This is CJ’s Market Update Blog number three coming to you from me, CJ Stewart with the key2see Team! My focus is on the ever-changing real estate market in Pierce County. You can rely on this blog to show you our market's statistics and developing economical and housing information as it pertains to buying or selling a home in our wonderful area.
- The average sales price in the last twenty-five days has increased by just over $18,000 in Pierce County! This is due to the continued low interest rates, appreciating home values, and low inventory. Personally I have noticed that competition for Buyers in all price points has become even more intense in the last few weeks with homes receiving sometimes as many as 50 offers! Homes selling for anywhere between $20,000-300,000 over asking price (depending on the price point) has become the new normal.
- The highest sales price of $1,950,000 of a home in Pierce Country this month came from a private corner of Snag Island on Lake Tapps. Arguably one of the most desirable lots on the Lake, this property had nearly 600 feet of West facing waterfront, a private boat launch and dock all situated on nearly three acres of property. Fox Island had the next highest sales price of $1,850,000 for a South west facing waterfront home with a dock.
- The average days on market dropped by four days! This is undoubtedly due to the contined low amount of inventory and increased number of Buyers. Buying competition is at an all time high right now so make sure you choose a Realtor with a great reputation for success in this market climate.
*What its like to be a Seller in our current market*
Buyers and Sellers continue their charge whether they are growing out of their starter home and want more space, they’re retiring, or they have new employment in a new area. Not to mention the way some REALTORS (including me) have adapted to this Covid environment and offer showings via Zoom or other virtual platforms.
Without question, it is the low inventory that is making the Pierce County market continue to be so competitive. In a healthy real estate market, Pierce County would have somewhere between five and seven months’ worth of inventory. (Meaning that in a healthy market we were to put a halt to new listings, our current homes available for sale would all be sold within five to seven months). Currently Pierce Country has .8 months of inventory. Yes—8 with a decimal point before it!
The current inventory here and surrounding areas is extremely tight. That being said- looking forward, the Pierce County real estate market looks as strong as it has been for the last few years. Obviously supply and demand is leaning in the way of the Sellers but with interest rates so low and continued property value appreciation, Buyers are able to make out great as well for the long and short term thanks to incredible appreciation percentages.
Side Note- We have clients who bought in 2019, did a few cosmetic updates over the past 2 years, and recently got transferred out of state for work so we are now listing their home. We are expecting it to sell if for more than a 25% higher amount than what they purchased it for just less than 2 years ago.
Short and sweet for the Sellers: The odds are high that you will have little-to-no competition when putting your house on the market and there will be a high number of potential Buyers for your home resulting in multiple offers, little-to-no contingencies, and a desirable final sales price.
Short and bittersweet for Buyers: For Gig Harbor, Tacoma, and surrounding areas, It's cut-thorat out there! But inventory is increasing a tad due to the time of year. Interest rates are at a historic low and we may never see them this low again! Homes continue to appreciate at around 1% of the sales price per month! So there is still a good chance you can see a positive return on your investment within the first several months of owning your home!! - Even more so if you can do some easy cosmetic updating.