A promising future is on the horizon for new homebuyers! With sizable increases in new listings compared to this time last year there will finally be some buyer relief in store for the upcoming season.
Listing Numbers vs. Overall Market Activity
It is important to note that listing numbers do not always reflect actual overall activity. While there was an increase in listings – the market still remains hot and the velocity in which active listings shift to pending status is still above average. For example, at month end, April’s active listings stood at 5,616, yet during the month, member-brokers added 12,043 new listings of homes and condos. So, while there is a spike in new listings, pending sales continue to surge and keep inventory depleted.
The Backlog of Home Buyers
Historically, there is always an uptick in available listings in May which continues throughout the summer. Considering there is such a large backlog of prospective home buyers, the market will stay in a state of instant response for each new listing. Another way to illustrate this fact is that even with the increase in listings, only nine counties have more than one month’s supply of inventory, and areawide, there is only 0.64 months of inventory on average. This is a significantly low number as many analysts consider a balanced market to be in the 4-6 month range. In Skagit County, we have approximately 0.87 months worth of inventory as of May 5, 2021.
Condominiums are Still an Option
While condo inventory is still tight at 0.88 months of supply, they do pose an accessible alternative to single-family homes on the market. Research from CoreLogic shows that condos are increasingly popular with millennials with 47% of all condo mortgage applications submitted by millennials in 2019. In Skagit County there were only a total of 4 active condo listings at the end of April 2021, with 14 pending sales.
So, Is This Good News for Prospective Home Buyers?
While the market may still be more competitive than most real estate brokers have seen in their lifetime, it’s safe to say that there is hope on the horizon! If you’re interested in learning more about the market or buying/selling your home, we encourage you to reach out to our industry-leading team of real estate brokers. With fifty years of experience guiding, advocating, and protecting clients through the buying and selling process, Brown McMillen Real Estate brokers can help you navigate this competitive market and achieve your goals. Give us a call at 360-757-6013.