Local real estate continues to be a bright spot in the local economy. Sellers are encouraged to sell in a market with more buyers than inventory, short selling timelines, and upward price pressure. Buyers are encouraged to buy with record low-interest rates which increase their buying power. It is clear that now is a good time for sellers and buyers to explore their options to facilitate extended or permanent working from home options, changes to outdoor living/playing features, enablement of multi-generational family living, and/or investing in rental properties. Here are the key stats and information you should be paying attention to.
Eastside Real Estate Stats
Pending Sales represent current market activity and are a good forward indicator of the market. The pandemic had a dramatic impact in April but each successive month has shown considerable improvement.
• April Pending Sales - down 52% compared to last year (2020 Residential Sales 480 vs 997 in 2019)
• May Pending Sales - down 25% compared to last year (2020 Residential Sales 778 vs 1,031 in 2019)
• June Pending Sales – up 6% compared to last year (2020 Residential Sales 933 vs 883 in 2019)
• July Pending Sales – up 16% compared to last year (2020 Residential Sales 968 vs 833 in 2019)
Multiple offers on homes reflect the shortage of inventory as compared to the buyer demand. In July we saw 42% of homes sell above list price (indicating multiple offers), up from 34% in June of this year and 24% from June 2019. In addition, 57% of the new listings at the end of July, contained a review date instead of accepting offers as they come in. Review dates are a seller strategy that encourages all interested buyers to view the property (between list date and review date) and, if the market value supports it, it can trigger multiple offers on a home. We expect a similar level of multiple offers in August and into September.
Puget Sound Area Economic Forecast
The pandemic hit the tri-county area hard (King/Snohomish/Pierce) with approximately 332,000 jobs lost. In the last 90 days over 122,000 jobs have returned and we are hopeful that more jobs will return as we move on through to the end of the year, although we expect the pace to slow. The housing numbers haven’t been as negatively impacted as you might expect from the job loss, while we have had some slowing sales due to low inventory, but prices have continued to increase, and activity is increasing based upon the low mortgage interest rates. We expect to continue to see solid housing demand, with the number of sales only limited by the available inventory.
The big trend to watch is whether we see substantive movement out of the urban areas into the suburban and rural areas as more people are able to work remotely on a permanent basis.
Want to get expert guidance on your home sale or purchase? We would love to hear from you, please contact The Blue Team at www.BlueRealEstateTeam.com.