It’s been a hard February for buyers, and we’re not just talking about the weather! They’ve been dealing with limited inventory, rising interest rates, and fierce competition for the best homes. It is not a market for the faint of heart, that’s for sure. But there is hope on the horizon.
Inventory & Days on Market
As the snow melts away and flowers start popping up, we hope to see more listings come onto the market. It’s no secret that we are still in a Seller’s market and that inventory is tight. With only 42 new listings on the market last month, buyers are feeling the pinch. Many are turning to older listings.
That might sound great for sellers, but the longer a home is on the market, the more likely it will sell for less than the listed price. In fact, in the last 45 days, there have been 28 listing that have been on the market for 31 days or more finally close. Of those, 24 closed below their original listing price. The 4 homes that sold for full list price were all new construction.
Speaking of new construction, it’s on the rise! That’s great news for buyers as new construction is the best way to solve the inventory crisis. If we look at new construction sales over the last 5 years, we can see that there is a gradual increase of homes being built and sold in Kittitas County.
Median Sales Prices & Interest Rates
Median sales prices are still rising as buyers are making offers with a new sense of urgency. Why? Interest rates are starting to rise! The Federal Reserve has announced that they plan to raise interest rates at intervals this year. This will cause many buyers to be priced out of their ideal home, and force them to compromise on a home in their adjusted budget. To avoid that, they want to purchase now and lock in their mortgage rate before it gets too high. We are likely to see a flurry of buyer action as the spring market takes off, which may mean higher median sales prices and sale-to-list price ratios.
This spring is going to be fast and scorching hot. Make sure you have a reliable real estate agent on your side—or better yet, a team of Realtors® with local expertise. When you’re ready to learn more about the market around your home, reach out.