A Lack of Homes are Stirring up the Market
A Lack of Housing is REALLY stirring up the market for home buyers. But, good for sellers.
Five years into recovery and the lack of inventory is one of the largest issues pertaining to the current housing market. Home buyers are feeling the need to buy come spring time, but sellers are still not selling, making it troubling to find affordable housing.
Here are some points on the issue:
- At the end of February, there were 9,091 active listings in the Northwest MLS system, which encompasses 23 counties. That represents a drop of nearly 25 percent from the year-ago total of 12,107. - NWMLS
- Both King and Snohomish County had less than one month of supply. Area-wide there was about 1.7 months of supply. (In general, four-to-six months of supply is considered balanced.) - NWMLS
- “We are in a time of short supply, which is great news for sellers because they will likely be faced with multiple offers due to the little inventory out there…Buyers will be up against a lot of other people and against a short supply of existing homes.” - Ralph McLaughlin, Chief Economist with Trulia
- “First-time buyers in high demand areas continue to encounter instances where their offer is trumped by cash buyers and investors. Without a much-needed boost in new and existing-homes for sale in their price range, their path to homeownership will remain an uphill climb.” - Lawrence Yun, Chief Economist with NAR
- Even though inventory is down and buying a home is more difficult and stressful, in most parts of the country, it is still cheaper to buy a home than rent over a 5-year period. And it gets cheaper after that, McLaughlin explained. - Ralph McLaughlin, Chief Economist with Trulia
What does this mean for you?
- If you're currently on a house hunt, make sure you're pre approved and bearing all necessary documents and funds. Be ready to act fast on a home, work with your realtor for the STRONGEST offer possible, and most importantly BE PATIENT.
- If you're a homeowner and considering selling- now may be the time. Especially in Washington state, where home prices are up over 10% from last year.
At the end of the day- the best time to buy or sell is when you feel most comfortable. Sure signs are showing that it's a SELLERS market, especially in Western Washington, with no signs of slowing down.
Thank you for reading! If you have any questions- please feel free to reach out.
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