Friday, June 15, 2018

Washington State Biggest YOY Increase in Nation

The Evergreen State indeed led all comers in real estate appreciation last year according to NAR reports circulating around. This is no surprise to locals but some relief for buyers in in sight as projections for 2018 by the typically optimistic NAR is more like 6% for this year. Sellers will still enjoy appreciation in the market but buyers can feel a little less exasperated as things are settling in.

Washington State had a 12.6% year over year increase only edging out Nevada by a fraction which was also 12.6%. Sellers looking to squeeze the most out of their resale may find a hilltop coming as rates continue to march upward and downward pressure on pricing is inevitable. Double digit market appreciation is never sustainable over the long term and we have had just about enough of it to stay healthy. I welcome a softer climb with modest average price growth in the 4-6% range as healthy and sustainable.

As reported right here recently, the market in the higher price ranges is already switching over to a buyer's advantage while the entry level sub-median range remains a sizzling hot plate of multiple offers and up-bidding. In the final analysis pricing homes properly yields the best results and sellers are well advised to not play games with over pricing or under pricing. Get it where it ought to be and the market will deliver a top dollar buyer in 30 days.

Friday, June 8, 2018

Dads, Grads, and Houses

June is often a big jumping in point in real estate. Typically the market sees a bit of an uptick in listing activity in late April and May which translates into buyer activity in late May and June. Well, hear we are on June 8th, sun is setting at 9 o'clock and things feel about the same actually. Inventory remains very tight under $400k, softens up a bit up to $600k, and up above that things turn in favor of buyers rather quickly!

This is HOT (less than 2 months inventory
In our local market, a seller with a home to sell under $400k that plans to move up to $600k; NOW is the time. You will get top dollar on your current house and be able to reasonably negotiate on the purchase of the new one. One of the recurring themes in my 2010 book, 'Don't Panic' was to buy low and sell high and sellers under $400,000 can sell high and above $600,000 they can buy low, well sort of low ;)
This is NOT more than 12 months inventory

This is a great move up opportunity that may evaporate if rates continue the upward march. rate pressure can soften the entry level market so this window of opportunity to sell in a seller's market and buy in a buyer's market at the same time may not last long.

You didn't see that coming... did you?

Friday, June 1, 2018

Market has become a mixed bag...

June is the start of the summer season for real estate and sellers that want to move out this summer in time for a new school year or just during the fair weather, now is the time to list. Typically the local market sees a modest boost in activity during the summer months and that can be good for both buyers and sellers. Sellers get a few more buyers looking and buyers get a few more houses to consider. It's a good thing all around in a market that has tightened up especially int he sub 400k range locally.

Despite what people may hear watching local and national news outlets, not every sector of our market is a raging seller's market. In the median to sub-median price ranges under $400k seller's are controlling the market with multiple offers and little room for negotiation by buyers. Seller's are still in a favorable position on homes priced up to $500k but above that inventory starts to get flush.

Clark County is sitting on 6-7 months of inventory in the $500 - 750k range which is neutral leaning a bit towards buyer's favor. From $750k - 1M things get worse for sellers with roughly a year's worth of inventory and buyer's are in control. Above one million dollars we have a bloated inventory that would take more than four YEARS to deplete if no new listings are added at the current rate of consumption. Seller's in this price range are truly at the mercy of buyers. 

News media outlets tend to focus on the entry level and mid range prices that are still very hot, but many sellers in the upper range are a bit disillusioned about the market and some are shocked to find unfavorable conditions. This bodes well for entry level and mid range sellers that can still get top dollar for their small house and capitalize on a flush inventory for their larger move-up home.

The real estate market is a moving target and sellers are wise to consult a local pro with experience in the neighborhood they live in. Real estate is a local market and conditions can vary widely between price ranges, housing type, and location.