It seems like every time you turn on the news or open the paper, there is another story about the housing market “crashing” or the “bubble bursting”. But is it really as dire as they make it sound?
Some buyers may have been scared off over the past few months because of the horror stories they saw on the news or in the paper. But it looks like buyers are starting to realize that the Puget Sound region is much more stable than inflammatory news reports would suggest.
The key to stability in the residential real estate market is balance, where balance is about a six month supply (or inventory) of homes available on the market at any given time. In Washington there is currently about a 4 month supply. In many states where prices are slumping, the inventory is about 11 months.
Northwest Multiple Listing Service (NWMLS) director Joe Spencer described current conditions as the “Buy Zone” and “the perfect buyer’s market.” Looking at the housing market graphically over the past 25 years, it’s evident there are periods when conditions make it the perfect time to buy a home, he explained. “The numbers show the housing market typically has a six to seven year boom, followed by a two year decline. This decline represents an ideal opportunity to buy because homes can be purchased at a premium value – and that’s exactly what we’re experiencing in the Puget Sound region,” Spencer stated. “Combine this with low interest rates and a healthy supply of homes to choose from and you have yourself the perfect buyer’s market,” he added.
But that doesn’t mean it is bad news for sellers. Again, let’s look at the statistics…. According to the most recent data from the NWMLS, Pierce County sellers can expect a reasonable amount of appreciation for their homes, with Year-to-Date sales averaging about 4% more than sales last year. It isn’t the double digit appreciation that some home owners had come to expect, but it is still very reasonable, and certainly not cause for alarm. Sellers just need to be realistic when they list their homes, also keeping in mind that the average home is on the market in Pierce County for 80 days before it sells, as compared to an average of only 57 days a year ago. Patience and a reasonable appreciation expectation are key for anyone selling their home in today’s market.
Curious to find out what your home is worth? Then follow these links to have one of our team’s experts calculate the value of your Sumner Real Estate or your Pierce County Real Estate. We’ll prepare a thorough, up-to-the-minute market analysis report of your home and email it to you within 24 hours.
Or do you want to take advantage of this great buyer’s market? Well, search the same database local realtors use, with no cost or obligation: Free Pierce County Real Estate Search.
