What’s new for the Olympia, WA Real Estate Market for July 2012? – Balance is Key
For the first time since 2007, Thurston County entered the summer in a balanced market. This is an important milestone in our housing recovery. Balance in the market is measured by the number of months it would take to sell the entire inventory of homes for sale in Thurston County. Too many months signals a market that favors buyers, while too few months favors sellers. A balanced market in our area is a four to six month supply of homes for sale.
Thurston County currently has a 5.5 month supply. The last time we saw this level was back in the early summer of 2007. At that time, the market was transitioning from a hot seller’s market to the longest downturn in housing market history.
BALANCE IS KEY
Today’s balance appears more sustainable than transitory for a couple of reasons.
1) Prices are back at levels that our area’s household incomes can support.
2) Mortgage qualification standards have improved.
The greatest contributor to the accelerated market run-up in the last 10 years was the sizeable artificial demand created by loose mortgage practices. Too many unqualified buyers received home loans they simply could not afford. With the mortgage markets returning to normal, buyers today are truly ready and able to carry the mortgage payments. This will better ensure that the supply of homes is not inflated with short sales and foreclosed properties.
(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 July 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.