Real Estate Opinion for Thurston County and Olympia Washington

The Housing Conundrum; A Reality Check

For those of you who watch the housing market statistics for Thurston County, you may have noticed that we have a very unique situation forming in our market.  Housing prices (for homes sold) have been going up since January, while total numbers sold have been declining.  This represents a clear sign that a correction of some sort is immenent or underway.  If sales volume goes down, prices should go down as sellers try to entice buyers.  Conversely, an increase in sales volume should dictate an increase in prices…..simple supply and demand. 

Chicken Little:  I am not suggesting that the market is about to tank, I am stating the obvious; some of us have gotten a little bit “irrationally exuberant”, and need tone down our expectations.

What does this mean for home sellers and buyers in Thurston County?  While I certainly can’t predict the future; if I were an economist, I would guess that the sector of our market that consists of the “more desirable homes” will continue to do well, and those that don’t fit the mold will sit on the market until sellers reduce prices to a point that buyers will accept.

If you are a seller and want to get your home off the books, I recommend that you set your price in accordance with what the current market will support.  Sales prices based on what the neighbors sold for last year don’t count, what counts is that there is more competition for buyers than there has been in a long time, and many more homes on the market.  If you, the seller, look at this from a supply/demand perspective, and price accordingly, you will do fine; the aggressive seller will get the sale.

If you are buying, all of this is great news.  The upside of our market will almost certainly pay off in the long run, but the days of 25% annual appreciation are over for the near term.  We are seeing some really great deals in our market, and buyers have a large inventory to choose from coupled with lots of motivated sellers….So if you are buying, its official in my book, this is a buyers market.

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