Thurston County Market Conditions with Don Manzer: March 2018
The big story in the marketplace is the incredibly low inventory. There are many more buyers than sellers. This situation is pushing the prices up steeply. To aggravate things, the interest rates have now been noticeably moving up. When viewing charts based this data it seems obvious that there is a lot of stress in the market. Stress in markets usually causes extra volatility and unusual outcomes.
Inventory is down 25% year over year to now only 426 homes for sale in the county. The author started keeping records in 2001. This level is “off the charts”, unheard of in that time frame. The number of current deals, “pendings”, is down 15% year over year. Median list price is up 17% to now $399,900.
Average days on market is only 104 days. The months of inventory measure is a remarkable low of 1.1 months. That is an absolute seller’s market. One year ago it was 1.5 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. That discrepancy by price range is still there. For homes price below $450k there is 0.8 months of inventory. For homes priced above that there is 3.2 months of inventory. Both measures though show a very scarce inventory.
The Last 12 Months at a Glance
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It is a great time to be a seller in this market. Buyers are probably in for some frustration with the scarce inventory and extra competition. However, even though interest rates are moving up, they are still quite low levels from a historical standpoint. They are now averaging 4.4% for a 30 year fixed. There is also plenty of optimism in the marketplace. “