25 Feb Pacific Northwest Real Estate Market Update – February 2021
Median home prices in the Northwest have increased 14.3% since January of last year. Buyer demand has more than tripled despite the pandemic. In January 2020, there were about 2 buyers per listing compared to the current 10 buyers per listing. Buyers competing in the market today are not only single family home buyers. House flippers are looking for available homes. “Buy and hold” investors (those who buy homes and hold them for an extended period, often renting them before sale) are also snatching up properties. Those looking to use their 1031 exchanges (swapping one investment property for another) while taking advantage of their equity are competing in the market as well.
We are not expecting to see a decrease in buyer demand. The Federal Reserve Board continues to maintain that interest rates will be kept low. Also, the Biden administration is proposing a first-time home buyers tax credit of $10-15,000. Buyers will be able to access this credit at closing to be used for a down payment.
For Sellers:
Now is a great time to sell and use your equity to buy another home or investment property. There are predictions that more inventory will be coming onto the market depending on when the foreclosure moratorium ends. Some sellers in forbearance may need to sell, use their equity, and downsize while the economy keeps recovering. The sooner you can list your home, the better.
For Buyers:
Look at homes that have been on the market longer than a week. Sometimes they pop back on due to a buyer backing out, but it’s a perfectly good house. Also, if you have a specific neighborhood or criteria you are interested in, let’s set up a consult to see how I can reach out to potential sellers in your desired area.
Three Takeaways
1. There may be a slow increase in available homes, especially when the moratorium on foreclosure ends. However, this potential inventory increase will not be enough to affect home prices.
2. We will continue to see high buyer demand.
3. Median home prices by county:
King: $729,990
Snohomish: $550,000
Pierce: $425,000
Kitsap: $420,000
Jefferson: $450,000
Clallam: $350,000
Whatcom: $450,000
Clark: $402,950
Reaching Your Real Estate Goals
If you are a seller, take advantage of the low inventory of homes. Let’s get your home on the market sooner rather than later. There are ways to safely show your home right now, including virtual tours and appointment-only showings.
If you are a buyer, don’t feel discouraged. Persistence, a good strategy, and a strong home buying team is essential for your success.
Home and Land Buying Class
Please join me on Saturday, March 13th at 10 AM for a 40-minute, online class that will cover everything you need to know about buying property. Learn about unexpected costs, the current real estate market, types of financing, what happens when you’re under contract, and more. This class is free and there are no obligations for attending. Please invite a friend and come and join us. Sign up now!