The Housing Market is Starting to Shift!
Here is the latest Housing market update. You are about to hear and read articles like these:
The data below direct from the MLS reflecting May to June does also show this slight shift, next months data is going to continue this trend even more so simply based on historical Norms(pre-covid- chart above), but my personal activity in listing appointments has shot up. All the reports I have done for them have shown even more inventory(competition), more days on market and price reductions on the rise. My Pears are also confirming this. We are certainly seeing a shift in the housing market. To be clear it is still a sellers’ market But this is falling in line with summer norms pre covid. Last year during the pandemic we flatlined mostly which cause more demand, less building, etc.
The chart below will show you summer months are the peak season for inventory which we did not get last year and likely the cause of the influx this year. I feel we are starting to shift back this direction. I’m not as of yet seeing home price values dropping rather we are seeing less month over month gains. Appreciation will slow down along with the intensity of bidding wars. I anticipate next months report to have steeper numbers. and next year if new construction picks up this trend likely will continue. Thurston county’s data for May to June did however show more average sales price increase and month over month appreciation. It did not show the same signs as Pierce and King. However there is always a ripple effect from king county to surrounding counties and I fully anticipate Thurston to be on the same trend next month when the numbers come out then.
Now here are the latest number for Pierce and Thurston County
Buyers: You are finally getting some relief but it also depends on your price point and that is not to say certain homes are still getting bidding wars. Summer months are still ideal to buy. You still need to understand we are in a sellers’ market and this summers trend is very lily only temporary. It will still take years to see a neutral or buyers’ market depending on new construction. You need to:
- Be Patience
- Be Persistence
- See Potential in homes you would not often look at. Remember no house ever is a home until you make it one.
- Compromise where you can.
- Save money to use for earnest money, money on low appraisal, etc. for stronger offers.
- Do not get discouraged.
- And remember interest rates are still all-time lows and appreciation is still high so don’t wait to continue for lower values rather look at the loss of equity you could gain over a year. See below.
Sellers: You are still in the driver seat. It is still a Sellers’ market, but proper pricing will be very important as the markets start to shift slightly. Before any 1 of the 10,000+ realtors can slap a listing together but for a smooth systematic, professional and profitable close without resistance you need your agent to be able to
- Have Experience and expertise in changing markets.
- Price properly by understand the data, new and sold listings on how to approach pricing.
- Conduct robust marketing
- Know and prove their numbers and client satisfaction.
Summery: Overall yes we are seeing an increase in inventory but this falls into the summer season norm. Buyers are getting some breathing room, and sellers you are still in a peak market technically. This may or may not be signs of things to come but it is agreed that the intensity should die down over the years. Meaning appreciation levels will taper off. Experts agree this is not a housing bubble. You can find out more about that in our previous market update.
Cyrus Bonnet | Broker – Veteran | CEO & Founder of Soldiers Agents Inc. | Windermere | JBLM – Pierce & Thurston County
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