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Real estate buyers may be enjoying a not-so-seasonal shift in their favor

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It’s not unusual for those who pay attention to the housing market to notice a downturn in activity as summer ends and the weather cools into fall. In 2020, the market was working itself into the frenzy we saw at the beginning of 2021, and we did not see the typical slowdown. This year, a number of the metrics point to a cooler market, but the reasons may not be what they usually are.

According to Redfin, the average number of offers per listing in September was lower than it’s been all year. In August, about 59% of offers on Redfin listings faced competing offers, down from a peak of 74% in April.

The 2021 real estate market has left buyers fatigued and downright angry. After the maddening competition in the first quarter, the battles eased in the spring and buyers became more selective. What we’ve observed locally is that homes that need work will sit longer and sell closer to list price while homes in the best condition with fine finishes inside and out, and in desirable locations, will continue to fetch top dollar.

For example, our team recently represented the potential buyer of a home listed for under $500,000 near downtown Olympia. Though our client’s offer escalated 5% over list price, they lost to a bid that went well into the mid-500s. If you consider the present labor and supply climate, with endless supply chain delays, increasing shortages, and a lack of contractors, it makes sense that a turnkey home would get even more interest than usual.

Homes that don’t have these qualities are sitting longer and with fewer offers. Here in Thurston County, our team has tracked a steady increase in price reductions, accepted contingent offers, “back-on-markets,” and the number of days a home spends on the market since June of this year.

Sale prices are not escalating as they did earlier in the year, but they are holding steady. Even with just one offer, listings are selling for full price or above. Bearing in mind that their home may not earn multiple offers, sellers need to price mindfully. It also helps if they are willing to make small repairs and updates before listing. A well-staged listing and a willingness to wait a little longer for the right offer will help. We’re also seeing more sellers with a willingness to consider contingent offers in order to get a higher price for their home.

With more options to consider, buyers have a better shot at getting into a suitable home than they did this time last year, but none of this points to a clear-cut downturn. The personality of the housing market is shifting, and because it’s not just seasonal, it’s as important as ever to navigate such an important transaction with qualified representation no matter which side of the deal you’re on.

If you’re considering buying or selling a home this year, reach out to me. My team and I would love to help you. Contact me directly at 360-508-2800 or kwoodford@kw.com.

Kristy Woodford is CEO of Holistic Home Group, which is affiliated with Keller Williams South Sound. She has over ten years of experience as a broker of residential real estate in Thurston County and leads a team of realtors experienced in serving local buyers and sellers.

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