While still a seller’s market, it is one of the best times to buy a home that we’ve seen in a couple of years. Inventory is up, which means buyers have a larger selection of homes to choose from. In addition, interest rates are down, meaning buyers can qualify to purchase higher-priced homes than the same time last year.
Although buyers are getting a bit of relief, we still see multiple offers on properties that are listed below the average sales prices for the area. Also, many buyers are looking to Pierce County for more affordable homes. In Tacoma, for instance, homes are around half what they’d go for in Seattle. Buyers who can accept a longer commute will be able to afford much more home for their money in Pierce County.
Inventory, pending sales, and prices all increased during June compared to a year ago, according to the latest report from Northwest Multiple Listing Service. The same report, which covers 23 counties in Washington state, shows year-over-year drops area-wide in both the volume of new listings and closed sales. This indicated we are moving from a ‘hyper-market’ to one where a correction is underway compared to last year.
The median price for single-family homes and condos that sold last month in King County was $637,675. In Pierce County it was $372,500, about 58 percent of the King County price. The Northwest MLS report indicates there is 1.76 months of inventory area-wide (matching May), with eight counties having less than two months of supply.
High-end home listings (homes over $1.5 million) are on the rise. This is likely due to upcoming changes to the Washington State Real Estate Excise Tax (REET) that takes effect in 2020. New rates go from 1.28% across the board for sellers to a graduated tax rate, meaning a higher tax rate for higher-priced homes.
If you’d like more information about how the Puget Sound real estate market is affecting your specific home’s value, The Goelzer Home Team offers a free, no-obligation Comparative Market Analysis. To request your free CMA, please visit: https://goelzerhometeam.com/home-value-analysis