A Seller’s Market Buyers Can Love

by Coldwell Banker Evergreen Olympic Realty, Inc. on May 15, 2017

We are in a unique place in today’s housing market. Amidst the strongest seller’s market on record, there is great news for buyers, too. Purchasing a home is much more than just the investment, but we all would like to know we are also making a smart financial move.

Even with a great many homes coming to market, buyers still outnumber sellers. The result is swiftly rising home prices. Today’s buyers are paying on average 11.4% more for a home than a year ago. It can make one wonder if prices are peaking.  There are several reasons buyers might look forward with continued optimism about rising prices.

  1. Pent-up Demand. Sales are at an all-time high and increasing. The last recession created huge pent up demand.  It will take many years to fully unleash.
  2. Still Affordable. Even though prices rose 11.4% over last year, they’re still below historic trend lines. Combined with near record-low mortgage rates, there is great affordability in our area.  Compared to surrounding counties to the north, our market is much more affordable. This will keep in-bound migration very strong.
  3. Lack of new construction. Our county is one of the fastest growing in Washington state and the United States. Construction of new housing for these in-bound residents is not keeping up.  In fact, we are about 600-700 units short each year. It takes years to bring a new home community to market, and there is no sign that the pace of building will catch up any time soon. As a result, demand should outpace supply for many more years.

Actual outcomes are impossible to hit precisely, but these fundamental market observations suggest this is truly a unique point in time – when both buyers and sellers benefit from a seller’s market.

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