Are there going to be more homes to buy anytime soon?
The spring selling season is upon us, and while it's traditionally the busiest time of year for real estate, this spring promises to be just as competitive as this time last year, particularly for first-time home buyers. With ultra-tight inventory and continually increasing home prices, it’s imperative that a home buyer be ready to make an offer and move forward on a purchase contract at a moment’s notice. Like many people across America right now, if you’re looking for a home to purchase right now and having trouble finding one, you’re not alone. At a time like this when there are so few houses for sale, it’s normal to wonder if you’ll actually find one to buy. There is hope for home buyers, with more houses being built in many markets around the country, homeowners looking for new houses that meet their changing needs will be able to move into their dream homes. When they sell their current houses, this will create opportunities for those looking to find a home that’s already built to do so. It sets a simple chain reaction in motion for hopeful buyers.
Buyers.... Get ready!
Inflation, rising interest rates, and new financing options bringing more sellers into the market. Buyers in King County are jumping for joy over the nearly 40% increase in new listings. King County also saw a 31% increase in pending home sales month-over-month, as well. Inventory still down 19.5% from twelve months ago. Until inventory grows, expect a heightened focus on each new listing coming on the market. Northwest MLS brokers added 7,920 new listings to inventory during February, a 6.8% improvement from a year ago, and a gain of more than 33% from January’s total of 5,927. Pent-up demand led to big month-over-month gains in pending sales and more shrinkage in overall supply. “Buyers in King County are jumping for joy over the nearly 40% increase in new listings that we saw in February compared to January (2,901 vs. 2,083),” noted Matthew Gardner, chief economist at Windermere Real Estate. “No surprise,” he continued, “the result was a 31% increase in pending home sales month-over-month, as well.
Buying a home in a sellers’ market
With home prices constantly sky rocking, it is continuing to look like it is whatever the buyer is willing to pay. And unfortunately for home buyers, these days it looks like it is almost always more than the list price. And although more homes are coming on the market, home buyers are still facing an over completive market, and resulting to an ongoing housing crisis. Home buyers need to be as prepared as possible. With the housing market, we are currently experiencing a hypercompetitive seller’s market with low inventory and many active buyers. This quickly spirals potential home buyers into the frustrating realm of buyer fatigue. Buyer fatigue refers to buyers who have seen so many properties, written too many unsuccessful offers, and are flat out exhausted with the buying process. Searching for the dream home can be an exhaustive undertaking and when you are losing out time and time again you start to feel like you will never win a bid. Conversely, while all of this is great news for sellers because it means an increased sale price and shortened transaction time, it can be overwhelming for Listing Agents and homeowners as well. Sellers and real estate agents having to slog through a dozen or more offers within days of listing a home for sale is increasingly common.
The Western Washington housing market is extremely competitive. The current market value in most neighborhoods is quickly increasing and the sale price of each condo, townhouse, or single-family home sets the precedent for the next one in that neighborhood. New home buyers can fear overpaying when advised to bid above the asking price on their first offer. The cold hard truth is that some houses are selling for upwards of $100,000 over the asking price. Sellers have the leverage and the luxury to pick whichever offer has the highest price and the fewest subjects. With the process of buying a home, buyers are skeptical of market advice and don’t capitalize on opportunities to write winning offers, they can waste crucial weeks, or even months, in a damaging cycle of submitting offers, getting rejected, modifying offers, getting rejected again, then starting all over with the next property. Listening to a knowledgeable real estate agent can help you navigate through this process in a more efficient way.
Home is one of the greatest words there is
Housing demand is high, and supply is low, so if you’re thinking of moving, it’s a great time to do so. There are likely many buyers who are looking for a home just like yours, and there are options coming for you to find a new house too.
The Cascade Team is a real estate brokerage whose focus is centered on customer service. Our customers are our number one priority, and our local agent team works hard to not only find properties that meet your needs and wants, but also leverages their local market knowledge to help guide you through the home search process. Our commitment to excellence in service is unparalleled in the areas in which we serve. While we offer a number of online tools to assist you with your home search, having a knowledgeable local agent to guide you is so important, especially when the local market heats up. Multiple offers, escalation clauses, negotiations, etc., are all critical items in helping you secure your new home, and that's where our service and local knowledge sets us apart.
Beyond educating your buyers about the realities of current market conditions, it’s helpful to counsel them through the ‘identifying wants versus needs’ process—ideally before they start viewing homes and become overwhelmed. There’s no time in a tight market for leisurely decision-making or waffling, and these tips for making your buyers the most prepared they can be.
Are you ready for home ownership?
Consider Monroe. In a real estate market like this, it may be wiser to consider moving further out of the city. It may be a nightmare trying to buy in most of the bigger cities in Washington but going further out into places like Monroe (or other Snohomish County locations) may be easier on many levels. Consider a place like Monroe, where its small city, big town feel has attracted more people each year. As a Monroe resident myself, I found some appreciable things. Such as Monroe being reasonably close to many hikes like Wallace Falls (only 24 min away). Or, if you want to stay local, you can head to Al Borlin Park, which has great reviews, or Frylands Park, which allows you to walk the trail around the lake. Buying a home in places a little farther out like Monroe, you can get more house and property for your money.
Further, it is less competitive in the suburbs, with fewer buyers competing than in the cities. More buyers most certainly drive up the house prices, tag on high-interest rates, and you may likely not be able to afford the house you want any longer. So why stay in the city? The silver lining during the pandemic has allowed many people to work at home, which in return has allowed more people to move to the suburbs. We see signs from many tech companies allowing remote work (at least in part), which will be here to stay. By not having to drive into the city as often, residents have more freedom to buy more house, more land and enjoy the space that municipalities farther out in the county offer. There is no better time than now to consider moving further out! Consider Monroe, where this community grows more and more each year!
Some of the benefits of suburban living vs. crowded cityscapes: open spaces, parks, trails, larger homes on larger lots, and general population sparsity. The suburbs offer extremely convenient access to places like shops and restaurants. People are choosing to go (or stay) further out to spend their money. he eastern parts of the eastside, Snohomish County, and other less populated areas are offering great values for large properties with amenities still close at hand. One of the other benefits is more affordability. The pandemic and working from home have allowed people the freedom to move away from the city. And if people are allowed to continue working from home rather than commuting to an office, they might also realize that they can shop for homes farther outside cities—great news for home sellers who live in more remote areas. Many real estate agents have noticed this glut of eager home buyers first-hand. Others who no longer want to commute to their jobs every day are looking for a home with an office space, making up about 19% of sellers. Another 19% no longer need to live near their jobs. That means they can live just about anywhere they choose.
If buying a home is an investment that you feel that you are ready for, CLICK HERE to search for active properties on my website. It may be time for home owership
Posted by Liza Alley on