The 2022 real estate market in Olympia has shifted and as we go into the fall and winter months, you might be questioning whether now is a good time to sell. Here are the top three questions I’m getting from sellers today.
1. Should I wait until next year to sell?
Even though there are more homes available for sale today than last year at this time, the Olympia market is still very much in a seller’s market with 1.5 months of supply. This means that there are more buyers than homes for sale so the market is in favor of sellers.
Buyers are searching for homes year-round but with dwindling inventory between now and the end of the year, this lower listing competition can be good for sellers.
For our office, the average number of offers per listing was 1.4 offers. Last year, it was 1.8 offers but this competition is also tied to the list price and inventory. Even so, 1.4 offers with more inventory and homes that are priced too high is actually a very good number.
On the flip side, why would sellers choose to wait?
- Sellers who have a choice may wait until next year to list just because:
- They don’t want to list during the holidays.
- Their home and gardens may show better in the spring and summer.
- Sellers are hoping inflation will get under control and interest rates will moderate or go down, and if that happens, then more buyers will come back to the market.
- Most current homeowners have excellent interest rates on their current mortgage and they are not too keen on giving that up.
- Sellers may not know where they are going to move to.
But most sellers are selling now because it is still a seller’s market and they need to sell because they are making a lifestyle change such as relocating because of a new job or they are downsizing or upsizing. If you need and want to sell today, the market conditions are favorable for you.
2. Are Buyers Still Out There?
Yes, buyers are still out there! Last month, the Olympia market had 419 homes go pending while there were only 403 new listings brought to the market. That is still very good buyer activity. With the higher interest rates, pending sales are down from where they were but again, most buyers are making a move due to lifestyle changes and they are not interested in renting.
Buyers are also concerned interest rates will go higher so they are willing to lock in now.
3. Can I Afford my Next Home?
This is a big question on many sellers’ minds. Where will they move to and can they afford it? The very good news here is homeowners have gained significant equity over the past few years. This equity will help sellers get into their next home.
On average, Olympia area sellers who owned their homes for less than two years achieved nearly $71,000 in price gains. And the sellers who owned their homes longer than 2 years on average achieved 6-digit gains.
I would also advise sellers to speak with a local, reputable lender about lending options that can take out the contingency of having to sell in order to buy. Some lenders have programs where homeowners can use their current equity to buy their next home first and then sell their current home. Not having this contingency can help when buying your next home.
Bottom Line
Timing the market is nearly impossible so I recommend selling when the time is right for you and then use strategies to list and sell your home based on the current market conditions. The bigger forces currently affecting the market are inflation and interest rates, and we’ll need to keep an eye on that. For now, things are still very good for sellers.
VIDEO: Should I Sell my Olympia, WA Home Now or Wait?
Unless otherwise noted, statistics compiled by Coldwell Banker Evergreen Olympic Realty and/or Francine Viola from NWMLS data. Statistics not published or compiled by NWMLS. Unless otherwise noted, statistics based on our own proprietary market study. Information and statistics derived from NWMLS.