Is the market slowing down? Yes. Is it a good time to be a buyer? Yes. Is the world as we know it crumbling around us? No.
To put things in perspective, all the talk of a major slow down amounts to the following in King County:
- The average list to sale price ratio is at about 99.5% versus 100% or more. On a $600,000 home that means a buyer may purchase it for $597,000 (0.5% below list price).
- The current inventory rates are higher than they have been in years. A “normal” market has a six month supply of homes. We are currently sitting at a 3 month supply which is up from a 1 month supply. Months of supply means how long it would take to sell all the homes if no new homes hit the market.
- Single family home prices have increased 9.5% and condos 14.1% in 2018. September and October sale prices were below average for the year. But, keep in mind the increased inventory at that time.
- As the uptick in inventory from late summer (remember that 3 month supply of homes?) is absorbed we will likely see another shift. Late fall is not an ideal list time and fewer new listings will hit the market.
As a seller in this market it is imperative you work with an experienced broker who knows how to prepare and market your home. The added edge of a premier listing will help you sell faster and for the best terms.
As a buyer, navigating appropriate offer strategies, loan options, and even stretching yourself to possibly obtain a home previously out of your range are all topics to discuss with your broker.
Call me today for more tailored information!