2020 State of the Market

Every year around this time, The President of the US gives their State of the Union address. I like to take this time to give my State of the Market which gives a snapshot of where we have been and a peek at where we might be going in regards to real estate.

Regardless of which side of the aisle you sit, many of the things President Trump discussed are having a huge impact on real estate and housing across our country. Locally, the strong economy, raising wages and low interest rates are prompting buyers to seek housing, which is in short supply. After a brief increasing of inventory in Spring 2019, with the corresponding slight dip in prices, buyers came out and absorbed most remaining inventory going into the year end.

Below are my main take-aways, (click here for my entire 2020 State of the Market)

  • Sellers
    • We need your home if you’re ready to sell.
    • Use the ‘Costco approach’ and list early to beat the crowd and get more buyers – I recommend by the end of March, not April which is the traditional wisdom.
    • Start packing! Properly priced & presented homes sell & close quick!
  • Buyers –
    • Start looking early.
    • Get your financing in order to make a strong offer.
  • Investors-
    • Call me to discuss & analyze your particular property type, but the market remains strong for sellers and opportunities are out there for buyers.

Thanks for making 2019 an awesome year, I look forward to hearing from you!

Inventory woes continue into 2020!

As I wrote in my December blog ( Here ), buyers got the memo about more choices and low interest rates and continued their buying into the Holiday season. This buying activity absorbed lot of the remaining inventory and has lead to an even tighter market. Inventory of single family & condo properties across the entire 23 county NWMLS (Northwest Multiple Listing Service) is down at year end by 31% with the I-5 corridors counties of Thurston (-54%), Pierce (-38.9%), King (-38.8%) & Snohomish (-35.6%) leading the way.

While December is typically a slower month, activity stayed brisk across all categories. Closed sales in December were up 11% (reflecting Novembers results) and December Pending sales (the best indicator of current market activity) were up 4.7% over last year. Even more close to home, Coldwell Banker Danforth had the best December ever and my listing had showings every day but Christmas & New Years in the last two weeks of the year. It went pending shortly after the 1st. ( 5508 S 2nd Everett, WA ).

Going forward, some brokers feel that prices may moderate as spring inventory increases. While I agree, I believe it will be short lived. My best advice is as follows:

  • Properly priced and presented homes will still sell at a premium.
  • Sellers should take the Costco approach, bring your home to market earlier than every one else. While most market advice says mid April, I am advising anytime between now and then that you are ready but no later than March 15. Those buyers who trusted this advice last year did quite well, as the buyers were out but sellers were not quite there yet with more choice.
  • Buyers, as always, be prepared, have financing in order and move quick.

Data excerpted from NWMLS January press release. Click Here for full report