Today I’m sharing a Pierce County real estate market update for May 2021. This market is on
fire, and I continue to say that every month because I’m still blown away by what we’re seeing.
At 0:35 in the video above, you can see a graph that shows our five-year pricing trends. We just
hit an all-time record: The median home price has reached $500,000. We’ve seen a 20% increase in
home values in the last year, while historically, values increase around 5% per year. In last month’s market update, I said we were consistently seeing homes spending an average of six
days on market and that I didn’t see how it could get any lower than that. However, we’ve now dropped
to an average of five days on the market, so homes are moving extremely quickly.
At 1:55 in the video, you can see a chart that illustrates pending sales in the last five years. Pending
sales are those that have gone under contract but haven’t closed yet. The number of pending sales
has risen 41.61% year over year. At 2:30, you can see a graph showing active listings versus the number of sales in the last five years.
We currently have a very low number of homes available for sale; that number has declined 45%
compared to this same time last year. At the same time, the number of homes selling is much higher
than the number of homes for sale. The number of homes sold has climbed 46% over the last year.
That means our market is in a feeding frenzy; people are buying more homes than ever. A seller’s market is when there is fewer than six months’ worth of homes on the market and home
values are trending upward. When we have six to seven months’ worth of homes, we’re in a neutral
market, and home prices will only appreciate with inflation. If we have seven months or more of homes
on the market, it’s a buyer’s market, and home prices will depreciate. Knowing all this, we’re in more of
a seller’s market than we’ve ever been before. We have only half a month's worth of homes for sale right now. If no more homes were to come
onto the market, we’d sell out in just 15 days. The number of homes for sale has just been decreasing
and decreasing. This is the hottest market I’ve ever seen, by a long shot.
If you’re considering selling, don’t hesitate to reach out to me. I’d be glad to be a resource and educate
you about timing, what you need to know, preparation, and more. Feel free to contact me via phone or
email anytime if you have questions about the market or real estate in general. I’d love to speak with
you.
