It’s July. Or so I’ve been told. The calendar says it soooo…I guess it must be true. The weather has been gloomy (typical June), and we’ve all been at home so long, the days of the week no longer seem to matter much. Fortunately, summer is just around the corner on July 5th, right?
This year will undoubtedly be weird. No big fireworks celebrations, BBQs with tons of friends and neighbors. In the meantime, we all keep our fingers crossed that we can do all those things again next year–and keep our masks on in the meantime.
What’s Up? New Listings
Remember, stats like closed sales and price/square foot are based on what happened the previous month. So if we look at March’s median price/sf, that number is a reflection of all the deals that went under contract in February and closed in March, just as COVID-19 was really ramping up. As more buyers stayed out of the market in April and May, we see that slowdown reflected in May and June prices.
On the bright side, the market really woke up in June! As more counties moved into Phase 2 and Phase 3, more sellers brought listings on the market, and more buyers decided to get out and do some house hunting.
While open houses are a thing of the past for now, more and more listings feature video tours, which can really help buyers get a better feel for a property before going to see it in person. Showings are a little different sometimes, but not too drastically. We all just have to be more careful. So, no more tours with the extended family along for the ride! Check the WA Realtors COVID-19 resource center for current info and guidelines.
The (Slightly) More Country Life
While we haven’t exactly seen an exodus from the big cities of Seattle and Tacoma, there is a trend towards properties in less urban areas. Median sales price and price per square foot continue to rise in Kitsap and Pierce Counties, but took a dip in May King County where concentrations of COVID-19 have been higher and let’s face it: It’s just harder to stay distant in the city. June did show an uptick in King County, but still not back to March levels.
What’s Next
I’ve polished up the crystal ball and what do I see? A continued uptick in inventory and sales prices, but nothing too crazy. With inventory down about 30% over last year, it’s looking like prices will rise slightly, but more measured than in 2018. (Remember when any listing received 40 offers and went at least 20% over asking?!) We’ve been seeing 100-108% of asking price lately.
Interest rates are still bananas (low 3%), which certainly helps buyers get more house for their buck.
And until there is a vaccine and/or we’re in Phase 4, I don’t see a huge increase in homes for sale. It’s just too risky for many sellers, especially those who are downsizing and in higher-risk groups. Even with the wipes and the sanitizer, those who are still occupying their homes are just going to be more hesitant to hit the market.
Got Questions?
Take care out there and stay healthy, everyone! In the meantime, if you have questions about the market or want to know the value of your home in TODAY’S market, don’t hesitate to contact Megan.