From Lennox’s Blog
This is a unique time in the real estate market. Here are the market facts for the Puget Sound region
Strong Sales Activity Being Driven by Local Home Buyer Surge
Driven by the return of local home buyers, a positive market psychology has returned. Low inventory, adjusted prices and the historically low interest rates combined with improving job growth have created a positive market for local home buyers. Starting in 2010 an elevated level of residential investors seized the opportunity to purchase homes and helped reestablish the market by bringing sales activity back to a healthy level. By November 2011, we saw the return of the local home buyer to the marketplace and as market activity began to heat up, the level of available inventory could not sustain the demand. This brings us to Spring 2012 where there is a shortage of inventory available to a backlog of buyers looking to take advantage of the superb market conditions.
Shortage of Inventory will Continue
It is foreseeable that this shortage of inventory will continue for some time. With both residential investors and local home buyers competing in the market place for a restricted amount of homes the supply will not find much relief. The restriction of supply is being caused by several factors; underwater sellers not able to bring their home on the market and sellers with equity thinking they can’t currently sell or waiting for prices to rise.
Stabilizing Prices and Multiple Offers
The shortage of inventory and the flood of local home buyers to the market falls in line with the classic principals of supply and demand, which is why we are now seeing a slow but steady stabilization and the beginning of price increases, as is evidenced by the multiple offer situations. 40% of new properties brought on the market are selling in the first 30 days. Compare this to the Fall of 2010 where only 40% were selling within 6 months. This is happening across the board through the mid-price ranges as well as the upper end close to job centers.
If you are not “Buyer Ready” you may not get a home in today’s market
Buyers who want to win their dream home, in these multiple offer situations, need to come to the table prepared. There are three important things a buyer can do to be “buyer ready.” The first is to have a detailed market review consultation with your trusted broker. The second is to get pre-approved by a lender. The third is to get in the flow of information. Sign up to receive email notifications when new properties come on the market within your desired market area and price range. You can also download a mobile app on your smart phone which will let you look up property information on the go.