Today I ran a statewide Inventory Count on, ONLY, single family residential properties and, ONLY, for the last 30 days.
Amazing #s and values:
Houses SOLD = 6,100 with an, average, sales price of $413,190
Houses PENDING = 4,491 at an, average, price of $412,265
Active (Currently available for sale) Inventory = 18,913
Of course, this report will change/update throughout the day.
So, the trend has been houses selling at, or above, list price....in areas of Seattle/surround.
Based on this report, values are leveling out.
In my opinion, values are, always, determined by the Buyers - because they're the ones putting up the $.
Many houses are, still, sitting on the market - which suggests there's enough Sellers out there who believe their house is worth more than Buyers are willing to pay.
As the Fed is likely to raise rates this coming month, it's going to affect the market - for sure.
IF the rate does increase, then the amount of house Buyers can afford will decrease - leaving Sellers with a diminished demographic the higher their list price.
Sellers have been enjoying a market that favors them, but that will change - IF rates increase.
Every market is based upon the cost of $$.
When rates are low, Buyers can afford more house and it's not unusual to see bidding wars going on - to the result of houses selling for 10s of thousands of $$ more than what they were listed at.
As rates increase, many Buyers are forced to limit themselves and Sellers who want/need to sell are forced to accommodate willing and able Buyers, sit on the market for longer periods of time OR to take their property off of the market.
This IS normal.
In looking at random sales - in, both, Seattle and outlying areas, I'm seeing houses selling closer to list/not as many selling far above - like what I was seeing over the previous 90 days - despite the fact that rates have not, yet, increased.
This is ok AND healthy - because values cannot continue to climb, as it's not sustainable.
So, an improved market is a healthy market and health relates to being balanced.
While nobody wants to see the Fed increase the rate, fact is it contributes to market stabilization, which is our best assurance that the market can remain in healthy ranges.
Buyers - best to buy asap !
Talk soon ?
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