Wednesday, January 18, 2012

A Fresh Look at Our Current Market

There seems to be a misunderstanding of what is going on in our Seattle area market.  Buyers still feel in control, citing the volume of short sales and foreclosures.  What they have heard on the national news is not necessarily what is happening in our neck of the woods.  From 2010 to 2011, we have seen a decrease in the number of foreclosure filings as distressed homes have been sold off.  Less than 12% of King County homeowners are underwater on their mortgages.  Since our Eastside sales prices are down about 30% from the glory days of 2006-2007, sellers have not been eager to list their homes.  This has kept our inventories low.  In fact, King County currently is at half of the inventory we had in 2008 and the number of pending single family residences in December 2011 was at the highest level since 2006.  In short:  we are selling off the homes on the market and we are not replacing them with new listings.  The old rules of supply and demand hold true:  if the supply goes down, then prices go up.  Since we have a critical under supply of homes in Seattle and especially on the Eastside, prices should start to creep up. 
Buyers who see a home and think they will take a look at it in a week or so are likely to find they will not have the opportunity to see the inside of that home as it will likely be pending.  I recently listed a home in the Bridle Trails neighborhood in Bellevue and on the third day had three full price offers.  I'm sure many other buyers were looking forward to seeing that home the following weekend, but they missed their opportunity.

Yes folks, we now have less than a three month supply of homes to sell in King County.  A balanced market which favors neither buyers nor sellers is generally considered to be a five month supply. Sellers, this could be your year to see a turnaround.  And buyers, get ready for a fast and furious 2012....we are officially at the bottom of the market:  the bell has rung, the interest rates are fantastic and if you want to buy a home: 2012 is your year to buy!  Call me if you want to start searching for your next home: 206.383.3119.  It would be my pleasure to help you find the home of your dreams.

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