This week, we’re looking back at the week of December 7-11 to analyze the residential real estate market in the Tri-Cities and surrounding areas. As always, keep in mind that these numbers are rounded averages and won’t be 100% exact, but they do give a great snapshot of the current market. All data was collected on the MLS (multiple listing service) for the Tri-City associations.
Last week, there was an average of 420 residential properties listed for sale, for an average listed price of $406,800. Of those, 210 were new construction, for an average listed price of $428,617. The average days on the market was 58 days.
What do these numbers mean? Once again, we’re seeing the number of properties listed decreasing. This is to be expected, as many people choose not to move during winter months or around holidays. However, 420 is exceptionally low even for winter, continuing our trend of low inventories that we’ve seen all year. After holding steady for several weeks, the average listed price of properties increased fairly significantly this week. With inventory dropping lower and lower, sellers can ask higher prices for their homes due to lack of competition. The number of new construction properties for sale remained fairly consistent this week; however, we saw the price of new construction increase as well after weeks of staying steady. Many builders will begin raising their prices, due to material shortages plaguing 2020 and upcoming energy regulations that will require all homes built after February 1, 2021 to adhere to stricter codes. Due to these impending price increases, if you were interested in new construction, now is the best time you’re going to have to buy before the new regulations increase prices further. The average days on the market increased again this week, which isn’t too surprising. Fewer homes on the market means many buyers will be waiting longer to find the home they want, and higher prices can drive some buyers away from the market temporarily. Additionally, many people choose not to buy in colder weather and near the holidays, meaning homes can sit slightly longer than they do over the summer.
There was an average of 847 properties pending last week, with 394 of those being new construction. The average listed price of these pending homes was $345,911, and the average days on the market was 5 days.
What do these numbers mean? For another week in a row, we’re seeing the number of properties pending decrease. Of course, this makes sense with fewer active listings, as fewer homes for sale means fewer homes will go under contract. The number of new construction properties pending, however, remained about the same this week, showing how strong and steady our building market is. The average listed price of pending properties increased once again this week, in no small part due to the increased average listing price of active properties. Still, the average listed price of homes under contract is lower than the average listing price of active homes, showing that the properties that are going under contract tend to be more competitively priced. The average days on the market has remained the same this week at just five days, meaning buyers have less than a week to see a property, on average, before it’s gone.
A total of 81 properties closed escrow last week, for an average price of $364,708. Of those, 20 were new construction, for an average price of $390,707.
What do these numbers mean? The number of properties sold fell once again this week; this isn’t surprising, however, as fewer homes active and pending leads to fewer homes sold. After a slight dip in price last week, the average sold price has bounced back up to where it’s been sitting for several weeks now, showing that even with low inventory, our market has remained fairly steady. The number of new construction properties sold has also remained roughly the same for several weeks. However, once again we saw the average sales price of new construction fall this week.
So, what do these numbers mean for you? As a seller, the market is still fantastic. Low inventory and increased listing prices are what every seller wants to see, so as long as you aren’t too scared to move boxes in the cold, now is an excellent time to sell. Fewer homes on the market means you have less competition and can price your home at the top end of its price range. Homes are still going under contract ridiculously fast; at just five days, you won’t have to wait long to find a buyer for your home. If you’re thinking of selling, or are just curious what your home could be worth in today’s low inventory market, contact us for a free property valuation report!
As a buyer, the market remains fast. You have to be quick to find the homes you want, because if you choose to wait to see a home, it may not be available the following day. With a lower inventory, you may have to wait longer to find your perfect home. But don’t worry, our agents are experts at finding you the home you want and getting your offers accepted, so if you’re thinking of buying, contact us today! Don’t be concerned about rising prices, because the average APR on mortgages keeps falling, down to a record-low 2.75%! You can get a loan today for a house that you couldn’t even think of having a year ago. If you need a lender, we’ve got several on hand ready to help you finance your dream home, so contact us today!