I’m sure you are hearing that we are moving toward a traditionally normal real estate market. Gone are the times when 90% of the homes are selling in hours and days. Gone are times when the SOLD price is 10% to 20% over the seller’s asking price. By definition, we are still in a seller’s market with about 2 months of inventory. But even though buyers are taking a sigh of relief, this is still a tough market.
Buyers are facing mortgage interest rates that have climbed to 7% for the first time since 2001 as reported by Freddie Mac, and the prices of homes in Settle’s Eastside have gone up nearly 50% in just 2 years. It’s no picnic for a seller either. They have to realize that the competition for buyers is brutal as shown by the huge increase in months of inventory and days on the market. Also, home prices have settled. The seller’s list price is critical. Buyers are looking at the new listings and those that sit will do just that until there is a significant adjustment in price.
So, what is a traditionally normal real estate market? I took a look in the Northwest Multiple archives and made a spreadsheet for you. Back in 2002 it looks like we had just that. Prices were stable, 45 days on the market was common, half the properties were selling in the first 30 days, and we had 4.65 months of inventory. Pricing homes was easy for sellers, and buyers had plenty of homes to look at. Still, the best homes priced right SOLD first and always for more money. Sellers had to properly prepare their homes for sale and buyers had to be ready to make quick decisions.
Buyer’s today are very picky. They want homes that are inspected, repaired, updated, and priced right. Sellers that deliver anything less will pay the penalty in lost dollars and lost time. That is a conversation for another day. Bottom line, my advice to both sellers and buyers would be to work with an experienced knowledgeable REALTOR® and listen to their advice. If you don’t trust them… find another broker.
Leave a comment below if you have been thinking about a move and have any questions …
Check REX2020.com for more blog posts and information about the market and strategies for sellers and buyers. This information is valuable and timely for today’s real estate market.
Contact Tom Perry Directly … Discuss your ideas, explore your options and now or in the future… Set a plan to make that move!
Not all brokers are REALTORS®. We are held to a higher standard. Beyond the education, we are held accountable to the REALTOR® Code of Ethics. Always ask, “Are you a REALTOR®?”