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May 2021 Housing Market Update JBLM Region

Here is the latest analyzed & detailed housing market update for Pierce and Thurston Counties
surrounding JBLM. Data is personally analyzed with relevant topics to follow.
Contact us anytime with questions and or to assist in your real estate journey.

Table of contents:

  • Pierce Data.
  • Thurston Data.
  • Why are prices on the rise so much?
  • Bidding Wars!!!
  • Is there a housing bubble? Chief Economist Mathew Gardner Explains.
  • Bidding war Summery.
  • Seller Takeaways.
  • Buyer takeaways.
  • Our sales and experience for 2020.

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Why are prices on the rise so much?

Both Pierce and Thurston county are still in high demand (sellers Market) experiencing low inventory shortages
as the main culprit with many variables. Here are some of the common reasons. Read here for more details 

1. Value in our Region

Largest population moves are from King County residents moving south to get out of Seattle (large migrations out of large cities) and Californians are moving north both taking High homes sale equity gains plus high paying work from home jobs) and we are the stopping ground with more reasonable affordable homes in comparison.

 

Average Prices in March

California $759k

Thurston County $467k

Pierce County $523k

King County $1.08m

 

2. Building Costs Soar:

Cost to build as you have heard has skyrocketed. Below is a visual chart explaining wood alone to put it into perspective.

 

The cost of Lumber and how it effects building –

Learn More Here – Visual Capitalist

3. Generational Growth

Which in turn makes New Building Construction is not keeping up with the new generations population growth and annual change declining. Less homes being built more demand in age group alone.

Source

Washington
Population 1900-2020

 

So What is this Causing?

 

Bidding Wars!!!

Bidding wars are almost certain as of today.

Personally our team has experienced for leading desired homes and or properly priced homes with most activity can see:

  • Offers $20-$75k over asking
  • Escalations an additional $30-$60k over that
  • Money on low appraisals $5-$50k
  • Waived inspections, HOA review, and a few other addendums.

But note these are for properties that experience more then 3+ offers. Some agents are still missing the market which allows for more time on market and opportunities to jump in with less extremes. typically this falls in the compromise and potential homes. Buyers and sellers see below summery.

 

Is this leading to a housing bubble?

Many valid concerns and media hype have been written that a bubble is highly possible, but chief economist Mathew Gardner in this video outlines why he disagrees with headlines and explains why we are likely not in any housing bubble. Click Here to view

You can find more about what he discussed here

Notable Articles:

Forbes: More housing Supply is Finally on the Horizon

Zillow: Could more homes be on the horizon?

Everyone Is a Realtor!!

 COVID and a booming housing market have fueled a record number of Realtors…Read More

Hiring a professional team, full time, experienced, and knowledgeable agents matter in any market. I have been a full time realtor for 10 years and we have the numbers and reviews to back it. See below

Soldiers Agents Inc. 2021 stats – Verify Here

  • 17 Closed sales, 6 pending sales

  • $18,000,000 Volume sales

  • 4 Average Days on market

  • 5% Average over list price sold

 

Sellers:

You have been riding a equitable bull for quite some time. Year over year you have gained amazing appreciation. Rental sales are on the rise and indicators suggest the incline will start to slow down in the coming years and potently more inventory. Everyone is a realtor nowadays. Putting a sign in is easy but pricing is still key and you need experience with how to handle proper pricing, handling objections from appraisers, and catching /foreseeing issues with price, buyers financing, and much more. My 9 point CMA does just that from the start. You don’t want to list at market value and get 20 offers. You want to list above that (situation dependent) and get 4-6 substantial, qualified, secure offers.

  • Quality/approved buyers
  • Money on low appraisal
  • Confidence in buyer and agent/lender to close
  • Expectations set from the start.

 

Buyers:

Even in this market you are still able to gain great equity as you can see month over month year over year. We understand, feel, and live the frustrations daily from all of our buyers and associates. We are writing on average 4-7 deals a week. Just know there is nothing you or we are doing wrong as long as you are taking our advice we will get you into a home. Not much we can do against deep pockets from the North and south. You still have phenomenal interest rates. The Keys to getting into a home are

  • Patience
  • Persistence
  • See Potential in homes you wouldn’t often look at.
  • Compromise where you can.
  • Save money to use for earnest money, money on low appraisal, etc. for stronger offers
  • Don’t get discouraged

 

 

Summery:

There appears to be no housing bubble. This last week of May we have seen a spike in inventory and price reductions, more days on market . This indicates at the very least summer inventory is kicking off. But this could also be due to many factors like rentals being sold due to eviction moratoriums, early retirements and people leaving the state., etc. Covid delayed summer inventory last year so that slump is hard to determine this summers outlook. Buyers and sellers need strong advocates in this market. Agents who analyze the data, get deals and offers accepted, coordinate and plan accordingly. Because as you learned above things are unpredictable. The market is robust still in a sellers market and that time may continue or we may start to see some multiple point efforts to gain equities and watch markets change in the coming months due to exodus, inflation, rates, and more influences.

As always contact us anytime for questions, strategy, and or to get started!

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