Why Winter Can Be a Good Time to Sell Your Home
If you’re thinking of selling your home but not sure if you should wait, here are some important points to consider.
1. Low Inventory, High Demand
Realtor.com’s Monthly Housing Trends Report states that national inventory has dropped 39% since last year. Here on Bainbridge Island, we also have low inventory, yet there are still many serious buyers. We’ve seen a significant increase in demand. In fact, closed sales were up 43.6% year-over-year in 2020’s third quarter. It’s now common to see multiple offer situations and we have seen an increase in all-cash offers.
2. Historically Low Interest Rates
Mortgage rates hit all-time lows a dozen times in 2020. Rates on a 30-year and 15-year fixed-rate mortgage (FRM) have dropped to 2.7% and 2.3%, respectively, as of December 3, 2020. Serious buyers are incentivized to act and many feel now is the time to buy.
3. Home Prices Are Up
Low inventory paired with high demand means home prices are up. This means there’s the potential for you to sell your house for top dollar. If you’ve really prepared your home for the market, you may also experience a multiple offer situation. But it’s important to note that this is where having a great agent can really make a difference. I’m a firm believer in thoughtful, strategic preparation, and I know this market very well.
4. Many Buyers’ Priorities Have Shifted
COVID-19 has impacted us collectively in a variety of ways. Many buyers are now focusing more on finding homes that offer space: a backyard, room to breathe, proximity to nature, and an area for their children to play and/or a home office. Bainbridge offers all of those things, and so much more. Our community appeals to first-time buyers as well as those looking for luxury homes. So although winter is typically seen as not the time to sell, nothing is typical about these current times, and we have a solid seller’s market with many serious buyers who are ready to buy right now.
First Quarter Stats & COVID-19’s Impact
First Quarter Stats for 2020
While many are curious about our first quarter stats for Bainbridge Island’s housing market, the data is almost meaningless due to COVID-19. It did not really impact the market during the first quarter. The data you see here regarding housing activity will be quite different by the time we report on the second quarter in July. Additionally, the high-end market has remained very active. Our lack of inventory still creates many multiple offer situations in homes under $1M.
From this first-quarter review, you can see that the median sale price has gone up 4.3% year-over-year and the number of transactions went up 31% year-over-year. However, as I stated, a look at the first quarter means very little because our situation has changed drastically since then.
How COVID-19 Will Impact Buyer Behavior
The national and state housing markets were in good shape before the virus hit. We anticipate that they will be in good shape again, once we come out on the other side of this. When the economy opens back up, we foresee a rapid climb in the housing market volume. This will put upward pressure on prices again.
Windermere’s Chief Economist, Matthew Gardner, has been sharing insights on a weekly basis. Here, he discusses the long-term effects of COVID-19 on our market and on buyer behavior.
It’s a Seller’s Market
The speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
Curious about what’s on the market? Here’s a look at my current listings. If you have any questions or if I can help in any way, feel free to contact me.
2020 Economic Forecast and Market News
Clients often ask me, “Is this the right time to sell?” or “What is going to happen to interest rates in the next year?” Here is Windermere’s Chief Economist, Matthew Gardner answering these questions, providing his data-driven economic forecast, and more!
2020 Economic Forecast
Washington’s Real Estate Excise Tax Change
Real Estate Excise Tax (REET) is a tax on the real estate sale and the seller typically pays for it. Starting January of 2020, Washington state’s Real Estate Excise Tax is changing to a graduated system. This new system may impact you if you decide to sell your property in the new year. Find out more from Matthew Gardner in this helpful video.
Local Market Info
Curious about how our local real estate market is doing here in Kitsap County? You can see the latest market data through our up-to-date trend graphs. Additionally, you’re welcome to look at my active listings and my office’s listings to get an idea of what’s on the market here on Bainbridge Island and across Kitsap County.
If you still have questions or want to discuss your real estate goals, let’s set up a time to talk. I’m happy to provide any information or assistance you may need.
Tackling Homelessness and Our Fall Market News
Partnering with the Seahawks to Tackle Homelessness
We’re proud to be the Official Real Estate Company of the Seattle Seahawks and we’ve partnered with them for a 4th year to help address homelessness through our #TackleHomelessness Campaign. For every Seahawks defensive tackle during a home game, Windermere donates $100 to Mary’s Place, which provides shelter, resources, and meals to families on their journey out of homelessness. As of Oct. 21st, we’ve raised $113,100.
The Fall Real Estate Market Cool Down
- In the last 9 months, single-family homes have sold for an average of $1,019,444. That’s a 1.6% increase from the same time period in 2018, showing how our robust regional economy positively impacts prices.
- Local agents have sold 288 residential homes through Sept. and 116 of them were sold during the summer. The market did heat up, but when comparing this time period to last year, that’s a 10% drop in homes sold.
- The 3rd quarter absorption rate (the rate at which available homes are sold each month) was 42.1% for single-family homes, a 13.2% decrease when compared to last year’s 3rd quarter.
- As of Sept. 30th, there were 80 active listings. Compared to Sept. of 2018, that’s an 11% decrease. But the number of homes sold in Sept. went up by 3% year-over-year and the number of pending sales increased by 6.5%.
A Look at Condominium and Land Sales
In the condominium market, 78 units have been sold so far this year. When we compare that to 2018, it’s a 21% decrease in units sold. However, September’s average sold price was $629,000, which is a 23.3% increase year-over-year.
Regarding land sales, the average sold price in September was $241,000, a 56.2% drop from September of 2018. But 12 lots were sold during the 3rd quarter this year while only 3 lots were sold during that quarter last year. Land still tends to sell quickly if there aren’t any major issues.
Why a Local Realtor Makes a World of Difference
Our Summer Bainbridge Market News
Sunny Skies For Our Summer Bainbridge Market
This summer, our Bainbridge market has really picked up in the last couple of months. Inventory is getting snatched up quickly and there are often still multiple offers, though that’s not as frequent as it was in the past.
- Local agents have sold 183 single-family homes so far this year.
- Of those, 133 were sold in the 2nd quarter, up 3.9% year-over-year.
- In the last 6 months, single-family homes have sold for an average of $1,017,667 up 2% year-over-year.
- June’s absorption rate (the rate at which available homes are sold each month) for all properties was 42.7%, down 26.7% year-over-year, indicating a change toward a balanced market.
- As of July 1st, there were 112 active listings. This is the most we’ve had in the past 5 years at this time. We also have the fewest pending sales (currently 48), so there’s more inventory and fewer sales. Let’s see if this trend continues with consistency toward a market shift.
Buyers are often more selective so understanding their expectations and Bainbridge’s current pricing is important. Many buyers are looking for homes that are in pristine condition. That’s why it benefits you to work with an experienced agent who can guide you through the process.
The Latest on Condominium and Land Sales
While the condominium market has softened, we’re still seeing significant sales with 50 units sold so far this year. June’s average sold price was $491,000. When it comes to land, if it isn’t encumbered by easement issues or similar challenges, then it tends to sell quickly. The average sold price for land in June was $247,000, which is a 51.5% decrease year-over-year. However, my colleagues and I are seeing more activity on vacant land; in June alone, 3 lots were sold and 11 went into pending status.
Moving Toward a Balanced Market
Windermere’s Chief Economist Matthew Gardner anticipates that we will begin to move toward a balanced market. In the past two decades, prices have either been skyrocketing or crashing. “Many [home buyers and home sellers] have never seen a normal market,” Gardner explains. “From a home seller’s perspective, they still have very heady expectations as to what their homes are worth…that needs to be tapered down a little bit. From the home buyer’s perspective, they’re seeing more choice now than they’ve seen in several years.” Despite what some media outlets say when analyzing shorter term averages, it is still a seller’s market and Gardner expects that “home price growth will continue but at a more modest pace.”
If you can dream it, we can find it.
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