At the start of 2012, there are less than 8000 homes for sale in King County! Compare this number to the start of the last three years:
- 2011: 10,008 homes for sale
- 2010: 9726 homes for sale
- 2009: 11,363 homes for sale
The old law of supply and demand is at work here and is starting to favor sellers more than it has for years. There’s a 3.6 months supply of homes for sale in King County. This means there’s a balanced market between buyers and sellers with the market tipping towards the sellers. (Less than 3 months of inventory indicates a sellers market.)
On Seattle’s Eastside, the market is looking really strong, particularly around the Microsoft area of East Bellevue and Redmond. The number of homes for sale has dropped dramatically.
What should buyers and sellers expect in the first quarter of 2012 on Seattle’s eastside?
Fabulous interest rates.
A more positive real estate market.
The market will continue to be affected by short sales and foreclosures.
Home prices are not up nor will they go up. There is no indication on the immediate horizon that indicates anything about price increases. On the flip side, the lack of supply of homes for sale helps to stabilize the market and prices. Fewer homes means more competition, which helps pricing. The real estate market will vary neighborhood by neighborhood. One size does not fit all.
Location matters. Homes close to economic centers that offer a good commute, good schools, and good amenities will be more in demand.
Condition matters. Homes should go on the market in the best possible condition to command the best price.
Some home sales will be good deals depending on the available competition, the condition of the home, and the seller’s motivation.
Some homes will sell for full price, in a matter of days, and with multiple offers This, too, will depend on the same factors mentioned in my previous statement.
It is important to know your area. Buyers and sellers should both be aware of the competition, pricing, and condition of nearby homes to determine the value of a specific home.
Homes need to be priced right or they will not sell. I heard a seller say the other day, “I’m not going to give away the farm.” If you, as a home seller, have far more money into your home than it’s worth and you have no interest or are financially unable to price your home to meet the market, then this is not be the time to sell your home.
Gee, it sounds like a normal real estate market to me! What do you see happening in your market place?