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Today’s market is the direct result of low housing supply and high buyer demand. Housing inventory is tight all over the US, which is driving up housing prices and fuelling strong competition among buyers.
How is the current supply and demand situation in the real estate market affecting buyers and sellers? Read on to find out.
Currently, all major cities in Washington State currently have a roughly 2-month supply of homes. That means it would take only a single month to sell all homes currently available for sale if no new listings came out.
In King County, WA, inventory is even lower at a mere 1.49-month supply. This is the key reason why WA continues to see a strong housing market and soaring home prices.
The average home price in WA decreased 4.1% over the past 12 months. That said, home prices are still relatively high, and homeowners have experienced a great increase in appreciation over recent years despite the most recent dip in home prices. Tight housing inventory continues to be a factor that characterizes the WA State housing market.
Here’s what that means for you and your plans to buy or sell.
Right now, demand is very high. According to the map in the infographic, there is “strong” traffic among buyers in most states across the US, including the Pacific Northwest in WA, OR, and CO. In Idaho, buyer traffic is considered “stable,” which means there’s a steady flow of buyer demand, keeping the housing market very healthy.
Housing supply is very low compared to the number of interested buyers on the market in search of a new home. The map on the infographic also displays the level of seller traffic across the nation.
Right now, most states show some stability in terms of seller activity. But in places like Washington State, seller activity is considered “very weak.”
This current activity means:
Expect competition from other buyers. Low supply and high demand means there are more buyers out there compared to the number of available listings. In this scenario, you could easily find yourself in the midst of a bidding war. Make sure that your financial situation is strong so you are in a better position to come out the winner.
Move fast when you find “the one.” In a hot housing market, you may not have time to mull over the listings you’ve seen. If you see a home that fits you and checks off all the boxes, you may not want to wait to put in an offer. While you don’t want to rush into a deal, you also want to make sure you’re prepared to make an offer when the right listing comes along.
Submit your strongest offer up front. When demand among buyers is strong, you’ll need to make sure you put your best foot forward. You’ll likely encounter more frequent bidding war scenarios, which means you’ll need to pull out all the stops to make sure your offer stands out from the rest. That not only means a solid offer price, but an attractive earnest money deposit amount, a closing date that works best for the seller, and minimal contingencies.
This current activity means:
Be the center of attention for eager buyers. The current market is ideal for sellers. With so many buyers looking for a home and so few houses on the market, sellers have the distinct advantage of being able to stand out a little more, even with little effort. If their homes are properly staged and their listing prices reflect current market conditions, sellers should have little problem selling their properties for a hefty price.
Enjoy the likelihood of your house selling quickly. Houses do not usually stay on the market for very long when the housing market is hot.
According to RedFin, the average home in the US sits on the market for 31 days before being sold, which is 4 days more than it was the same time last year. In particularly hot markets, like in Seattle, homes sold in as little as 9 days after being listed, and hot properties can sell in as little as 5 days.
Prepare for a potential multiple-offer scenario. Depending on your home and where you live, it’s not uncommon for multiple offers to come pouring in after listing your home for sale. When many buyers are vying for a small pool of homes, bidding wars are commonplace. This gives sellers the chance to pick and choose which offers they feel are the strongest and command higher selling prices.
Even with these conditions, more homes sold last year than in any year since 2006. Despite the low inventory availability, sales activity was still surprisingly strong, which means people are making their goals a reality.
If you’re ready to move, let’s connect to talk about our local area and how you can take advantage of today’s unprecedented housing market.
In a strong seller’s market, home prices tend to increase at a rapid pace. Let’s take a look at some markets across the country — particularly in the Pacific Northwest — and what their home prices are like right now.
According to Zillow, the average home price in the state of Washington is currently $574,114, as of October 2023. That marks a 4.1% decrease from the same time last year. In Seattle, home prices are averaging $836,889, which is 7.2% lower than the same month in 2022. And in overall King County, home prices currently sit at $813,817, which is 7% lower than October 2022.
Idaho has had a very healthy real estate market over recent months and years. Statewide, the average home price currently sits at $444,557. That’s 8.3% lower than where prices were 12 months ago. In Boise, home prices have decreased 9.5% over the past year and now sit at $468,512.
Colorado has also seen rapid increases in home prices over the past couple of years. But over the past 12 months, home prices have decreased 4.1% and are now averaging $537,600. In Denver, the average home price is $562,400, marking a 4.6% year-over-year decrease. And in the more expensive city of Boulder, home prices are averaging $988,341, which is a 6.1% decrease from the same month last year.
In Oregon, the average home price is currently $494,577, which is 3.2% lower than October 2022. Portland’s average home price decreased 6.5% in the past 12 months and now sits at $532,323.
All these hefty prices have a lot to do with limited inventory and high demand. With mortgage interest rates now on the rise, it will be interesting to see how home prices change going forward.
Do you have questions about rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.