It has been an ongoing trend for most of 2017 and especially towards the last few months of the year. The Real Estate industry has been reporting that the greater Puget Sound region continues to have very strong market activity even during periods of typical seasonal slowdowns. This robust activity is being driven by positive job growth and attractive interest rates thus ensuring a very hungry market even with little inventory thus tipping the supply and demand scales and driving prices upward.
Some Quick Facts and Figures:
- For the MLS area overall, inventory shrunk 19 percent, from 10,569 active listings at the end of 2016 to last month's figure of 8,553. That's the smallest selection for any month in the past decade. For the fourth time this year (2017), monthly inventory dipped below the 10,000 mark, a level not reached at any other time during the 10-year comparison.
- Despite the paltry supply, last month's sales remained remarkably strong, with closings up slightly (0.88 percent) from a year ago (2016).
- "While pending sales are down double digits in King County, it's not because there are fewer people buying, it's because there is far less to buy, That's why home prices tell the true story of this market and the huge discrepancy between supply and demand. As long as this imbalance remains, prices will continue to see steep increases, just as they did in December and throughout 2017." - OB Jacobi, president of Windermere Real Estate.
- Within the Puget Sound region, King County registered the sharpest escalations at nearly 16 percent. Year-over-year prices jumped from $505,000 to $585,000. For single-family homes in King County, the hike was similar (about 15.5 percent), rising from $550,000 to $635,000 at year-end.
*Source Info: NWMLS January Market Update
Owning a home is the best pathway to wealth. While we agree that this statement sounds lik...
What Does This Mean For You as a Seller?
"While all year we've been bemoaning lack of inventory and escalating prices, the statistics show 2017 was a banner year in many respects for real estate in the Puget Sound region and throughout the Northwest," stated Mike Grady, president and COO of Coldwell Banker Bain. He cited year-over-year gains in both prices and values, commenting "As a result of this strong market, homeowners are experiencing bountiful gains in property values."
Simply put, now is a great time to make your upgrading or downgrading move. Getting that home listed in the current state of the market ensures better offers and nice profit margins. Looking at upgrading to a luxury home? The amount you get for your current home may be able to cover much of the down payment. You may get the better space you have been looking for this year. Planning to downgrade and look for a better retirement space? The value of your current home just might make your retirement portfolio a lot better.
Much as we wanted to keep the giddiness out of this piece of news, we can't. Here'...
How is This Relevant to You as a Buyer?
"December, which has historically been a slower month, picked up momentum and never let up, (it) drew aggressive buyers, some motivated by expectations of a flattening market, with others trying to beat anticipated interest rate hikes," reported George Moorhead, designated broker at Bentley Properties.
We have been educating people for most of last year regarding the current state of the market. For first time home buyers, the rising prices may be a steep undertaking, however, much like buying your plane tickets or booking that hotel room, the further you put it off, the higher the rates will be.
According to the National Association of Realtors®’ 2017 National Housing Pulse Survey,...
Majority of home buyers according to the newest market report are buying for lifestyle reasons like a new job, transfer of job or duty station or household size either getting bigger or smaller. Whichever the case may be for you personally, one good thing you can look forward to for this year according to the trends is that homeowners and Real Estate investors will see positive returns for the year.
Want to know more about what options you currently have available in the market? Come talk to us!
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