Soggy Weather, Hot Real Estate Market!

Soggy weather and the onset of the holidays did not deter thousands of home buyers and sellers at the end of 2021.  Reports from the NWMLS(Northwest MLS) show numbers for new listing, pending sales, and closed sales were comparable to year-ago totals, while prices rose more than 15 percent.  “It is normal for there to be a seasonal slowdown, which normally allows serious buyers to gain an advantage over casual buyers who take a break during the holidays.  This year, neither class of buyers have taken the sideline,” commented Frank Hawkins, president of our very own Hawkins-Poe, Inc. “The difference this year is that there are fears of increasing interest rates, which is keeping the demands high and the pressure on all types of buyers,” reported Hawkins.

We are seeing the waived inspections and funds committed upfront in the event of a low appraisal are not quite as common, but they are still very present and the sellers continue to have the upper hand.

With inventory at such low numbers, it does not look like that is going to change anytime soon.  Twenty of the 26 counties in the NWMLS report adding more new listings during November than a year ago, but with demand outpacing supply, the inventory is meager across the board.  Area-wide there were 4,621 active listings of single-family homes and condos at month-end, down nearly 29% from a year ago when there were 6,505 listings. When this data was gathered at month-end it amounted to about two weeks of supply.  Five counties had even less supply and Pierce was one of them: Snohomish, Thurston, King, Clark, and Pierce.

We use the term "months of supply" in real estate to tell us how much inventory of homes for sale we have on the market.  The months of supply is the time it would take for all the current inventory to sell if it all sold at the current rate without new inventory coming on the market.  Gig Harbor currently has 33 active listings and 39 sold listings… which equates to about 6 days of inventory, and an average sales price of $900,633.  We are selling more than we have, if you are on the fence about selling here is the data to indicate the time is now!

What’s normal you may ask? A 6-month supply is the benchmark for a balanced market. Less than 6 months of supply favors the sellers because there are fewer choices for the buyer. More than 6 months favors the buyers and leads to lower prices.  So, as you can see we are most definitely favoring the sellers and due to demand it will be a while before we see that balanced market return.

This can be a weary time for buyers and many think by sitting it out they’ll catch the prices when they come back down.  But buyer beware on that because although the forecasts do show a slowing of the remarkable price increases from the 2021 numbers:

King County 16.8%
Kitsap County 15.2%
Pierce County 19.6%
Mason County 25.5%
Entire MLS 20.2%

With a trend toward a more moderate market and return to balance, still with a projected 6-8% increase in average sales price for homes in 2022.  So much to take in and consider when weighing ones options of buying, selling, or waiting.  One thing we do know is that we love talking data and helping our family, friends, clients, and newcomers navigate their unique situations, as no two are the same… with the goal of the best outcome both personally and financially.  In these times we know where you live matters and so does who you work with!