Despite the loss of millions of jobs and a weaker economy, the Seattle-area real estate market hasn’t seemed to slow down much since the COVID-19 pandemic. With a low housing inventory and high competition, homes in the area continue to sell at record speeds.
A study from Lombardo Homes ranked Seattle as the most competitive housing market in the U.S. According to the study, homes for settlers were on the market for less than two weeks. A lot less than the six months that characterize a balanced market. These low inventory climates favor sellers as it gives them immense negotiating power.
This real estate boom is perhaps one of the most unexpected consequences of the pandemic. However, with demand for mortgages up 25% and all-time low-interest rates, it’s no surprise that markets are more competitive than ever.
Seattle’s Housing Inventory
Seattle’s inventory or active Listings refers to the raw count of homes for sales in a given location. Months of Inventory, also referred to as “months of supply” measure how fast all the existing homes on the market are expected to sell.
You can calculate it by dividing the total number of homes for sale by the number of homes sold in one month. In a balanced market month of supply equals six months. A value higher than six favors buyers, while a value lower than six favors sellers.
In November 2020, Seattle’s current inventory, or months of supply, remained as low as 1.71 months. Far from being an ideal market in which both sellers and buyers can negotiate for a good’s price.
With the combination of low mortgage interest rates, rising new home sales, and increased demand, Seattle’s current housing market gives many opportunities for homeowners looking to sell their homes quickly and for reasonable prices.
Seattle’s Competitive Market
Although Seattle was the first major U.S. city hit hard by the coronavirus; the Seattle-area housing market hasn’t seemed to slow down. Tight inventory, high buyer demand, and increasing prices continued throughout the year, creating a competitive market in Seattle, even though the holidays, which generally marks a slowdown.
According to a new study from Lombardo Homes, Seattle was ranked the most competitive real estate market. Seattle took the No. 1 spot on the list of the most competitive real estate markets in the country, with 71% of homes selling in under two weeks and homes staying on the need for a median of 10 days.
High Buyer Demand: Great Selling Opportunities
While demand for houses is strong despite the coronavirus pandemic, the shortage of homes for sale means home prices are rising rapidly in the state. Did you delay your plans to sell your home in the wake of the pandemic? Now might be the best time to sell. Investors, “We Buy Houses Seattle” companies, and house hunters continue to buy more properties at higher prices.
If you are interested in buying a home, you might want to wait until the second half of the year for more options and better prices.