As of July 2021, the median sale price was $512,750 in Pierce County. This is somewhat of a dip; we peaked in June, where the median sale price was at an all-time high. However, don’t think that this means the market is crashing. It’s way too early to determine anything like that (although the media may spin some stories about it). Ultimately, that represents a 16.1% increase in home values since this time last year, which is huge considering that 5% annual appreciation is the historical norm. In terms of the median list price, homes in Pierce County are selling for 102.5% of their list price. In today’s market, the list price is no longer the same thing as the asking price; the list price is simply the starting bid. As we look at the average days on market, we can tell that the market is moving extremely fast. Homes have been selling consistently in just five days. That doesn’t leave a whole lot of time for buyers to act, especially considering that many homes are selling in even less time.
"There would have to be an extreme influx of inventory for things to stabilize."
Pending properties are the properties that buyers have put money down on but which haven’t yet gone to closing. As of July this year, there were 1,618 pending listings in Pierce County, which is a 5% year-over-year increase. We are seeing some very strong sales activity in our local market. At 3:37 in the video above, you’ll see a chart that compares the number of active listings to the number of actual sales over the last five years. The chart shows that the number of homes for sale is down 7.1% compared to just a year ago, whereas the number of homes sold is up 5.6%. This demonstrates how much of a feeding frenzy we’re experiencing in the market today. What impact does our low inventory have on home prices? In a buyer’s market where we have more than seven months of inventory, home prices will depreciate. In a neutral market with between six and seven months of inventory, home prices will only appreciate with inflation. In a seller’s market like ours where we have less than six months of inventory, home prices will appreciate. We currently have only 21 days of inventory, and there would have to be an extreme influx of inventory for things to stabilize. Keep an eye on my blog for future updates on the market so that you can stay abreast of all the real estate trends that may affect your prospects. In the meantime, if you have any questions about the market or buying or selling homes, don’t hesitate to reach out to me. I’d love to be an advocate for you.
