Here are my 2013 real estate predictions for Olympia WA but first, let’s look at where we were in 2012.
In 2012, we finally saw the recovery of the real estate market take hold. It took over five years to begin to correct, but the good news in 2012 is we saw the demand for housing increase 8% but the supply of inventory of homes went down 25%, which has created stabilization in home prices and the begin of a meaningful and sustainable recovery.
Olympia did not begin to correct until 18-24 months after the rest of the nation. And regionally, our largest metro markets north of us in King and Snohomish counties have already seen rising sales and rapidly declining inventory over the past three years.
If the patterns that have emerged locally over the past 18 months hold for the next six months, the Olympia real estate market should begin to similarly see prices rise, albeit not as rapidly.
2013 Predictions for Home Prices in Olympia WA
Based on where we’ve been and in looking at other regional real estate markets, I am making the prediction that home prices in 2013 will increase modestly but will increase 5% to 7%. Our current average home sales price in December 2012 was $232,158. I’m predicting our average sales price will be $245,000 by December 2013.
2013 Predictions for Inventory Levels in Olympia WA
In 2012, we saw a 7.5 year low in inventory. With prices at 8-year lows, more buyers are returning to the market. Combined with all this, new construction plats have decreased, allowing the market to absorb the excess in inventory in 2005 and 2006. My prediction for 2013 is inventory levels will continue to decline slightly. This also will create an increase in home prices.
2013 Predictions for Foreclosures/Distressed Sales in Olympia WA
In 2012, we saw the rate of foreclosure notices (pre-foreclosure action) increase steadily throughout the year. Any increase in the foreclosure rate is not welcome, however the vast majority of foreclosed properties are in a price range where the market is significantly under-supplied ($160,000 and below). Because of this, the limited supply of homes under $160,000 should buffer any marginal rise in foreclosures. My prediction is foreclosures will be on the decline again. Banks are better equipped to deal with loan modifications and short-sales, and hopefully that will mean fewer homes will end up in foreclosure.
My final prediction is I see you are considering selling your home or buying a new home in 2013. Call me today to make this prediction into a reality!