Hot Pierce County Market Update
Our latest Pierce County market update is hot off the press!
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After reflecting on the stats below, we would like to share some thoughts about how this affects our housing market.
First thing’s first: What may look easy is not always what it seems. Yes, it is a sellers market and you may be tempted to assume that selling your home will be easy. “Why would I need a professional to help me sell my house? I keep seeing multiple offers, and houses selling over list price, so why do I need anyone to help me in an environment like that?”
It’s a fair question—let’s look at some simple data for the answer:
Over the past three years in February, what percentage of homes were left over at the end of the month after all the new inventory came on that month in Pierce County?
Feb 2019 – 17.8%
Feb 2020 – 11.2%
Feb 2021 – 4%
How many people looked at my house before they made an offer?
Feb 2019 – 2
Feb 2020 – 2
Feb 2021 – 13
How many days do houses stay on the market?
Feb 2019 – 12
Feb 2020 – 10
Feb 2021 - 6
It seems that all this data proves is that anyone can sell their house. Well, that is true, but what is also true is that each seller has MANY more clients to deal with, and half the time to deal with them. With a market moving this fast, you don’t have time to learn “on the job.” What you risk as a seller is time, money, and legal risks. We can think of no other time where a professional was more necessary to protect buyers and sellers.
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SELLERS need professional guidance to address the following real life situations:
Do we set an offer review date, or take the first offer that comes in? (The wrong decision could cost you thousands of $, and in some price ranges, hundreds of thousands of $.)
What if our appraisal came in way lower than the contracted price? (This is happening daily, and also could cost you thousands.)
What if we only want offers that waive their inspection? (There are active lawsuits where buyers are fighting back on sellers for these “requirements.” Professional guidance here is critical.)
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BUYERS also have challenges:
How can we win against cash offers? (This is a challenge, but it is still possible and is being done every day.)
Do we have to waive all of our contingencies to win? (There are ways to craft your offer that allows you to make more informed decisions rather than waiving everything and “hoping all goes well.”)
Should I wait for the upcoming “bubble”? (There is not one economist that says the Pacific Northwest is in a housing bubble. Our issue is supply and demand, and has nothing to do with the pandemic, and is not expected to return to a normal market until inventory reaches a more balanced level. Even when that happens, there is nothing that points to decreasing housing prices. Flattening yes; decreasing, no. The only question is, how much did you miss out on by waiting?
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Housing is primarily driven by life changes. It should not be used as a short-term investment tool; we all learned that in August of 2007. It is, however, an excellent tool for growing and establishing long-term wealth. This is what we suggest you base your purchasing or selling decisions on. All markets are different, and this one may not be one you want to wrangle with, but if you do, we highly suggest you hire a professional to help guide you through the process.
Like professional athletes, the good ones only make it look easy, and as any professional would tell you today, it is not.
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If you'd like to get in touch with a local real estate expert, message us here and we will connect you!
