For the past couple of years, home sellers have been laughing like a blood-thristy Dracula in the Seattle area. "Muhahaha" they shrieked, as they received 900 offers (over-exaggeration) on their listed home from desperate home buyers. In some areas, sellers have been fortunate enough to sell their homes upwards of 15% over asking price (sometimes way more), with unbelievable terms.
Until now. *cinema guy voice*
Well, sort of. There are a couple of components to this, it's not really one cause. Recently, the city of Seattle has slapped a "head tax" on big business, taxing them on each and every employee. Outraged, Amazon cancelled their plans to build a new complex that would've added 6,000 jobs to our area.
Why is this such a big deal?
It's kind of a big deal because the Seattle real estate market has caused the outlying markets to also increase in value. Also, home buyers are burnt out to the max. Many buyers have turned to rental options due to not being able to compete with foreign investors with expendable cash.
For the first time in a while, our supply of homes have leveled-out in King & Snohomish County. Here is a chart straight from the MLS:
Does this mean the market is going to crash?!
No. What? No. I mean, anything can happen, but you have to realize that we have had an insane number of jobs added to our local economy the last couple years. At one point 54 people were moving here every day. When you have more need for housing verses number of homes on the market, this naturally will create higher demand. Just because less jobs will be added in the short term doesn't equate a crash. The last time we had a crash lenders were lending to people that weren't nearly well qualified to buy, on top of other reasons.
Selling & Buying in the current Real Estate market
I'll give it to you straight. No one knows what is going to happen for sure in 2019. It's still a fantastic time to sell, but it does seem like the days of crazy bidding war situations are starting to close out a bit. If you want the highest price possible for the near future, you probably don't want to hold off selling at this point. For buyers, this is great news – inventory is going up, which means less leverage for sellers. You will have more options as you hunt for your dream home, and in many situations not have to bid as high as you would've had to in 2017 & early 2018.
The market is still competitive. If you are buying, you will most likely still be competing with other offers on a home, so make sure to hire great representation that can help you stand out. If you are selling, you could lose thousands of dollars if your home isn't priced or marketed right. If you'd like a consultation, please contact us!
Remember this – it's a shift, not a permanent change. Nothing is permanent. Every market is different for different reasons. The future is very bright economically for our area, so either way you are swinging (buying or selling), buying back in to this market is a smart move that will pay off for many years to come.
Just don't wait to sell unless you really don't have to, unless you want to sell in 5+ years. The ship is preparing to sell (sail) – super pun intended.