Real Estate Market on Track for Strong Summer

Despite the current state of our world being what it is, the real estate market is showing no signs of slowing down as we head into summer.

Kittitas county in particular appears to be healthy as ever — home values grew an astonishing 2.9% from April 2019 to April 2020. Read our latest blog post to learn more!

The coronavirus pandemic created an economic freefall experienced across the country this spring, causing a lot of uncertainties in the real estate market.

At a time when the real estate is gearing up for its hottest season of the year, the country was experiencing record unemployment claims. Some sellers have cancelled their listings, while many opted to wait to list their homes until things settled down.

Here’s the good news: stay-at-home orders are being lifted across the nation and we are finding our new normal as the real estate market shows promise for a strong resurgence this summer.

Summer Will Pick Up Spring’s Slack

Experts predict that the summer will be hotter than usual as it picks up some of traffic that the spring season would have seen.

Chief Economist Danielle Hale, from Realtor.com, told Yahoo Finance, “There are a lot of indicators showing that the summer is going to be a good period for the housing market. I think we’re going to see some of the buying that would have happened in the spring shift into the summer.”

Housing prices and mortgage applications support these predictions.

Mortgage Applications

Heading into the month of March, mortgage rates were starting to rise, making a promise for a spring market with a lot of pent up demand as buyers tried to lock in rates before seeing any additional increases.

However, as the pandemic set in, mortgage rates dropped to a 30 year low. This, in combination with Americans who are ready to resume life despite the pandemic, has caused a surge in mortgage applications.

Data from the Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association shows that mortgage applications have increased in the beginning of June by 13% higher than June of 2019.

Housing Prices

Throughout the pandemic, housing values have shown resiliency. In April the median home value in the Cle Elum area increased by 2.9% of the year prior and by mid-May values had increased by 1.8% year over year. Even June saw growth over last year’s performance, finishing the month with a current median home price of

Rising home values coupled with historically low rates and lower available inventory indicate an active and busy summer real estate market.

Here’s a look at how our local market is shaping up:

 May 2019May 2020
Homes Sold91
Median Home Value$338,000$342,000
Avg. Days on Market29

During an unprecedented time, it is reassuring the see the real estate market recovering in this strong of a manner. If you were planning to make a move in real estate this year, the summer is looking to be a great season to do it.

Why the Housing Market Will Remain Strong Despite Social Distancing

A lot has changed in our world over the past couple of months and we are facing an unprecedented situation unlike anything the world has ever seen. Everyday life has changed tremendously for nearly everyone in the world and naturally, people are examining the short-term and long-term implications of these changes.

Despite the major impact on our global economy, the real estate market in the United States is showing promising signs that it will weather this storm

A lot has changed in our world over the past couple of months and we are facing an unprecedented situation unlike anything the world has ever seen. Everyday life has changed tremendously for nearly everyone in the world and naturally, people are examining the short-term and long-term implications of these changes.

Despite the major impact on our global economy, the real estate market in the United States is showing promising signs that it will weather this storm.

Business is Being Conducted Virtually

The real estate industry is responding to the coronavirus crisis just like the rest of the world — it is adapting. We are seeing many new ways to conduct business while maintaining social distancing. Title companies are performing drive-through closings that allow both buyers and sellers to sign required documents without going into the office. Mortgage lenders are relying on their already-established virtual capabilities for accepting applications and receiving documentation.

Realtors are finding creative ways of showing properties without having buyers physically present by relying on “virtual tours” and utilizing tools like Facebook Live to conduct open houses. Sellers are opting for “touch free” showings by leaving cabinets and closet doors open.

Buyers Eager to Purchase

Despite the current coronavirus outbreak, buyers are still showing many signs of urgency within the market. Mortgage rates still hover around all-time lows, and those in favorable economic conditions want to buy a home now to take advantage of these rates.

The number of video tour requests for showings has been steadily rising. A recent poll conducted by RedFin showed that many buyers are opting to make an offer on a property sight unseen. They are making offers after seeing properties through virtual tours. Last week 12% of offers made were by customers who had toured the home only by video, up from 6% last week and nearly 0% at the beginning of March. 

Pent-Up Housing Demand

Historically, spring has been the hottest season for real estate. Currently, the number of listings on the market has decreased from last year. However, it is promising that once the social distancing has finished, there will still be a great number of homeowners that need to sell, and buyers who want to move forward.

Before social distancing was implemented, the real estate market throughout much of the country was experiencing low inventory. In many areas new construction builds were not considered essential services, therefore drastically decreasing the number of new builds available for purchase. This will create an even greater shortage of inventory and retain value for the existing homes being listed for sale.

Ultimately, the majority of Americans still feel like it is a good time to buy or sell a property. Although it feels like the world has come to a halt, there are still houses being listed, buyers looking to purchase and real estate professionals ready to help.

The Top 5 Benefits of Selling Your Home in the Fall

Are you ready to move today? Don’t wait until Spring to list when you can get your house sold NOW! Despite what you may have heard, there are a lot of reasons why fall might actually be the best time to sell your home.

Less Competition

One of the perks of listing your home in autumn is that there is far less competition in the market. Since most home owners decide to list during the spring and summer, you won’t have to try and stand out amongst hordes of homes.

Higher Sales Price

Another bonus to listing your house in the fall is a higher sales price. You will be looking at the summer activity and what homes sold for during those months to determine how to list your house. The homes that sold in the summer will also be used as comparables on your appraisal which can yield a higher value.

More Serious Buyers

Buyers who are purchasing during the autumn typically have a sense of urgency in their home buying process. Often they have been looking through the warmer months and haven’t been able to find the right home for whatever reason. By the time fall comes around they are ready to buy and close on their new home. This also means fewer showings of buyers who are just trying to see “what’s out there” on the market.

Past the Back-to-School Slump

Contrary to what many people believe, August, one of the summer months, is actually one of the worst months to list your house. Many buyers with kids prefer to be settled in August, not go under contract. Their reasoning is so they will have time to unpack and settle in before school starts.

Homeowners who list in August may find themselves surprised by how little traffic they get coming into their home. Listing in the fall allows home owners to avoid the back to school slump in the real estate season.

Home for the Holidays

An added benefit to selling your house in the fall is getting settled into your new home for the holidays. Buying a house in the fall means you’ll start creating new holiday traditions and memories in your home right away.

Don’t let the real estate summer myth dissuade you from listing your house during autumn. You may be pleasantly surprised by all of the benefits to selling your home during the fall months.