With the year 2021 the real estate market exploded! Here is a brief run through of the 2021 market with a focus on Thurston and surrounding counties. We'll take a closer look at this year's stats like home sales, average market time and more while also comparing it to the "quote-unquote" 'normal' and why the definition of a normal market is changing.
Available Homes for Sale
Seasons will always impact the market. Right now, with the holiday season and the dark, damp time of year upon us we are seeing a predictably low amount of new listings but in reality 2021 as a whole has been consistently low inventory with just a couple hundred on the market currently in Thurston County.
Days on Market
This low inventory combined with the pace of the market creates lots of competition. The average time on market is just 15 days and here at MVP it's even shorter, usually just 7 days. Find out how that time frame might change in the 2022 Market Forecast.
Months of Inventory
When taking the pace of the market and comparing it to the average number of homes for sale, we find the absorption rate, or the rate at which available homes are sold. Right now, we are looking at just .6 months of inventory in Thurston County or just a couple of weeks worth.
Home Sales vs Inventory
While we might have low inventory, this is not synonymous with a low number of sales. Yes, we're talking supply vs. demand. We are experiencing a lack of inventory for the current demand but a record number of sales for the last several years.
Why the High Demand?
The recent surge in home prices is due to more active buyers in the market than there are homes for sale. More buyers trying to take advantage of the low interest rates and affordability before it's gone. We are also seeing an influx in the number of Millennials joining the housing market, often times as first time homebuyers. With Millennials taking advantage of their monthly housing cost to build wealth, demand is higher than ever. When demand is high and supply is low, prices will naturally continue to rise. If you're a Millennial and looking to learn more about how you can join your peers on the path to owning your first home, check out our guide A Millennial's Guide to Homeownership.
Why it Might Cost You to Wait?
Early 2021 saw the lowest mortgage interest rates in recorded history but rates are starting to climb. When mortgage rates go up, it impacts affordability. Here is a calculation prediction of how much more it will cost you waiting just one year to buy. To learn more about buying and making your dreams of homeownership happen in 2022, check out our Home Buying 2022 Guide.
A perfect storm of low inventory and high demand means don't expect home prices to drop in 2022. Think about your homeownership goals and considering purchasing a home before prices and mortgage rates rise further. Find out how in our Buying Guide Winter 2022 or debunk some common misconceptions about home buying with us in our Millennial's Guide to Homeownership.
If you have given any thought to selling, now is the time as our Selling Your Home Winter 2022 Guide goes more in depth on. Today’s buyers are motivated to purchase a home and this might be the best time to sell in our lifetimes. If you're looking to make a move, you have a great opportunity to get the best of both worlds this season.
Let’s connect today to discuss how much leverage you have, and why it might be best to make that move now instead of later. Contact Us and don't forgot to download your 2022 Real Estate Market Forecast.