With Thanksgiving arriving late this year the traditional Fall market also ran longer and just now will reach holiday mode where many buyers, sellers and brokers pause to enjoy the holidays and ask, “What will next year bring in the real estate market?”
Traditionally, the Winter market provides a bit of a breather before the late Winter early Spring market comes on with a roar. Through most of this year it appeared that trend would be interrupted for 2020 as we saw prices in the Seattle Market moderate and actually go negative in late summer all the while housing inventory which was historically low grew rapidly as we hit spring and summer. Within months we went from less than a month of inventory of homes for sale to nearly 3 months, a huge statistical jump.
Then about 90 days ago the market reversed itself again. Inventory began dropping quickly back to two months of inventory in King County which many experts are calling the “new normal” for inventory in our region. Interest rates, which were already historically low suddenly dropped even lower as our markets adjusted to a generally weak world economy and then most likely due to falling inventory and interest rates, prices in the Seattle area have increased for two consecutive months.
It seems that the vital Seattle area economy has more strength than many predicted. The tech market fueled by Amazon’s expansion to the Eastside along with the surge of construction this will generate creates a baseline for a local economy positioned to keep expanding well beyond what a normal business cycle would indicate. It looks like more good times ahead.
So what once looked like a possibly slower Spring market now looks like a repeat of the last eight years, with lots of competition, multiple offers and rising prices. If a buyer can find a home before the Spring market takes off they would be wise to do so.
SOURCE: Coldwell Banker Bain