Olympia WA Real Estate Market Update for August 2012
The Olympia WA real estate market update for August 2012 is seeing positive changes. The highlights for the Olympia WA real estate market for August are:
· More closed sales
· Less inventory
· Prices have stabilized
· Moving toward a “seller’s” market
More Closed Sales
We have seen an increase in pending sales but not all of those pendings have closed. Now we are seeing more homes actually close and sell. Year-to-date, we have 2,440 pendings; last year at this time we had fewer pendings at 2,124.
For just the month of August 2012, our market had 298 closed sales. This is up 28.4% from last August where our market had 232 closed sales.
In looking at the trailing 12 months of home sales, we are up 6.4% over a year ago.
We are seeing more closed sales because:
· Homes are priced right and are appraising at value.
· More and more short-sales are becoming closed sales. We believe banks are more willing to negotiate and their procedures have been streamlined to be more efficient.
· More buyers are entering the market. Their confidence is higher than in the last few years, and interest rates are still well below 4% for a 30-year mortgage. Many buyers in our area are realizing 3.25% and 3.5% interest rates.
You can see in the chart below how well our pendings have turned into solds.
With less of a product to sell, the demand will slowly drive up prices. At one of the lowest points of our market, we had the highest levels of inventory at 2,333 homes for sale. For August, that number has been nearly cut in half to 1,259 homes for sale.
Prices Have Stabilized
Since September 2011, the average home sales price has been between $230,000 and $235,000. Since 1985, this 12-month stretch is the longest period of price stabilization our market has seen. I view this as we have “hit bottom” and will work our way to prices slowly increasing.
Moving Towards a Seller’s Market
Between interest rates, low inventory levels, price stabilization, more pendings turning into solds, all of this shows the Olympia WA real estate market moving towards a “seller’s market.”
For 2013, I am anticipating fewer homes for sale and more buyers entering the market, either as first-time homebuyers or the trade-up buyers looking for a larger/newer/better home.
Out of all the brokerages that did business in Olympia, year-to-date, Coldwell Banker Evergreen Olympic Realty remains #1 with the most listings, solds, sales volume and the highest market share. I and my colleagues have earned this accomplishment through hard work, professionalism and dedication to providing excellent service to our clients.
(All data compiled from the Northwest Multiple Listing Service. Data is deemed accurate but not guaranteed.)
If you’d like more information about how the Olympia WA real estate market for August 2012 can affect you in your home purchase or home sale, call me today. And be sure to visit my website to check out the current homes for sale.