Now that the holiday season has come to a close and we have entered into a new year, a new wave of buyers will be surging into the real estate market. If you read our previous blog, then you already know that even during the holidays, when the real estate market typically sees a dip in activity, it was raging as strong as ever, with double-digit increases in new listings, pending sales, closed sales, and prices.
With a very tight inventory list, even lower mortgage rates and high buyer demand, it’s no surprise that 2020 ended the same way it began – extremely out of balance. Here are some figures to illustrate this fact: At month end, there were 4,732 total active listings system-wide in the MLS database, which encompasses 25 counties. That’s down 44% from a year ago when the selection included 8,469 listings. Measured by months of inventory, there is only about two weeks of supply (0.53 months) overall, which indicates an extremely disproportionate market as a balanced market would boast 4-6 months of inventory.
In addition, with remote working increasingly becoming the new norm, it is anticipated that young urban professionals and city-based families will continue to relocate out of city centers and into communities that are more of lifestyle/destination markets. This means there is great reason to believe that the current housing market frenzy in surrounding counties of the Seattle area, such as Skagit and Whatcom county, will continue to see an influx of buyers.
Professionals in the real estate landscape agree that there will be a continued strong demand from buyers, which means prices will continue to rise, which is great for sellers, but raises concern about affordability for buyers. Advice for buyers would be to have patience and prepare for multiple offer situations. It is advised that buyers add value to their offers in ways other than price, which your Brown McMillen agent can help you figure out!
For more information about buying and selling your home, give us a call at Brown McMillen, 360-757-6013. We can’t wait to hear from you!