Just like the hot weather of summer, it is still a hot real estate market in Olympia, Washington!
JULY BROKE THE INTERNET!
July had a record number of home sales – the highest number of sales for ANY month. But we also had A LOT of new listings come to the market, and this eased the competitiveness just a bit. But buyers quickly devoured these as 673 listings went pending in July.
Despite the high level of sales, this “easing” has many observers misreading the signs and commenting the market has softened or cooled. This might cause sellers to believe prices have peaked and buyers to think the market is shifting in their favor.
This is like in June when we had that record heatwave of 109 degrees:
Before the heatwave, we thought 80- and 90-degree weather was hot. Now, these same temperatures feel cool compared to that record-setting heat.
The real headline: home prices are still going up.
Even though we added more listings and the competition has eased a bit, that hasn’t changed the pace of home prices. They are still rapidly rising.
Market-wide median home prices are up over 18% in looking at the trailing 12-month median home price to over $420,000. Considering our historic annual gains have been 5 ½%, going up over 18% in one year is pretty impressive.
Equity Gains
The gains sellers are achieving are staggering.
Competition
For Sellers:
Although sellers may only receive a handful of offers instead of a truckload of offers (!), many sellers are still getting multiple offers and very strong offers, which continues to push prices up. Homes are selling 22% above last year’s prices, which means the easing of competition is not cutting into sellers’ equity gains.
For Buyers:
There is some good news:
- With more listings coming to the market in July, there are certainly more choices for buyers.
- July was the lowest percentage of contracts with multiple offers since January (but this doesn’t mean we are shifting into a buyer’s market).
- Less competition has given buyers an opportunity for more balanced terms. For example, when buyers were desperately waiving home inspections in order to beat the competition, they are finding now they can still include a home inspection and win. (It is the rare case where I will recommend waiving a home inspection but the good news is this aggressive tactic is fading.)
The fact is buyers still outweigh sellers 2 to 1. This imbalance between supply and demand is pushing home prices up. In July, 81% of the contracts were at or above the asking price.
VIDEO: July 2021 Olympia Real Estate Market Update for Buyers and Sellers
Call or email me today if buying or selling is in your future, and I’ll help cut through the hype so you can find success in this summer market.
Statistics are compiled from NWMLS data by Coldwell Banker Evergreen Olympic Realty and Francine Viola. Some statistics are based on our own proprietary market study.