Ever since March 2020, the housing market has been incredibly active, with inventory being depleted the moment homes come on the market. In this blog, we are going to give you an overview of where the real estate market stands as of April 2021, and our advice if you are looking to buy or sell your home.
How Are New Listings Performing on the Market?
According to the NWMLS, 10,562 new listings were added to the inventory during March — the highest volume since September when they added 11,210 properties to the selection. Even with this seemingly large number of listings being added, demand has continued to outstrip supply and inventory remains low. Double-digit price hikes on these new listings were also wide-spread across all 26 counties encompassed by the NWMLS as buyers continued to place competitive bids. During March in Skagit County, there were 208 new listings, creating a little over a half-month’s worth of inventory. That is down nearly 66% from the amount of inventory this time last year when months of inventory was at 1.98.
What Does Median Pricing Look Like Right Now?
Median prices system-wide surged 19.5% compared to a year ago. The median price for the 7,803 sales that closed during March was $548,199; a year ago it was $458,900. Prices rose in every county served by NWMLS, with seven counties reporting YOY price hikes of 25% or more. Last month’s median price on closed sales of single family homes and condos (combined) was up 7% from February’s figure of $512,000. In Skagit County, the median price on a closed sale of single family homes and condos was $485,550, slightly less than the NWMLS overall median closing price.
What is the Housing Market Projected to Look Like as We Enter the Spring Season?
Optimism is in the air for the real estate market as we head into the spring season. As businesses begin to reopen and COVID restrictions begin to lift and change, we are navigating how the real estate landscape will alter with these state-wide and even nation-wide changes. What is not projected to change, though, is the urgency of buyers and houses flying off the market at lightning speeds. This urgency can mostly be attributed to rising mortgage rates and the fear that rates are very unlikely to drop again as we move through the year, which is a safe assumption to make. Houses that go on the market will likely see 30 showings and half a dozen offers during the short time a home is on the market due to this pent up demand and urgency to buy.
Who is Making All These Housing Purchases?
According to the NWMLS more than 40% of U.S. home purchases in 2020 were by first-time buyers. This is due to the fact that millennials, who in pre-pandemic days would spend excess funds on travel and entertainment, were curtailed by COVID enabling them to save and make these large, first-time purchases. Particularly in the greater-Seattle area, a lot of this pressure could be coming from the migration of tech workers to the area, as a new report from CBRE that shows the Seattle/Bellevue region now ranks #1 in technology office space leases, eclipsing San Francisco for the first time since 2013. And with working remotely full-time and part-time having become the new normal, outlying counties, such as Skagit County, are seeing some of these tech employees seeking outside the bustle of the city to settle down.
What Do You Recommend For Those Looking to Buy or Sell a Home?
Here at Brown McMillen, we are a team of highly-skilled brokers who are looking to make successful transactions on behalf of our clients. For those looking to buy, we will not only help you find the home of your dreams, but we also give your strategic ways to add value to your offer, without raising your offering price. This could be offering a shorter contingency, having closing date flexibility, paying the difference between appraised and sales price, amongst other tactics that your real estate professional will discuss more in-depth with you when the time comes.
For those looking to sell… now’s your time! With the competitiveness of the market not looking to slow, you are likely to receive numerous offers and be able to negotiate terms that suit you best! Reach out to our team at 360-757-6013 to see how we can help you achieve your real estate goals!.