), you know where to find me.