Friday, October 25, 2019 / by Elizabeth Sorensen
Fall may be in full swing, but home prices aren’t falling anytime soon! This past week, 170 new listings hit the market compared to 163 the previous week.
In Spokane County, for stick-built homes on less than one acre, we are are still hovering at just over one month of inventory. We have been here for so long, that home prices are still holding strong and continuing to creep up. Combined with great mortgage interest rates, it is, and has been a very favorable market for sellers.
Of the 2,217 homes that are active, 1,213 of these are already under contract- meaning they already have accepted offers on them. This is called the “pending ratio” and right now we are at a 54% pending ratio. You may have experienced this if you are looking for homes online on sites such as “Zillow” or “Trulia”. You see an adorable home, only to call on it and find out that it is already under contract. On these sites, you are not usually seeing an accurate representation of available homes. Make sure that you are working with a realtor that gets you set up on their agent app or website so that you can see the homes that are actually available to make offers on.
If you do fall in love with a home and someone else has beat you to it, talk to your agent about putting in a back-up offer. This is a very successful way of getting a home in this market. With the intense pressure for buyers to make an immediate offer on a home, many buyers will then back out of a contract during the first 10 days and the home will then go “back on the market.” We are seeing a rescission rate right now of over 40%, so back-up offers are an excellent opportunity for buyers to secure a home before it comes back on the market and draws multiple offers again.
If you are a buyer, it is critical that you are educated and prepared as the demand and competition for homes is so strong. Make sure you are pre-qualified, have a responsive agent experienced in negotiations, multiple offers and how to make you stand out amongst a pool of other buyers who are all vying for that same home that you fell in love with.
What does this mean for you as a seller? The buyers who are out there are on the hunt and many other sellers will be waiting until spring to list their home, so there is less competition for you right when listing your home. These two factors combined with the low inventory, make it an excellent time to sell your home.
While homes in the higher price points aren’t seeing as many multiple offers, this is still common in the $250,000 and under properties. There are still many buyers out there looking for homes and not a lot for them to choose from, but more than it has been throughout the spring and summer months. With many of the opportunistic buyers holding off again until spring, the serious buyers are still out looking and hoping to be in a home before the holidays.
If you'd like to know how this market impacts your decision to buy or sell, reach out to me! I'd love to answer any questions you may have about buying or selling in Spokane County.
Haven Real Estate Group