As we continue to navigate the coronavirus pandemic, I wanted to bring you an update on our real estate market and the changes we’ve made to help keep our clients safe and healthy. As for the market right now, we have just a one-month supply of homes and very strong buyer demand. While we’re still helping buyers and sellers do business every day, we’re doing so carefully and safely by utilizing a lot of new, virtual tools.
As a real estate professional, my goal is to keep you informed of what’s going on in the real estate sector amid the coronavirus pandemic. We haven’t yet seen a direct impact from the coronavirus on the market as of today, though we’re tracking the numbers daily, and I promise to keep you informed as best I can while the situation continues to develop. In terms of the market, we have been seeing a daily increase in the number of listings. To find out why that is and even more details about the market, watch this short video.
Welcome to your first Pierce County market update of 2020! Let’s dive into the latest year-over-year stats.
Home values have increased by 9%, but inventory has decreased by 45%. Inventory was already low in 2019, so this further decrease drives demand and makes homes that much more valuable.
Here are the top three most expensive areas to live in Pierce County:
1. Gig Harbor (median sale price: $534,000)
2. Fircrest (median sale price: $490,000)
3. Northern Tacoma/Browns Point (median sale price: $449,000)
On the flip side, here are the three most affordable areas to live:
1. Central Tacoma (median sale price: $318,500)
2. Parkland (median sale price: $322,000)
3. Spanaway (median sale price: $326,000)
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All in all, we’re in an incredibly hot market.
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Which areas have homes with the highest chance of selling? Oftentimes, this mirrors wherever the most affordable areas are:
1. South Tacoma (322% chance of selling)
2. Parkland (320% chance of selling)
3. Central Tacoma (300% chance of selling)
These numbers are unheard of, and it means more homes are selling than being listed each month. Remember, in terms of absorption rate, anything over 20% constitutes a seller’s market, while anything below 15% constitutes a buyer’s market. That being said, here are the three areas where homes have the lowest chance of selling:
1. Gig Harbor (52% chance of selling)
2. Roy (70% chance of selling)
3. Graham (78% chance of selling)
All in all, we’re in an incredibly hot market. If you’re thinking about selling, now is a great opportunity. Also, keep in mind that interest rates just dropped, which makes things that much better for everyone.
As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help.
First, let’s review what an iBuyer is. An iBuyer is a company or investor who can make a cash offer for your home and close quickly with little hassle. You can pick the closing date, when you want to move out, and not have to worry about making any repairs to your home or staging it for the market. The downside to this convenience, though, is that you end up selling at a discounted price.
There is no “right” or “wrong” answer as to whether you should sell to an iBuyer, so let’s look at the specific details of selling this way versus selling with a Realtor such as myself.
Essentially, it’s the same thing as selling with a wholesaler versus selling with a retailer. In this case, the iBuyer is the wholesaler: They make their offer price appealing up front, but when you factor in the associated costs of selling, you don’t net as much as you think you will.
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Essentially, it’s the same difference as selling with a wholesaler versus selling with a retailer.
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Selling to a retailer means you’ll have to go through the extra steps of preparing your home for the market, but their job is to get you the most money possible, so your chances of earning greater net proceeds are much higher.
This is why it makes more sense for most people so sell the traditional route—with a Realtor. There are certain circumstances when it makes more sense to sell to an iBuyer, though. If you’re in a situation where you need a significant influx of fast cash, iBuyers are a good option. Also, keep in mind that there are plenty of iBuyers out there to choose from, and I’d be happy to help you pick one if you do decide to go this route. There will never be a lack of investors willing to buy your property quickly and at a discount.
Remember, the Hauer Home Team is here to serve you and the people you care about, so if you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.
I’ve got a quick update for you today so you know what’s going on in the Pierce County real estate market as we head into the 4th quarter of 2019. The latest Q3 numbers are in, so I’ll give you a quick look at what I’ve been noticing out there.
For starters, the hottest spot in all of Pierce County is Central Tacoma. Year over year, we’ve seen a 14.7% increase in home values there. The median home value is $351,000.
On the other end of the spectrum, we have Gig Harbor. This area has seen 0% appreciation since this time last year, but still has a median sale price of $500,000. This is the highest median price in all of Pierce County. Inventory is down 15% from where it was last year as well.
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Gig Harbor homes didn’t appreciate much, but they still have the highest median price.
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Throughout all of Pierce County, we have about 20% fewer homes to choose from than we had at this time last year. This is great news for sellers who have been on the fence. With decreased inventory, you have that much less competition for your property. This will give you a much better position and a much greater chance of selling for top dollar.
Our market is much more challenging for buyers at the moment. No doubt about it. That being said, I would encourage you to buy now. My wife and I are actively purchasing properties right now even though it's a “seller’s market.” Interest rates are still low, and are only projected to increase from here on out. We have helped buyers in this kind of market and would love to help you too.
If you have any questions for us in the meantime, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.
