Insatiable Buyer Demand Fueling Extraordinary Market Conditions in Western Washington

2020 was a unique one for real estate. Though the pandemic slowed the majority of the economy down, the housing sector boomed.

In fact, it saw almost unprecedented success. Buyer demand soared (up 40% at one point), bidding wars were a constant presence, and mortgage rates bottomed out — hitting a new record low more than a dozen times over, according to Freddie Mac.

The market even bucked the traditional fall slowdown, with unseasonably strong demand well into the cooler months. All this, despite an ever-worsening pandemic.

But now that 2020 is (finally) at its end. Will it be the end of the current housing boom as well?

Probably not!

The velocity of the December market is a harbinger of the 2021 market as tight listing inventory, low interest rates, and high buyer demand continue to drive momentum.

With just over a two-week supply of homes on the market, we are maintaining the extraordinary market we have seen all of 2020 right into 2021. Inventory down 44% from a year ago leaving many areas with only a 2 week housing supply. As a way of example: a 6 month housing supply is considered a “Balanced Market” with stable housing prices. With these sever shortages we are looking at looming Bidding Wars and a Seller’s market as far as the eye can see!

  •       Seattle Metro/ Real Estate Is Expected to Shine in 2021
  •       Median home price: $629,050
  •       Anticipated home price change: 9.7%
  •       Only San Jose is expected to have higher appreciation ay 10.1%
  •       Seattle Inventory is down 50.6% for Residential Listings
  •       Condo inventory however is up 7%
  •       A closer look at the MLS report for all counties shows the shortages are most acute for single family homes (off 50.6% area-wide), while the condo supply improved (up 7.1%).
  •       For the sixth consecutive month bidding-wars have exceeded 50 percent for all home sales, reaching nearly 57% for the previous month alone.
  •       The real estate market in King County as a “tale of two cities”, “While the residential market continued its trend of record low inventory, the condo market holds record high inventory when looking at the second half of the year, compared to the same periods over the past eight years.”
  •       Economist Gardner said there have been some “interesting shifts in the King County condominium market.” While the supply of single-family listings across the county remains painfully low, condo listings are 39% higher YOY. “Some are suggesting the increase in condo inventory is COVID-19 induced.
  •       Shifts are seeing people relocate out of cities for larger homes in the suburbs.

So how about Trossachs/Beaver Lake/Alderra in particular?

Least expensive Home Sold in Trossachs:
2036 266th Place SE, Sammamish in Braemore Neighborhood: Sold in May for $940,000 Listed at $1,000,000 for 94% of asking price. 12 Days on Market. 3,100 sq ft Murray Franklin

Most Expensive Home Sold in Trossachs:
1730 273rd Place SE, Sammamish in the Glenco Neighborhood. Sold in late July for $1,700,000 listed at $1,698,000. Sold in 3 Days 4540 sq ft Murray Franklin

Trossachs Residential Q1
· PPSF = $346.20
· Highest Price Per Sq Ft (Buchan 1856 273rd Place SE $405.64)
· 13 Homes Sold
· Day on Market 50
· Median Price Sold $1,280,000
· 100.32% of Asking Price
· Average Size: 3,765

Trossachs Residential Q4
· PPSF = $380.28
· Highest Price Per Sq Ft (MF 27174 SE 18th Place $462.46 Closed end of December $142,000 OVER asking Price)
· 14 Homes Sold
· Day on Market 7
· Median Price Sold $1,350,000
· 105.02% of Asking Price
· Average Size: 3,539

Alderra 2020
· PPSF = $323.58
· Highest Price Per Sq Ft ( 1923 298th Crescent SE Closed in November for $385.44 per sq ft)
· 17 Homes Sold
· Day on Market 19
· Median Price Sold $1,263,000
· 99,17% of Asking Price
· Average Size: 4,107

Beaver Lake 2020
With a wide array of homes built from the 1960’s to present and a vast array of builders it’s hard to make an accurate generalization on Beaver Lake.

The lowest price was a 2005 1786 sq ft home listed for $669,000 and closing for $755,000 in April

The Most expensive home was on Beaver Lake Proper with a pool:
Built in 1989 and closing in October of 2020 this 4,350 sq ft home went for $655.17 per sq ft and closed at $2,850,000

 

As a seller in this market you need to make sure that you have a Broker who understands the intricacies of Bidding Wars and how to help you maximize your home’s value. Getting top price is absolutely a priority but there are many other things to consider as well. Do you want to stay in the home past closing? Are you purchasing another home in the market? Appraisals? Inspections? The advantages and disadvantages of an all cash offer v/s financing. Protections if the buyers walk or financing changes, and much more.

We recently sold a home in Klahanie that listed at $475,000, received 28 offers in 1 day and went for $625,000 once everything closed. Having represented over 1,000 clients in the past few years on either side of Bidding Wars, we KNOW how to help you through the process!

We looked at the data on thousands of offers agents for The Cascade Team wrote and received in the last two years to see how the strategies we track affected buyers’ odds of winning a bidding war.

 

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