Multiple Offers are Back?

We are seeing some healthy late spring selling in our local area, the first in a couple of years that has not been propped up by government intervention. We’ve been building momentum for a couple of months as inventories have been low and with interest rates back to the all time low of last November driving the buyers out in force which has led to a competitive market place for buyers. The new listings coming on that are aggressively priced, in great condition and presented well are selling quickly, in some instances with multiple offers. Prices are not being bid up however as buyers remain cautious and sensitive to overpaying in a market that may well still be declining.

For the first 5 months of the year, sales are off about 5% from the same period last year, pending sales are only off 2.4%; healthy sales given the absence of government assistance. As for prices, area wide median sales prices are off 11% from last year, 9% in King county for single family homes. On the Eastside, prices are off 4.1% year over year. Of course, even local markets have variation from community to community its best to contact a professional who is familiar with your particular area.

As far as what the future holds, no one can really be sure. There are pundits on both sides that give convincing arguments for further price declines due to the shadow inventory of foreclosures that will continue hold prices down. The arguments for prices stabilizing is driven by the lack of inventory and current buyer demand (fueled by historically low interest rates and lower prices) that some feel will eventually lead to prices stabilizing. However, while there are sellers willing to sell at current market prices, those homes will attract the buyers while homes with 60-90 day old pricing will continue to stay on the market.

Please contact me for a private consultation or to gain specific market information for your home.