We all are hearing in the news and on social media that it is a “seller’s market”. Simply put, this term means that there or more buyers than inventory and that home sales are brisk and prices are on the rise.
Having said that, the statistics tell a more nuanced story. As of last month, the average days a home has been for sale on the market in Thurston County went from 17 last July to 41 in March 2018. In a seller’s market, there is one main reason for this: affordability. The two factors behind affordability are increased prices and interest rates, which have ticked up slightly. A more minor factor in affordability is increased property taxes (and in our county they did increase) – which make that monthly payment just a tad more painful.
Along with housing prices that are organically on the rise, there is another factor – unrealistic expectations sellers have about the value of their home. A home that is listed $20,000 or more over asking price may indeed sit. It is not unusual to see several price reductions on homes that were originally priced incorrectly. Sure, the midnight blue home with the stark white trim may take some time to find just the right buyer, but literally any home will sell if priced right. Serious sellers price their home correctly and serious buyers move on those properties. It is a known fact that homes that are over priced eventually sell for less than homes that are priced correctly to start.