Wherever you turn lately, you’ll hear there’s a shortage of inventory in the Seattle housing market. Is it true? Absolutely!
Let’s take a look at some selected neighborhoods.
Greenlake – As of today there are 19 single family homes for sale. At the end of December there was .7 months of inventory (a balanced market has a 5-6 month supply). A new listing had open houses both days last weekend and had more than 100 groups come through. Clearly, demand seriously outweighs supply, showing there is a shortage.
West Seattle – Today there are 180 homes for sale throughout West Seattle, with year-end inventory at 1.9 months. Definitely more inventory than Greenlake, but still a shortage.
Queen Anne – One of Seattle’s highest demand neighborhoods, today there are 29 homes for sale. Year-end inventory is at 1.3 months. Still a shortage.
Mt. Baker – 10 homes for sale today, and 1.8 months of inventory at year-end. I know that at least one of those 10 homes will go pending today as I have clients who have submitted an offer; that home had 4 pre-inspections and so there are probably more offers than that.
I have clients who wanted to put an offer on a townhome in Magnolia. Came on the market Tuesday, by 6pm Wednesday it had 3 offers and had gone in to contract.
All of these is evidence that there is a serious shortage of inventory. In fact, builders and realtors are estimating it will take another 6 years or so for building to catch up with demand.
If you took economics 101 in high school or college, you probably recall the theory of supply and demand. When demand is high and supply low, the market will increase prices. We’re seeing that happen; on average Seattle saw a 13% price increase from 2012-2013.
If you’re at all considering selling your home, this is the time. Interest rates will creep up over the course of the year, decreasing buying power for buyers. Buyers are ready to buy – approved and anxious to close on their home.
I am available to provide a complimentary market analysis of your home. No obligation, just a tool to help you figure out if this is a good time for you to sell. Give me a call or email to discuss.