SEATTLE MARKET SHIFT? BIG JUMP IN HOUSING INVENTORY
King County inventory has jumped over 100% since MARCH. Are we experiencing some sort of shift? I explain...
Inventory has absolutely SKY ROCKETED as of late. If you're a buyer, seller, or a broker yourself - you're probably experiencing a bit of a "shift." We're seeing less and less of the multiple offers and more and more of homes sitting. This is even happening in "hot price points" under $1m in King County.
Let's look at some numbers:
- Single family home inventory is up 101% since March
- Condo inventory is up over 95% since March
- We have the most amount of inventory since September of 2016
- We have the longest supply of inventory since September of 2016
- Inventory is up more than 40% since last year for single family homes and over 70% for condos
These numbers are daunting, but it's really nothing to be worried about. We still only have ~2 months of inventory and in a balanced market, we're at 6! We're still in a sellers market and our inventory is still SIGNIFICANTLY lower than what it's been in the past.
As you can see from the chart below, the inventory spike is SEASONAL and the inventory will start to dip down here shortly. That's what the numbers tell us.
Our unemployment rate is still EXTREMELY low in the area, our population is still booming, and this will continue to drive up demand for housing. Simply because everybody needs a place to live, right?
So, what should you do if you're a buyer?
It may be time to take advantage of the additional inventory. Get your new pre approval and start shopping. You're going to have a LOT more leverage than you did when inventory was tight earlier this year and last year. Plus, interest rates are slated to continue to rise into the 5%'s, so take advantage of it while you can. Interest rates can affect your purchasing power SIGNIFICANTLY. Inventory will dip down (as you see above), so your options are open.
So, what should you do if you're a seller?
Pricing, presentation, and pricing. Yes. Gone are the days of putting a sign in your yard and getting buyers. Price it correctly, present it correctly. Hire a professional that's going to market your property in order for it to stand out and be the most in demand home on their tour. We still have buyers out there, you just need to do the leg work. Oh, and price it right. Work with your agent to ensure your pricing isn't too ambitious, as it WILL sit on the market.
All in all, this spike is seasonal and our job market/population growth is too good for this to sustain. Seasonally, this is what happens. If you're a buyer, get out there and shop! If you're a seller, work closely with your agent or a trusted professional to help get the job done from presentation, pricing, and marketing.
Questions? Let me know.