2013 brought
lots of good changes in our local real estate market. Prices and
sales volumes have risen, and foreclosures have dropped
dramatically. Along with historic low
interest rates, the local real estate market continues to heal from the pains
of the implosion of the real estate bubble.
This is all great news as we move into 2014 and the real estate market continues to improve.
Current homeowners will see their home values continue to rise and recoup the losses over the last 5 years.
For the
second year in a row, prices are up in
both counties. Average home prices are up 10%
in Snohomish County and 12% in King
County.
As we predicted
exactly a year ago, lack of inventory is influencing the market. This caused a heated spring and summer market
with rapidly rising home prices and multiple offer situations the caused plenty
of frustration for homebuyers.
Until April
of 2013, for 18 consecutive months prior, sales outpaced new listings. That
brought fear that we just might complete run out of inventory altogether! But that trend started to reverse itself by
summer and inventory continues to slowly increase.
This chart
really shows just how much active inventory has been shrinking over the past
few years. We can also see in this chart
the dramatic decline in distressed properties.
Short sales and foreclosure continue to decline which also helps the
market to stabilize.
For 2014 we
expect inventory to continue to increase slowly. With interest rates still remaining at
historic lows we expect the market to be brisk again during the spring and
summer months.
2014 will be a good market.
While interest rates remain at historic lows, it will still be an
excellent market for first time homebuyers.
For those looking to sell and move to a new home, it will be a great
time to take advantage of improved home prices and low interest rates!
