Changing Market Perspective
In this episode, we would like to put some perspective on the real estate market and help you see that the overall picture is still quite good. The latest Seattle Times article headlined with “Average Seattle-area homes selling below list price for first time in 4 years.”
It’s true that homes are now selling for less than asking price across our Seattle area region – and that is a good thing. Some, but not all are selling for less than asking. Some are selling for the asking price, and some are still selling above asking price – just not very often.
Yes, the market has softened, but it has only softened to the point that we would now call this a “balanced” market, rather than the “Seller’s” market that it has been for several years. This is a very good thing. A balanced market is when there are enough homes on the market to allow for 3 – 6 months of remaining inventory at the current rate of purchasing. Below 3 months, we consider it a “Seller’s” market, above 6 months, we consider it a “Buyer’s” market.
The inventory levels across the region generally range from a low of 2 months to just under 4 months. Homes are still selling. When we compile our stats every Monday morning, we find that anywhere from 80 to 125 homes have just gone pending in the last 7 days on the Eastside alone. And Seattle continues strong as well – despite the news coverage that tends to sensationalize and put a negative spin on the market.
Homes are selling. Not with multiple offers, and maybe not even at full asking price, but they are still selling. Isn’t this how real estate used to be?
Our market needed correction and the slowdown has accomplished that. Buyers can breathe for the first time in several years, and they are. But they are still buying. The market is alive and well – even give the seasonal slowdown that we normally experience this time of the year.