The Olympia WA real estate market (in Thurston County) is in a solid seller’s market. Currently, the standing inventory of homes listed for sale in the NWMLS is about 300 homes. (A balanced market in our area has about 1,200 to 1,500 homes listed for sale.)
These statistics and constant headlines of “low inventory” and “there’s nothing to buy” and “prices are too high – wait for the market to crash” are misleading and might potentially derail some buyers’ ambition of buying a home at this historic time where, in fact, there are A LOT of opportunities to seize.
Before we dive into how to find a home in a low inventory market, let’s refresh on the current opportunities of this real estate market.
Low Interest Rates – I’m sure this is a common headline you have seen many times and you may have become numb to it by now. Here’s why this is important and why you keep seeing this headline.
*Rates from www.freddiemac.com/pmms and rates quoted here do not include average fees, points or costs of obtaining the mortgage, and are 30-year fixed rate mortgages. The February 14, 2020 rate has an average 0.7% fees/points.
**Statistics compiled by Francine Viola from NWMLS data. Statistics not compiled or published by the NWMLS.
***Dollar amounts shown are for principal and interest only. They do not include taxes or insurance costs.
Many buyers are under the assumption that prices are too high for them to afford a home. That isn’t necessarily the case. In looking at the average mortgage interest rate compared to the median home price in Thurston County, buyers today have a lower monthly P&I payment – all because the lower interest rates of today have absorbed the increasing home prices.
(In a few years, you’ll be bragging about the interest rate you secured today.)
Number of listings coming on the market
Thurston County has had a record number of new listings coming to the market. In 2019, our market had 5,001 new listings come to the market. That is our second-best all-time high, getting beat in 2018 with 5,269 homes coming to the market.
So why is everyone saying, “there’s nothing to buy?”
The difference is the fast pace in which these new listings are being absorbed. Most listings are not languishing on the market and instead are going pending very quickly. Thurston County’s average days on market is 11 days.
Buyers today have to be ready financially and have to be able to make quick decisions in a very short amount of time to come out ahead. There are choices and there are homes available for sale. If you miss out on a home, wait for the next listing to come online.
So…..how do buyers find a home when there is low inventory?
There are five steps to take in order to find and buy a home in 2020. They are:
Step 1 – hire an experienced, outstanding REALTOR®(preferably named Francine Viola).
Steps 2-5 – your experienced REALTOR® will take care of the rest! But here are some steps your outstanding REALTOR® can take to find the right home for you.
They may…..
Show you over-priced listings. Yes, even in this market, there are homes that are over-priced, that sit on the market and eventually may do a price reduction. Make an offer to that seller before they do a price reduction. Your outstanding REALTOR® will guide you on this and can provide market value to determine what the home should be listed for, and then don’t be shy about making that offer. Too many buyers will ignore over-priced listings, and for good reason. But in this market, buyers need to shift their mindset on over-priced listings and consider them.
Contact sellers whose listings have expired or they have canceled. Sellers will take their homes off the market or choose not to relist for a variety of reasons. Your outstanding REALTOR® will be able to contact these sellers and find out if they are willing and able to sell.
Contact homeowners in a particular neighborhood. If you have honed in your target area for your next home, your outstanding REALTOR® can solicit those homeowners to find out if they are considering selling.
Network with other outstanding REALTORS®. REALTORS® are great at networking and talking shop! Your outstanding REALTOR® will be surveying their own office for upcoming listings and will be chatting with their colleagues at different firms. Although “pocket listings” are not allowed in our MLS, we can be ready for when that listing becomes active on the market.
Buyers – don’t despair. This market has many benefits for you, too. And we haven’t even talked about growing equity! The market has not topped out for pricing as far as we can see. There is still time to be a smart investor in the Olympia real estate market.
Contact me today to discuss your options. I’m available and taking appointments now from both buyers and sellers for Olympia and the greater Thurston County area.
All statistics quoted in this post were compiled by Francine Viola and/or Coldwell Banker Evergreen Olympic Realty from NWMLS data unless otherwise indicated. Statistics not compiled or published by the NWMLS.