As we head into a new season and welcome sunnier days (please!), we are transitioning from an extreme seller’s market to one of significantly more balance. It’s an adjustment for sellers to accept, and an opportunity for buyers to embrace. After a 30-35% increase from January through April, we’re starting to see prices plateau, and in some areas and price points we’re starting to see prices come down some. Buyers have more options and are more often able to successfully secure homes without competing, escalating in price, and waiving all contingencies. We’ve recently been able to secure two properties for buyers with an ultimate purchase price below the listing price and retaining standard contingencies. Our happy clients couldn’t be more pleased.
Listings are seeing fewer offers and longer days on market. As is the case in a more balanced market, there will still be homes that attract multiple offers. We’ve had a buyer and seller recently involved in a multiple offer situation and the price escalated over 10%. Just about every year that I can remember we see a period where the intensity subsides. The time of year this shift occurs varies, as does its duration and underlying circumstances.
Last month we saw 10% more listings than the same time the previous year. In Snohomish County, listings doubled what we saw last year after months of being one of the counties in our region with the lowest inventory. Some believe that this general increase in inventory will cause severe price reductions, but it’s important to consider that, even with this uptick in inventory, there is still less than one month of supply in our region. Compared to last year, pending sales decreased by 12%; however, compared to April, sales were up 8%. Prices in our greater region dipped 3% from the same time last year and were up 9% from April; however, King County single family homes remain unchanged from April to May.
We’re entering the summer season, when our area traditionally sees an increase of inventory and a plateau (or, some years, slight decrease) in home prices. Interest rates are on everyone’s minds, and it’s certainly playing a huge role in buyers’ affordability. Rates are now hovering in the 5-6% range, where they likely will stay. It will take some time for buyers to adjust to this new normal but it will happen. We’ve had many years over the last two decades where interest rates were in the 5-7% range and the market continued to be strong.
For anyone considering selling their home, there are strategic ways to position a property to maximize profits. For those on the sidelines thinking about buying, there are some fantastic opportunities. My team and I pride ourselves in taking a holistic approach when advising our clients, and for some that means waiting. If you or someone you know is in need of any real estate advice, don’t hesitate to reach out. I’m just a call/text/email away.
