It’s time for your 2017 real estate market recap. How did the Pierce County market do this year?
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The current median sales price has surpassed the old market peak from 2007.
It’s time for your market overview. As we wrap up 2017, I want to take a look at where we’ve been in the past, where we are in the present, and projections for the future.
First, let’s look at supply. Zero to five months of inventory represents a seller’s market, when home prices are on the rise. Six to seven months of inventory represents a flat market, which is a healthy place to be. In a flat market, home prices rise according to inflation. Eight months or more of inventory puts us in a buyer’s market, which is when we see values start to decline.
Right now, we only have one month of supply. At this time of year back in 2009, we had 15 months of inventory. That is a phenomenal difference.
Our median sales price at this time of year in 2006 was $279,500. The market then peaked in the summer of 2007. By this time of year in 2011, the median sales price had dropped to $185,000.
First, let’s look at supply. Zero to five months of inventory represents a seller’s market, when home prices are on the rise. Six to seven months of inventory represents a flat market, which is a healthy place to be. In a flat market, home prices rise according to inflation. Eight months or more of inventory puts us in a buyer’s market, which is when we see values start to decline.
Right now, we only have one month of supply. At this time of year back in 2009, we had 15 months of inventory. That is a phenomenal difference.
Our median sales price at this time of year in 2006 was $279,500. The market then peaked in the summer of 2007. By this time of year in 2011, the median sales price had dropped to $185,000.
The current median sales price has surpassed the old market peak from 2007.
Now, the median sales price is at $287,725. It’s very nice to see that after the huge collapse of the entire economy, we have surpassed where we were back in the old peak days. It’s a very different market now than it was then. There are no concerns about a bubble bursting.
That said, we do need a healthy correction. That involves you sellers putting their houses on the market. We have a real lack of inventory and we need more homes on the market.
Finally, let’s take a look at the average days on market. In 2015, the average days on market was 58. That number has dropped to 32 days on market in 2017. That is a healthy spot for the average days on market to be.
You may think that since it’s a seller’s market, you should wait to buy a home. That is not the case. Interest rates are still low, which means now is a smart time to buy real estate.
If you have any questions or plan on buying or selling a home in 2018, just give me a call or send me an email. I would be happy to help you!
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