SUMMER SLOWDOWN… A SIGN OF THINGS TO COME?
For the first time in 3 years, I am witnessing the Summer Slowdown that was previously an annual market trend. Despite the tech industry hiring spree and a crazy first half of the year, not every house is selling for multiple offers this summer. It will be interesting to see how this plays out in our summer statistics. Here are my 3 theories on why we are seeing this adjustment in the market:
Buyer Fatigue. This is a term I use at least 10 times a day. Buyers are tired of spending their time and money competing in multiple offers. Many buyers are making 6 offers on homes until they finally get one accepted. They need a break.
Buyers are on Vacation. Making an offer is a major time commitment. It is almost impossible to go away for the weekend and still be on an active house hunt. Often within only a 3-4-day period, buyers find the house, see the house, set up and attend an inspection, look up permits and research, and then make an offer. Memorial Day, 4th of July, the last week of July, and Labor Day, it is inevitable that half of Seattle’s population has left town.
More Inventory. In West Seattle, June had the most single-family houses come on the market since April of 2010. Overall Seattle statistics reflected the same pattern.
Is this a sign of scales tipping? The buying frenzy coming to an end? Probably not. The tech industry is hiring people by the thousands and there are several years of pent-up transplants who are currently renting in order to acclimate to the new city, will need to buy soon. However, interest rates will need to go up, baby boomers will retire and downsize, Mom & Pop landlords will bow out of the rental market due to increased regulations, and the City of Seattle will need to loosen building restrictions to accommodate the growing population. These will all play a role in balancing out our local real estate market.
This makes it more important than ever to strategically plan the sale of your home. Preparation, timing, pricing, and marketing will be even more important as more homes come on the market. As a Real Estate Consultant, I can work with you to create the perfect strategy to meet your goals.
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