Winter Market to Remain Steady
2020 has brought the unexpected in many ways. The real estate market is a great example of that. Despite high unemployment and an economic recession during the Covid-19 pandemic, we have seen the housing market surge. According to Lawrence Yun, chief economist of the National Association of REALTORS®, the winter market may not match the numbers from this last summer or spring, but this will be one of the strongest winters for sale activity. This is based on the fact that pending contracts are at such a high level.
With half of those who used to work in an office now working from home, many are rethinking where they live. Several tech companies have announced a permanent transition to remote work. This has led to many considering moving farther out of the city to the suburbs or rural areas. Increasingly, home buyers have also seeking larger homes and ones that can accommodate multiple generations.
Moving forward, the challenge will continue to be housing shortages. A balanced housing market is considered to be at a five to six month supply of inventory. According to the Northwest Multiple Listing Service, the Central Puget Sound area including King, Kitsap, Pierce, and Snohomish counties had a .8 month supply of inventory as of October. That means that it would take less than a month to sell the current inventory of homes on the market, given the current pace of home sales.
If you have questions about the market or are considering buying or selling, contact us! We have helped many buyers and sellers navigate this market and can do the same for you.