If you’ve been following the real estate market in the Seattle metro, you know it’s more competitive than it has been in maybe a decade. Available inventory continues to fall, with less than two months’ inventory now hitting a one year streak (balanced markets have 5-6 months’ inventory). Sellers continue to get higher prices for their homes, and greater returns over the list price (the average sale price in Seattle right now is 102% of the list price). In short, every sale is a battle.
It’s a tough time for buyers. Everyone seems to understand that financing terms are still outstanding, the local economy is booming, and home prices are projected to rise moderately for the next few years, creating a healthy investment environment. Whether it’s downtown or on the Eastside, everyone realizes it’s a great opportunity.
Everyone, that is, except for sellers. There’s some perception by sellers that if they list their homes, even if the time seems right, they won’t be able to find somewhere else to move when it sells. That self-fulfilling prophecy is, of course, questionable logic for someone who’d really like to move into a larger home or a different neighborhood, because their ability to finance that next property will probably never be better than it is now. The reality is, though, that sellers are not listing enough properties at the moment, and buyers are crawling over each other to get into a home.
This is particularly difficult for first time buyers. We’re seeing folks who are absolutely committed to buying a home, visiting properties the first day they’re on the market, and making offers the first weekend. They’ve gotten pre-approved, have good jobs, and are ready with down payments. They also, almost inevitably, will lose out on their first try. It’s not just first-time buyers, either, this affects nearly any buyer who is financing a purchase.
It’s not their fault. It’s in our nature to try to get a deal. Most buyers, when they write their first offer, are afraid of over-paying. They want to make sure they don’t leave money on the table, so they make a frugal offer for their attempt at buying. It doesn’t work in this market.
There are no discounts in the Seattle market right now-period. Either the home sells in the first week, or it was significantly overpriced.
Of course there are exceptions to that statement. Unique properties, luxury price ranges, and quirky locations can cause certain homes to linger on the market longer. For the vast majority of homes that serve the “average” Seattle population, though, they’re going to sell for full price, the first week on the market. If they’re priced appropriately, they’re going to get multiple offers.
May 25, 2014 Sam DeBord - SeattleHome.com
