5 Things You Need to Know About Pierce County’s Spring 2021 Real Estate Market
Navigating the real estate market this spring is undoubtedly a challenge whether you are a buyer or a seller. Things are changing fast, and as always, we update our agents several times each month on the latest local real estate trends via classes and office hours. Our agents are equipped with valuable information to help you through each part of the process, whether you are selling your home or buying a home.
There is a lot of the information out there about the Pierce County market, and it can become overwhelming, fast. Here are 5 things you need to know about Pierce County’s Spring 2021 real estate market:
1. We’re not in a housing bubble.
We’ve heard a lot of rumors lately about whether or not we’re in a housing bubble. Pierce County’s current sales volume and rate of price escalation hasn’t been seen since 2006 (and we know what happened right after 2006!). But things are a lot different this time around.
There is so much pressure and demand on the market right now, and high demand for homes and a low supply is resulting in price appreciation. Many people are saying that because housing prices are going up so fast there must be a bubble, but just because there is not enough supply does not mean there is a bubble.
Back in 2006, there were too many loose lending practices; there are much more responsible lending standards today. This means that today, it’s harder to get a mortgage loan and buy a house in the first place. And back in ~2006, people were also making very speculative real estate investments.
Here’s another example: During the first quarter of 2006 there were 4,100 active single-family home listings in Pierce County. And during the first quarter of 2021, there were 371 active single-family home listings in Pierce County. That means there are 11x fewer homes for sale in Pierce County right now than there were in 2006. That is a huge difference, and the demand from buyers is very real right now.
2. There are actually more listings in Pierce County this year than there were last year.
It might seem like there are significantly fewer homes coming on the market this year, but we actually have MORE listings this year. It’s not even necessarily that we have low inventory, we just have uniquely strong demand from buyers in Pierce County and they are buying homes quickly!
Economists and regional professionals agree: This inventory issue is NOT going away anytime soon.
3. You might be able to still get a deal in this hot market.
There are still some “deals” to be had in this competitive market, but of course this depends how you define a deal. With so many homes receiving multiple offers and going for over list price, finding a home with less competition may be where your “bargain” awaits.
Market times in Pierce County are in the single digits right now, meaning that most homes close to the median home price are selling in under 10 days. If you're selling and your home is near the median home price and it is still on the market after 10 days, something is not right.
Likewise, buyers may find that properties that have not been marketed properly (perhaps meaning fewer people saw the property, or the property was not showcased well) present an opportunity. We recommend you work with a real estate professional who is an expert in the neighborhood you’re looking in; they may even be able to help you find a property that is not yet for sale.
4. Even in this market, sellers are still leaving money on the table.
Sellers maintain a strong selling position, but we still want to help you maximize your investment when you go to sell your home. We are seeing examples of clients not being represented properly by their listing agents on a routine basis. For sellers, this can lead to leaving tens or even hundreds of thousands of dollars on the table. You need to make sure you are being represented by an experienced real estate professional.
5. Buyers still have equity to gain by buying a home in Pierce County sooner than later.
From 2020 to 2021, Pierce County’s median home price went up 16.5%. And just in the last month alone (March 2021 to April 2021), the median home price in Pierce County went up by 5.95%.
The market is difficult and competitive, and these trends will continue. If the time is right for you, it’s worth trying to buy a home. With that being said, this is NOT a market you should wade into without trained professional help. You need to be prepared, and your REALTOR® will be able to advise you on exactly what to do.
Keep in mind that everyone’s situation is unique, and your real estate agent will be able to create a tailored plan just for you. If you have any questions about buying or selling a home, we’re ready to help. Get in touch with a local real estate professional here: https://www.windermerepc.com/contact