Thurston Country Market Conditions with Don Manzer
The market is not quite finalized on how it will settle into the new conditions. We look to be close though. A few sellers have now been dropping prices, or just lowering their expectations. It turns out though that most homes are still going for near or over the list prices. The showing activity has definitely decreased. Instead of having 10 offers to choose from on that special home there now might be 1 or 2. Sellers don’t usually have that “offer review date” scheduled anymore.
Potential sellers have gotten anxious to be sure to get their homes on the market, thinking maybe they might miss the good times. Therefore inventories have gone up dramatically, +208% year over year. However we started out at such an incredibly low level, the months of inventory is still only 1.6 months. We really won’t be in the range of a more balanced market until we get to 4 to 6 months of inventory.
At a Glance
Average Months of Inventory
Average 30YR Fixed Mortgage Rate
Available Home Inventory
Getting inventory to that level does not look likely in the foreseeable future. It seems most likely that it will still be a seller’s market, but not such an extreme one. Buyers should now often expect to be able to negotiate a little for homes, and not to waive all the contingencies that used to be common in purchase and sales agreements.
Actual numbers are the current inventory of homes for sale in the county is 685. That is the largest inventory we have had since the fall of 2018. For some perspective, the inventory peaked at 1800 in the fall of 2011. The median price of the current inventory is up 5.7% year over year. Average days on market is 35 days versus 22 last year. The number of pending deals is off 40% from a year ago to now 502. The median price of homes sold (3 month rolling average) is now $515,000. That is up 10.8% year over year.
It is now a more reasonable, less crazy market. If you had been waiting for those conditions to get into the market then give Don a call. Enjoy August.