Thurston County Market Conditions with Don Manzer: February 2018
The big story in the local real estate market is the incredibly low inventory. It is so low that it is clearly reducing the number of deals being made. We only have 461 homes for sale in the county, off 27% from a year ago. Peak inventory was back in the summer of 2010 when we had over 2000 homes for sale. That is a serious change.
Average days on the market for the inventory is 99 days, but of course the best of the homes fly off the shelve within days. The median price is up 12% year over year to now $375,000. The weird statistic in the market is that the number of pending deals is off 25% from a year ago to now 556 deals. That decrease in deals is clearly the result of the current low inventory.
The months of inventory measure is still a remarkable low of only 1.1 months. That is an absolute seller’s market. One year ago it was 1.6 months of inventory. Balanced markets tend to occur in the 4 to 6 months of inventory levels. Inventories are so low that they are clearing affecting the number of pending deals. There are just not enough homes for the number of buyers. We still do have that discrepancy by price range. For homes price below $450k there is 0.8 months of inventory. For homes priced above that there is 2.9 months of inventory. Both measures though show a very scarce inventory.
The Last 12 Months at a Glance
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It still looks to be a reasonable time to be a player in the real estate market, especially for sellers. For buyers interest rates have ticked up a little to now 4.15% average for a 30 year fixed. That is still quite low from a historical perspective. There continues to be plenty of optimism in the marketplace. Have a great February.”