Shrinking inventory is spurring activity, with some brokers reporting a "shortage of good listings" and "signs of normality." Total inventory is down nearly 13 percent from a year ago. Home sellers around Washington state are starting to a see something that had all but vanished in recent months: multiple offers. The market is showing signs of normality after three years of decline. The reduction in new inventory is creating more balance between supply and demand, putting buyers and sellers on equal footing when negotiating a sale. This is very positive news and should add to the trend toward price stabilization in many areas. Fewer buyers are making low-ball offers and sellers are being more proactive about pricing their homes to be competitive in today's environment. Both buyers and sellers are beginning to get the message of today's market, which is "be realistic".
What's expredicted:
It is believed that several indicators show the housing industry is recovering on its own. Though it is a slow process, it expects to continue for the balance of 2011 and into 2012.
Many of today's buyers are not seeking loans that stretch their budgets as in the past. This will prompt banks and the secondary market to regain confidence, and eventually loosen their credit guidelines and roll out new loan programs. Buyers will have to look at making their first offer their best offer, even on bank-owned homes. The days of lowball offers will soon fade and short sales losses will tighten. As prices stabilize and inventories drop, many buyers will feel the chance at home ownership at bargain prices slipping from their grip.
Below is the countywide residential sales statistics in WA state:
(click on the table below for a larger image)
Compiled by PING Real Estate
(Data Source: Northwest Multiple Listing Services April 5 News Release and NWMLS online stats)
