Sellers are embracing the concept of moderation when setting prices!
According to Northwest Multiple Listing Service (NWMLS), Homebuyers around Washington state are making their way back to the market. They are hoping to take advantage of improving inventory, attractive interest rates, and more approachable sellers.
Moderating sales prices of homes in Washington State are caused by a year-over-year improvement in the volume of new listings and total inventory. There was robust activity in January of this year. However, the number of actual sales was a little less than last year. All indications are that strong activity will persist in all counties of the State. Some prospective buyers sat out the second half of 2018. Others were pushed to the sidelines during last year’s heated market. These folks are finding better buying conditions now.
Is affordability improving?
Some believe that affordability in areas close to the job centers is improving. King County saw a slight drop in home prices. This drop in prices will be welcome news to many millennials. For many, affordability remains a key concern. It is a crucial issue for 72 percent of millennial renters, according to a survey by Apartment List.
Affordability is a long-term concern. Some believe that it might cause the homebuyer’s pool to shrink, in the long run. The director of the Washington Center for Real Estate Research has said: “The picture for first-time buyer affordability in the long term for the region is not bright for potential homeowners unless changes in the housing supply framework throughout the area are addressed soon.”
This spring, buyers are likely to see fewer bidding wars.
Buyers will see lower price growth and less competition. It is reasonable to think that in the coming months, the market will reflect the following:
Prices will not skyrocket.
The last few years saw massive increases in home prices. This phenomenon was especially true during the busy spring buying season. This year price growth is slower in most markets.
There will be fewer bidding wars.
There will be a few hotter markets. Most buyers will enjoy a slower-paced market and a little more leverage than in years past. When there is a bidding war, it will be more like a skirmish. The dollar amount of ‘over-the-list-price’ will be less than in recent years.
Sellers might have to make some concessions.
Mortgage rates may rise. This will cause fewer buyers to get in on the market. The sellers will need to do more to get their attention. This change could mean more concessions and more room for negotiations.
Today 93% of buyers who are younger than 36 years of age, use the internet for a Sell My Eastside home search before talking to an agent. Only those over the age of 51 are likely to first speak to an agent. Still, even now, 90% of home-buying Millennials, Gen X’ers, and young Boomers buy a home with the help of an agent in the end.
Having a knowledgeable real estate broker on your side has always been crucial to be able to navigate a home acquisition or sale effectively. It will be even more essential during 2019’s changing housing market to have an expert to provide crucial guidance and protect your interest. Take a look at the service we offer for sellers.
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