The winds of change have shifted Seattle’s housing market in favor of those who are in a position to sell. Close to the job centers 75% of homes are selling in the first six months compared to 45% in the fall of 2010. A healthy amount of housing inventory is between five and six months, but the month of March put available inventory at around 1.6 months supply for King and Snohomish Counties. The shortage of homes for sale and the increasing number of local buyers entering the market to take advantage of the lower adjusted prices and historically low interest rates has created high demand for new properties coming on the market
It is foreseeable that this shortage of inventory will continue for some time. With both residential investors and local home buyers competing in the market place for a restricted amount of homes, the supply will not find much relief. The restriction of supply is being caused by several factors; underwater sellers not able to bring their home on the market and sellers with equity thinking they can’t currently sell or waiting for prices to rise.
The shortage of inventory and the flood of local home buyers to the market falls in line with the classic principles of supply and demand, which is why we are now seeing a steady stabilization and the beginning of price increases, as is evidenced by the emergence of multiple offer situations.
Buyers who want to win their dream home, in these multiple offer situations, need to come to the table prepared. There are four important things a buyer can do to be “buyer ready.” The first is to have a detailed market review consultation with your trusted real estate broker. Second, read 10 tips to make a winning offer in multiple offer situations and implement every technique you possibly can from that list. The second is to get pre-approved by a lender. The third is to get in the flow of information. Sign up to receive email notifications when new properties come on the market within your desired market area and price range. You can also download a mobile app, like the John L. Scott Mobile App, on your smart phone which will let you look up property information on the go.